3rd Jul 2013 07:00
3 July 2013
Stadium Group Plc
("Stadium" the "Group")
Trading Update
Stadium Group Plc (AIM: SDM), a leading electronic technologies group, provides the following pre‐close trading update for the six months ended 30 June 2013.
As previously announced at the AGM in April, trading in the first half has continued to be challenging, particularly in iEMS where margins have remained under pressure. As yet there is no sign of any easing of the margin pressures being experienced in this business.
In order to fulfil customer orders and enable a more controlled transition to a single UK iEMS site at Hartlepool, it has been decided that the closure of the Rugby facility, previously scheduled to take place at the end of June, will be delayed by a maximum of 3 months. This will mean that some of the cost benefits arising from the closure will now not be seen until the final quarter of the current financial year. The rationalisation of iEMS manufacturing onto one site in the UK is ultimately expected to yield cost savings of circa £1 million per annum.
IGT has delivered consistently positive growth since the start of 2013 and continues to trade well. The power supplies business continues to perform in line with expectations.
As a consequence of the issues in the iEMS business, the Board is anticipating a more cautious outlook for the future prospects of that business in 2013 and hence the full year results for Stadium will be significantly below market expectations.
The current sales run rate across the Group is in line with previous expectations and by the end of Q3 2013, once the closure of Rugby is complete, profitability for the fourth quarter and beyond is expected to be restored to a level consistent with previous market guidance.
Stadium will announce its financial results for the six months ended 30 June 2013 on Tuesday, 10 September 2013.
Enquiries:
Stadium Group plc |
www.stadium-plc.com |
Charlie Peppiatt, Chief Executive Officer | Tel: 01429 852 500 or Mob: 07990 826 697 |
Joanne Estell, Finance Director | Mob: 07807 095 419 |
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Walbrook PR | Tel: 020 7933 8780 |
Paul McManus | [email protected] or Mob: 07980 541 893 |
Paul Cornelius | [email protected] or Mob: 07886 384 707 |
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N+1 Singer |
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Sandy Fraser | |
Richard Lindley | Tel: 0113 388 4789 or Mob: 07947 730 580 |
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