Stadium Group Plc (AIM: SDM), a leading supplier of wireless solutions, power supplies and electronic assemblies, announces its unaudited interim results for the six months ended 30 June 2016.
- Order intake increased by 22.5% to £30.7m (H1 2015: £25.0m)
- Group revenues of £24.3m (H1 2015: £25.1m) reflect the ongoing transition into higher margin design-led technology focused activities and lower activity in traditional Electronic Assembly
- Technology Products revenues up 14.0% to £13.9m (H1 2015: £12.2m)
- Normalised* gross margin up 250 bps 24.1% (H1 2015: 21.6%)
- Normalised* operating profit up 18.8% to £1.9m (H1 2015: £1.6m)
- Normalised* profit before tax up 14.3% to £1.6m (H1 2015: £1.4m)
- Reported profit before tax up 5.8% to £0.71m (H1 2015: £0.67m)
- Net debt reduced to £3.5m (H1 2015: £5.9m)
- Normalised* earnings per share of 3.7p (H1 2015: 4.2p)
- Reported earnings per share of 1.7p (H1 2015: 2.0p)
- Interim dividend of 0.95p per share, an increase of 5.6% (H1 2015: 0.90p)
*Adjusted for non-recurring costs, amortisation of acquired intangibles and interest charged on the fair value of deferred consideration.
- Technology Products division accounted for 57% of total revenues (H1 2015: 49%)
- Regional Design Centre opened in Stockholm to support growing wireless business
- Stontronics, acquired in August 2015, now fully integrated and performing well
- Leadership and technical talent development continues with several key appointments
- UK operations optimised by consolidating four manufacturing sites into two
- Group head office relocated to Reading
Commenting on the results and outlook, Chairman Nick Brayshaw OBE said:
“I am pleased to report that the half-year results show continued progress in transitioning Stadiuminto a design-led technology solutions business capable of supporting our customers across the globe from our network of regional design centres and manufacturing centres of excellence.
We continue to believe that by developing a more robust and customer focused operating model we will support further profitable growth across the Group going forward. Given the visibility and rate of growth in our forward order book, we remain confident that we will return to our higher growth trajectory next year and beyond.”