Trading update & Notice of Results

Stadium Group plc

("Stadium" or the "Company")

Trading Update & Notice of Results

Stadium Group plc (AIM: SDM), a leading supplier of wireless solutions, power supplies and electronic assemblies, provides the following trading update.

Significant progress continues to be made in transitioning Stadium from an electronic manufacturing services ("EMS") company to a design-led technology business. The first half of the year has seen a further increase in the contribution of Stadium's higher value and higher margin Technology Products division and the Company continues to be encouraged by a strong order book which has already increased by 20% since the preliminary results announcement in March 2016. The Board can also confirm that the recently acquired business, Stontronics, continues to perform in line with expectations.

However, whilst the Board remains confident that Stadium's customer-focused design-led proposition is compelling, the Company has received notice from a significant Wireless customer in the telematics space that, following a period of reduced call-off, they will move product design in-house and manufacturing elsewhere.

The loss of this customer will result in a delay to the Company's anticipated growth and full year results for 2016 are now expected to be below market expectations. Given the seasonality within the business, in line with previous years, the Board continues to expect that the Company will deliver materially higher profit in the second half of the financial year.

In the EMS business, sales are showing a quicker than expected decline, although this has been largely off-set by cost reductions and ongoing efficiency improvements.

For the full year, higher margin Technology Products revenues are expected to contribute approximately 60% of total revenues. This, alongside the benefits of a reduced fixed cost base, following the integration and rationalisation of recent acquisitions, and ongoing efficiency savings will enable the Company to deliver high single digit percentage growth in normalised profit before tax* for the full year, albeit this is lower than previous expectation, and will be achieved on revenues slightly behind last year.

In line with its previously announced strategy, the Company has developed a more robust and focused operating model by establishing strategically located design centres, manufacturing centres of excellence and regional fulfilment centres, to support further growth across the Company. Given the visibility and rate of growth in Stadium's forward order book, the Board remains confident that in 2017 the Company will return to its higher growth trajectory.

Cash levels in the business remain in line with management expectations.

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

"We are clearly disappointed to lose a significant wireless customer during the period and there's no doubt that this sets us back temporarily in terms of our ambitions for growth. Frustratingly the establishment of our new regional design centres didn't happen quickly enough for this particular customer. However, this reinforces our belief in the strategy of building strong design capabilities in the right locations and we are confident that we now have the teams in place to drive the significant growth expected in 2017 and beyond."

Stadium will announce its financial results for the six months ended 30 June 2016 on Tuesday, 6 September 2016.

*Normalised profits referred to in this announcement are stated before costs relating to acquisitions and disposals, business restructuring and incident costs, profit/(loss) on disposal of businesses, items deemed to be of an exceptional nature, impairment of goodwill and acquired intangibles.

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About Stadium Group plc (www.stadiumgroupplc.com)

Stadium Group plc is a leading supplier of wireless solutions, power supplies and electronic assemblies with design and manufacturing operations in the UK and Asia. The Company consists of:

· Wireless solutions - design, integration and manufacture of machine-to-machine ("M2M") wireless solutions

· Power supplies - custom and standard power product solutions from 1W to 10kW

· Electronic Assemblies - consisting of Human Machine Interface, intelligent "HMI" integrated solutions and Electronic Manufacturing Services ("EMS") to global original equipment manufacturers