Stadium profits up, cautious on UK economy

9th Mar 2011 09:08

Electronics manufacturing group Stadium posted a sharp rise in profits from continuing activities in the year to 31 December, but is cautious about economic conditions in the UK.Pre-tax profits jumped by 95% from the previous year to £2.9m and revenues were up by 27% to £44.8m.Stadium also announced the departure of chief executive Nigel Rogers, who oversaw the sale of the plastics business last year. Chairman Nick Brayshaw will act as chief executive until a replacement is found.Growth in 2010 was fastest outside Britain, with the overseas market now accounting for almost half of revenues. Sales rose by 21% to £25m in Britain, by 46% to £8m in Asia Pacific, by 32% to £6.7m in the rest of Europe and by 28% to £5.07m in the Americas.Stadium operates manufacturing facilities in Hartlepool, Rugby and China and covers sectors such as green technology and transport. Its UK manufacturing is concentrated on the domestic market.Stadium said that, while it experienced a sustained recovery during 2010, underlying demand has yet to return to previous levels. Speaking about the British market, Brayshaw said: "The after effects of the credit crisis continue to influence the spending and investment patterns of consumers, companies and indeed the public sector."Given the public spending outlook in the UK, Stadium looks likely to struggle to repeat the growth seen in one of its fastest growing areas last year. Revenues from security, safety and lighting were up by 88% to £7.49m, but half of the growth came from a one-off lighting contract with the Highways Agency.Following the disposal of the plastics business, Stadium has firepower to make acquisitions. Speaking at the results presentation Brayshaw said the company would consider expanding manufacturing activities into an east European market such as the Czech Republic, which would give it good access to the German market.