News blog
Stadium Group
- BY: Andrew Hore |
- POSTED: 27/08/2008 |
Contract electronics manufacturer Stadium Group increased its interim profits by 13% despite a lower contribution from the plastics business.
Overall revenues increased from £19.9m to £23.1m in the six months to June 2008. The contract manufacturing business grew organically by 22% while the power supplies division grew its revenues organically by 13%.
Pre-tax profits improved from £1.24m to £1.4m and net debt was reduced to £137,000. The interim dividend was edged up from 1.2p to 1.25p a share.
The profits of the plastics business, which supplies baby and building products, fell from £440,000 to £250,000. Second half price rises should help to offset higher energy and plastic prices.
The contract manufacturing side improved its operating margin from 6.6% to 7.6%. Investment in capital equipment will help to reduce costs which are under pressure from inflationary wage rises in China.
Acquisitive activity is likely to be focused on the power supplies sector.
Brewin Dolphin has maintained its full year profit forecast at £2.8m, against £2.7m last year.
Stadium shares rose 3p to 54p, which values the company at £15.6m. The shares are trading on seven times prospective earnings for 2008.
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