Stadium Group PLC Trading Update, Acquisition & Notice of Results (9588T)

TIDMSDM

RNS Number : 9588T

Stadium Group PLC

12 January 2017

Stadium Group plc

("Stadium", the "Company" or the "Group")

Trading Update, Acquisition

and Notice of Results

Stadium (AIM: SDM), a leading supplier of wireless solutions, power supplies and electronic assemblies, announces that trading for the year ended 31 December 2016 was broadly in line with market expectations.

The contribution from the Company's higher margin Technology Products businesses continued to grow in line with its expectations and this division contributed approximately 60% of total revenues for the year. The Company's forward order book has also continued to improve, with significant year-on-year growth, reflecting the effectiveness of the Company's strategy of transitioning to a design-led technology solutions business. Net debt at the year end was GBP3.5 million.

In addition, the Company announces that on 11 January 2017 it acquired the assets of Cable Power Ltd ("Cable Power"), a specialist manufacturer and distributor of bespoke cable and power products and accessories to Single Board Computing providers, for GBP0.75 million in cash. For the year ended 31 December 2016, Cable Power recorded sales of circa GBP0.7 million and profit before interest and tax of circa GBP0.1 million.

Colchester-based Cable Power's customers include RS Components, Rapid Electronics, Farnell, CPC and Raspberry Pi, with whom it has exclusivity for several accessories, including HDMI cables, power connectors and other accessory bundles. Cable Power will join Stadium's Power division, Stadium Stontronics, which announced in March 2016 that it had become the only approved external power supply manufacturer for the Raspberry Pi 3. Cable Power is an excellent fit which complements the Company's strategy to grow its design-led range of technology products.

Preliminary results for the year ended 31 December 2016 will be announced on Tuesday, 14 March 2017.

Charlie Peppiatt, Chief Executive Officer, commented:

"The acquisition of Cable Power brings complementary bolt-on products to our portfolio that enhance our overall offering, primarily in the power products space. There is a great deal of synergy between the product ranges of our power division, Stadium Stontronics, and Cable Power, and we already work closely with many of the same customers.

"Bringing together the expertise of Cable Power and Stontronics places Stadium in a unique position to offer a highly compelling exclusively approved 'one-stop-shop' solution for the Single Board Computer sector.

"The Group made further significant progress in 2016 with continuing growth in the Technology Products division. With the order book at new record levels and strategically located design centres, manufacturing centres of excellence and regional fulfilment centres in place to support its delivery, as well as the recent acquisition, we are confident about the outlook for 2017 and beyond."

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

 
Stadium Group plc                            www.stadiuminvestors.com 
Charlie Peppiatt, Chief                            Tel: [phone] 
 Executive Officer 
 
Walbrook PR              Tel: [phone] or [e-mail] 
Paul McManus                                       Mob: [phone] 
Helen Cresswell                                    Mob: [phone] 
 
N+1 Singer                                         Tel: [phone] 
Richard Lindley 
Nick Owen 
 

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 Europe and Asia. The Company consists of two divisions:

   1.    Technology Products (60% of 2016 revenues) 

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

-- Power Supplies (including Stontronics) - custom and standard power product solutions from 1W to 10kW

   --     Human Machine Interface - intelligent "HMI" integrated solutions 
   2.    Electronic Assembly (40% of 2016 revenues) - previously Electronic Manufacturing Services 
   --     Electronic manufacturing services to global original equipment manufacturers 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 12, 2017 02:00 ET (07:00 GMT)