Acquisition

This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR).

Stadium Group plc

("Stadium", the "Company" or the "Group")

Acquisition of PowerPax UK Ltd

Stadium Group plc (AIM: SDM), a leading supplier of design-led technologies including connectivity solutions, power supplies, human machine interface products and electronic assemblies, announces the acquisition of the business and assets of PowerPax UK Ltd ("PowerPax"), a well-recognised brand serving the industrial power supply market, for a total consideration of £2.8m in cash ('the Acquisition').

The Acquisition is the fifth value-adding technology business to join the Group in the last five years, and strengthens Stadium's Power Division through the addition of complementary products and customers. The Acquisition is expected to be earnings accretive in its first full year of ownership.

PowerPax is based in Theale (Berkshire), within six miles of the Stadium Stontronics Reading site, and is a specialist value-added manufacturer and distributor of a wide range of power supplies, battery chargers and LED products, including AC-DC switch mode power supply units and DC-DC converters. Formed in 2000, the business has well established relationships with suppliers and is recognised as a specialist in the low to medium power space.

The addition of PowerPax augments Stadium's design-led technology strategy and offers cross-selling opportunities along with a wider proven supplier base and an experienced team. For the year ended 31 August 2016, PowerPax recorded sales of £3.3 million and profit before interest and tax of £0.4 million.

The Acquisition, which includes all assets associated with the business of PowerPax, excluding the property and some company cars, will be satisfied through a consideration of £2.5m cash on completion and a £0.3m deferred payment to be made within 12 months. The net assets being acquired have a value of circa £0.8 million. The consideration will be funded from existing cash resources and through an increased debt facility with our existing lender, HSBC. In order to support plans for further accelerated growth both organically and through acquisition, HSBC has agreed to increase the existing £5.0m revolving credit facility to £15.0m on a three-year term, with the option for a further two-year extension.

Commenting, Charlie Peppiatt, Chief Executive Officer of Stadium Group plc, said:

"PowerPax is an excellent synergistic fit for Stadium's Power Division; fully aligned with our growth plans for design-led technology products and ideally placed to seamlessly integrate its highly complementary product line into Stadium Stontronics. We expect to see the full financial benefits of this Acquisition from 2018 onwards."

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About Stadium Group plc (www.stadiumgroupplc.com)

Stadium Group plc is a leading supplier of design-led technologies including connectivity solutions, power supplies, human machine interface (HMI) and electronic assemblies with design and manufacturing operations in the UK, Sweden and Asia. The Company consists of two divisions:

1. Technology Products (60% of 2016 revenues)

· Connectivity solutions - design, integration and manufacture of machine-to-machine ("M2M") and Internet of Things ("IoT") wireless solutions

· Power supplies (including Stontronics) - custom and standard power products from 1W to 10kW

· Human machine interface (HMI) - intelligent interface and display solutions

2. Electronic Assemblies (40% of 2016 revenues)

· Electronic manufacturing services to global original equipment manufacturers