Stadium has delivered another strong set of half year results in line with management’s expectations and demonstrated that their integrated technology proposition is gaining momentum.
Just announced unaudited interim results for the six months ended 30th June 2015 show continued growth in revenues and adjusted profit before tax, as well as a significant increase in the contribution from their Technology Products division, which accounted for 44% of total revenues compared to 25% for the same period last year.
The Technology Products division grew revenues by 118.8% including the first time contribution of Stadium United Wireless (SUW), a specialist M2M wireless connectivity solutions provider acquired by the Group in 2014. Excluding the contribution of SUW, the Technology Products division delivered excellent underlying organic sales growth of 12.7%.
As a result of a shift in sales revenue mix towards Technology Products division normalised profit before tax (after adjusting for non-recurring reorganisation spend and amortisation of acquired intangibles) increased to £1.4m.
Key events in the last six months contributing to Stadium Group’s excellent performance include; the relocation and investment into a new state of the art manufacturing facility in Asia, appointment of Group Commercial Officer to drive integrated technology sales strategy, opening of three Regional Design Centres (RDCs) to strengthen technical capability, and a strong growth in the Technology Products order book of circa 30% vs. 2014 year end.
The acquisition of Stontronics, a leading manufacturer and distributor of Power Products, after the period end confirms the strengthening of their Technology Products offering. Stontronics’ extensive range of power products, strong supplier network and established distribution partnerships complements the Group’s existing power business, Stadium Power, offering product synergies, economies of scale and a much stronger proposition to their global OEM customers.
Commenting on the results and outlook, Charlie Peppiatt, CEO of Stadium Group, said: “We are beginning to realise the benefits from the Group’s restructure to two operating divisions; Technology Products and integrated Electronic Manufacturing Services (iEMS), enabling us to take advantage of the growth markets in which we operate, in addition to driving further operational efficiencies across the Group.
Our investments in upgraded manufacturing facilities, strengthened international management team, and the opening of our three regional design centres during the period significantly enhances our technical capability to offer customers a complete end-to-end integrated technology solution, from concept through to delivery.
This is an exciting time for Stadium as we continue to progress our strategy of making targeted, complementary acquisitions to strengthen our integrated technology offering. SUW, which we acquired in July 2014, has performed very well, attracting a number of new customer wins and contributing significantly to increase revenues and improved gross margins. Our latest acquisition of Stontronics Ltd after the period end augments the Group’s existing power product capabilities and further strengthens our overall integrated technology offering.
We are pleased to see progressive growth in our Technology Products order book for the second half of 2015. We expect this improvement to continue going forward and therefore remain confident about the prospects for the current year and beyond.”
The half-yearly report is available on the Company’s website: www.stadiuminvestors.com/reports-accounts/
