Stadium Group warns on full year due to customer loss

23rd Jun 2016 08:08

(ShareCast News) - AIM-listed supplier of wireless solutions, Stadium Group, said its full-year results are now likely to be below market expectations as growth will be affected by the loss of a significant customer.Stadium said it has received notice from a "significant Wireless customer" in the telematics space, that, following a period of reduce call-off, they will move product design in-house and manufacturing elsewhere."The loss of this customer will result in a delay to the Company's anticipated growth and full year results for 2016 are now expected to be below market expectations. Given the seasonality within the business, in line with previous years, the board continues to expect that the company will deliver materially higher profit in the second half of the financial year."The company said the first half of the year has seen a further increase in the contribution of its higher value and higher margin Technology Products division and it continues to be encouraged by a strong order book which has already increased by 20% since the preliminary results in March.In addition, it said the recently acquired business, Stontronics, continues to perform in line with expectations.Chief executive Charlie Peppiatt said: "We are clearly disappointed to lose a significant wireless customer during the period and there's no doubt that this sets us back temporarily in terms of our ambitions for growth."Frustratingly the establishment of our new regional design centres didn't happen quickly enough for this particular customer. However, this reinforces our belief in the strategy of building strong design capabilities in the right locations and we are confident that we now have the teams in place to drive the significant growth expected in 2017 and beyond."Stadium is due to release its financial results for the six months to 30 June on 6 September.N+1 Singer said it was cutting its pre-tax profit estimate for 2016 from £5.5m to £4.3m and its estimate for 2017 from £7m to £5.8m.At 1007 BST, Stadium shares were down 29% to 78.62p.