Stadium Group says it latest half-year results are in line with expectations, despite challenging economic conditions and a major organisational shake-up.
The Hartlepool-headquartered technology group has reduced its sites from seven to four, making cuts both in Asia and in the UK, where it has shut down its Rugby factory.
Half-year results for the six months to June 30 show revenue up 2.4% to £21.44m. However, on a like-for-like basis and when contributions made from the acquisition of IGT group are considered, group revenue in fact fell 8.1%
Profit before tax - adjusted for the Rugby site closure costs and the amortisation of acquired intangible assets - meanwhile, dropped from £740,000 to £370,000.
And again, excluding the impact from the IGT acquisition normalised profit before tax on a comparative basis was £200,000.
Chairman Nick Brayshaw OBE said: “Stadium has delivered a set of results for the first half of 2013 that are in line with our expectations, despite challenging economic conditions and significant organisational change.
“Although the first half of the year was materially down year on year at an operating profit level, our self-help actions are positions the group to achieve a step-change in business performance during the second half of the year and expects the last quarter of 2013 to deliver significant cost savings from the closure of the Rugby site and consolidating UK operations to Hartepool, as well as restructuring activities in Asia and elsewhere.”
Stadium, 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 is largely controlled from Hartepool site, where more than 50 extra staff, including some senior figures, have been taken on, bringing the workforce there to 166.
IGT is likewise performing strongly and new chief executive Charlie Peppiatt, who has overseen a review of the company, said it would consider further acquisitions.
Brayshaw added: “We expect a strong second half performance built on a solid order book with the interface and displays business and the book-to-bill ratio within the power products business support a much improved second half performance, which will be further enhanced by our e-commerce platform and a broader commercially offering of power products.
“Within the iEMS business, we have secured a number of contracts with new customers, albeit at lower margins, reflecting the ongoing pricing pressures prevalent in this market.”