Teesside technologies company Stadium Group holds its annual general meeting this morning.
Chief executive Charlie Peppiatt will tell shareholders that trading in the first four months of the year has been in line with expectations, and significantly ahead of the equivalent period last year.
“This improved performance is in part due to the reduced cost base following the restructuring carried out in 2013, and stronger trading, particularly in Asia and Power Products,” he will say. “Consequently, the board remains confident about prospects for the year.”
In March, the Hartlepool-headquartered company hit the acquisition trail after seeing sales rise 3% to £42.2m, driven by revenues from a firm it bought out in 2012.
The global electronics firm, which employs around 1,000 people, consists of three core business strands – power products, interface and displays, and Integrated Electronic Manufacturing Services (iEMS), the latter of which is mainly controlled from Hartlepool.
Last year revenues grew to £42.22m, a rise of 3% on 2012, taking into effect the full year of sales from the interface and displays business IGT which it acquired in September 2012.
On a like-for-like basis, sales were down by 4.4% but interface and displays grew by around 40% in the second half of the year on a comparative basis.
Restructuring changes at the group prompted the board to shelve acquisition activities in the second half of 2013 – a move it is now reversing.
Pre-tax profits fell by more than £1.3m to £430,000 for the year to December 31, 2013, a fall on the previous year’s result of £1.77m, but the business said the figures were mainly affected by restructuring costs of more than £1m.
Chairman Nick Brayshaw described 2013 as a transformational year and said the iEMS business has undergone significant organisational change both in its UK and Asia operations, following the board’s decision to close the Rugby manufacturing site at the end of 2012 and focus the iEMS business in Hartlepool. At the same time Stadium Asia consolidated its trading activities into mainland China from Hong Kong.
Several senior managers were also recruited to strengthen the leadership team during the period.