Global Sourcing Spotlight: Tariffs—The New Reality
Knocking Down the Bone Pile: Gold Mitigation for Class 2 Electronics
Punching Out: Your Financial Preparation for a Sale
Stadium's 2015 Sales Revenue Driven by Design-led Products
March 15, 2016 | Stadium Group PlcEstimated reading time: 3 minutes
We are pleased to announce another strong set of annual results that reinforces our transformation to a leading design-led technology company.
2015 was another year of significant progress, during which Stadium continued to deliver on our strategic objective to transition from an electronic manufacturing services company to a high growth technology-led business, specialising in wireless solutions and power supplies.
The successful execution of this strategy can be seen in the increased contribution of our higher value and higher margin Technology Products division, which is made up of wireless solutions, power supplies and human machine interface (HMI) sales. This division now accounts for just over half of total revenues, compared to our financial year ended December 2013 when Technology Products accounted for 21% of total sales with electronic manufacturing services contributing 79%.
The successful growth of Stadium’s Technology Products division both organically and by acquisition has contributed to the overall performance of the Company with the improved sales mix significantly enhancing operating profit margins and normalised profit before tax. Stadium is now well placed for future growth, operating in the high growth markets of wireless solutions and power supplies.
Total revenues for the full year increased by 29% to £53.9m driven by significant growth in our Technology Products division. Other financial headlines include increased normalised operating profit margin of 8.5% and normalised profit before tax (after adjusting for non-recurring costs, amortisation of acquired intangibles and interest charged on the fair value of deferred consideration) increased to £4.0m, up 48.2% on 2014. Statutory earnings per share are 4.2p, with a final dividend proposed of 1.8p per share (2014:1.4p) and total dividends up 28.6% to 2.7p per share (2014:2.1p).
Throughout the year Stadium made a number of key investments to drive and support growth across our Technology Products division and to ensure that our manufacturing capabilities remained world-class.
We established three new regional design centres (one in China and two in the UK) and relocated our operations in South China to upgrade and enhance our manufacturing capability. Both of these strategic initiatives support the high level of growth forecasted for our Technology Products division.
In August last year Stadium completed the acquisition of Stontronics Ltd, a UK based manufacturer and distributor of power supply units, transformers and adaptors, for a maximum consideration of £6.5m. The integration of Stontronics into the Group is proceeding ahead of plans and has already generated a number of value enhancing opportunities with suppliers and customers.
The biggest contributor to the overall growth performance of Technology Products was Stadium’s Wireless business which has quickly become a cornerstone of the Group’s technology offering. The wireless market is an exciting growth space for Stadium with market intelligence suggesting strong growth in the foreseeable future.
“Berg Insight estimates that the global number of cellular M2M subscribers increased by 23 percent during 2015 to reach 265.2 million at the end of the year – corresponding to around 3 percent of all mobile subscribers. Until 2020, the number of cellular M2M subscribers is forecasted to grow at a compound annual growth rate (CAGR) of 22.9 percent to reach 744.2 million at the end of the period. During the same period, cellular M2M network revenues are forecasted to grow at a CAGR of 23.3 percent from € 8.0 billion in 2015 to approximately € 22.8 billion in 2020.” The Global M2M / IoT Communications Market – 2015 Report Berg Insight.
Charlie Peppiatt, Chief Executive Officer, Stadium Group, comments: “We continue to make positive progress as we accelerate the deployment of our strategy as a design-led technologies business and we enter 2016 stronger and better positioned for growth with our upgraded technology offering in wireless solutions, power supplies and HMI.
Our focus for the year is to continue to grow our business organically by leveraging the offering we have from our complementary electronic technologies, engineering expertise, global manufacturing footprint and skilled people. Furthermore, we will also actively identify further acquisitions that fit our strategy and further strengthen our value-add offering to our customers.
We are encouraged by the strong order book and pipeline of opportunities across the Company and early indications that the strong performance we demonstrated in 2015 will continue into 2016.”
Share on:
Suggested Items
Marcy’s Musing: The Relentless Pursuit of Perfection
05/16/2025 | Marcy LaRont -- Column: Marcy's MusingsFew things in this world are or will ever be perfect. For me, perfection might look like the vivid colors that only Mother Nature can create, the birth of a child, and the inner workings of the human brain. But all else in this physical, tangible world is, in one way or another, inherently flawed. Even the “flawless” diamond is more about the sheer awe and beauty of beholding near-perfection than perfection itself. In many ways, this truth provides great texture and diversity to our world. Yet, we still strive for perfection, and it’s in this that we learn and achieve higher heights than we otherwise would have.
I-Connect007 Editor’s Choice: Five Must-Reads for the Week
05/16/2025 | Nolan Johnson, I-Connect007My picks for the week include—as a complement to the trade agreement news—SEMI's public support of a bill including new tax credit eligibility for semiconductor manufacturers. This provision feels quite similar to the current PCB investment bill that's been introduced to the current Congress; here’s hoping Congress takes a more holistic approach to electronics manufacturing.
Join the Conversation: MESI 4.0 Summit 2025
05/15/2025 | Critical ManufacturingThe MES and Industry 4.0 International Summit 2025 (MESI 4.0 Summit), hosted by Critical Manufacturing, will bring together manufacturing leaders, technology experts, and industry pioneers in Porto on June 12-13, offering a unique platform to explore practical strategies for digital transformation and smart manufacturing.
Pluritec: Growth Depends on Developing Next-gen Products
05/15/2025 | Marcy LaRont, PCB007 MagazineMaurizio Bonati, VP of sales at Pluritec, says a new generation of products has driven strong business performance and a significant backlog. However, there’s a concern about the potential negative impact of tariffs. Pluritec is taking proactive measures to minimize these effects by focusing on enhancing equipment capabilities, automating processes, and expanding customer support.
Indian Government Establishes Panel for New National Manufacturing Mission
05/14/2025 | I-Connect007The Indian government has set up an inter-ministerial committee to design the primary plan for a new national manufacturing mission, India’s Economic Times reported on May 12.