Preliminary Results 2017

Stadium Group plc (AIM: SDM), a leading supplier of design-led technologies including connectivity solutions, power supplies, human-machine interface and electronic assemblies, announces its results for the year ended 31 December 2017.

 Financial highlights 

  • Revenues up 15% to £61.1m (2016: £53.1m)
  • Technology Products sales up 21% to £38.5m (2016: £31.9m), now 63% of Group sales
  • Electronic Assemblies sales up 6% to £22.6m (2016: £21.2m)
  • Normalised gross profit margin* of 20.7% (2016: 25.1%)
  • Normalised profit before tax* up 8.5% to £4.6m (2016: £4.2m)
  • Reported profit before tax up 81% to £4.0m (2016: £2.2m)
  • Normalised earnings per share* of 10.0p (2016: 9.1p)
  • Statutory earnings per share of 9.2p (2016: 4.9p)
  • Net debt of £11.9m (2016: £3.3m)
  • Net pension liabilities (IAS 19) reduced to £3.2m (2016: £5.6m)

* Adjusted for non-recurring items, amortisation of acquired intangibles and interest charged on the fair value of deferred consideration.

Other highlights

  • Order intake increased by 11.4% to £66.6m (2016: £59.8m)
  • Year end order book up 21.3% to £31.3m (2016: £25.8m) underpinned by Technology Products growth driven by the Group design hub in Kista, Sweden
  • Acquisitions of Cable Power (Jan 2017) and PowerPax UK Ltd (Sept 2017) successfully integrated
  • Board changes:
    • Winston North appointed as Group Finance Director
    • Jonathan Flint appointed as Non-Executive Director

Post-period end recommended cash offer by TT Electronics plc

On 15 February 2018, the Company announced that it had reached agreement on the terms of a recommended cash offer for Stadium by TT Electronics plc, valuing the entire issued share capital of Stadium at approximately £45.8 million. In addition, the Company has declared a special dividend of 2.1p which is conditional on completion of the offer transaction, in lieu of any final dividend for the financial year ended 31 December 2017. On payment, including the interim dividend for 2017, this would take total dividends paid to 3.1p per share (2016: 2.9p).

Commenting on outlook, Chairman Nick Brayshaw OBE said:

Our strategy in transitioning the Company to a design-led technology business with a focus on wireless connectivity, power and interface and displays has been successful and is borne out in these results. We are now entering the next phase of growth following the offer from TT Electronics, an offer which we believe represents an attractive and certain value in cash today for Stadium shareholders, reflecting the high quality of the business, its people and future prospects. The strategic fit with TT is strong and the Stadium Board believes that the combined business provides considerable scope for accelerating the development of Stadium’s strategy, whilst continuing to broaden the opportunities for our people, our customers and our products.”

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