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I've held SDM for about ten years. The only problem is that they are such a reliable company with a nice dividend that I tend not to pay them any attention. I certainly can't disagree with the IC's "buy" recomendation; I'm up 25% on purchase price!
Stadium Group said sales in the first half were below last year due to the underlying economic environment and the impact of the company's decision to withdraw from a number of low margin legacy contracts. However, it said this had been partially offset by a number of important new business wins and continuing cost reduction activity. It added that the firm was pursuing a number of potential acquisitions.
Good to see this lot are hitting their expectations. Be interesting to see the effect of the worldwide ban on filament lamp production
Trading update Stadium Group Plc (AIM: SDM), a leading electronic technologies group, provides the following pre-close trading update for the six months ended 30 June 2012. Trading for the six months ended 30 June 2012 was broadly in line with the expectations outlined in the recent AGM statement. As anticipated, sales were below that reported for the same period last year due to the underlying economic environment and the impact of the Company's decision to withdraw from a number of low margin legacy contracts. The consequent impact upon profits has been partially offset by a number of important new business wins and continuing cost reduction activity. We expect the second half of 2012 to see the full benefit of H1 business wins and further progress with operational improvements in overheads, factory efficiency and most significantly in procurement; taken together, substantially offsetting the impact of any reduced underlying revenues. In addition the Company is currently undertaking pre-production trials for two significant contracts for programmes that are planned to commence in Q4 of 2012. The outcome of these trials will be known in Q3. The Company also continues to pursue a number of potential acquisitions that complement the current activities which should enhance shareholder value over the medium-term. Stadium will announce its financial results for the six months ended 30 June 2012 on Tuesday, 4 September 2012.
http://www.investegate.co.uk/Article.aspx?id=201207050700059468G
Surprised to see this recommended as a buy by one of the Money Week stable. Nice to know its getting some recognition at last. The basis of the advice was that it produces equipment for use in LED lighting which as any holder of Dialight knows is doing very nicely. SDM has a very nice and regular dividend too. What more can we ask
"Notwithstanding current, soft market conditions, we continue to see significant medium term growth potential in the group, both organic and acquisitive, as management begins to deliver on the new strategy. We retain our 96p price target and Buy recommendation," the broker said. Daniel Stewart is also standing pat with its 2012 forecast of profit before tax of £3.2m and its "buy" recommendation. On the target price, it is even more upbeat than the house broker, with a 12-month projection of 125p.
Taking the "glass half full" approach, house broker N+1 Brewin said the update "confirms that the current year will be strongly second half weighted (we now estimate in the region of 25:75) as recent operational initiatives and new business wins begin to contribute." The broker has reduced its sales forecasts for fiscal 2012 and 2013 by around £2m in both cases to reflect the phasing out of lower margin legacy contracts. N+1 Brewin expects the impact on profitability to be offset by the cost saving measures outlined by management, so its headline earnings forecasts for this year and next remain unchanged.
Electronics group, Stadium issued a profits warning today ahead of its annual general meeting (AGM). The company said weak demand for its electronics manufacturing business would continue throughout the year. It added a number of "legacy contracts with poor margins are being phased out, or renegotiated to secure better margins". The basic message was made crystal clear by the statement "first half trading will be lower than the equivalent period last year"
Profits warning in the light of lower demand for electronics. Doom and gloom time again!! :((
to see a nice rise on here today. Glad this company is doing so well.
Like your post have recommended as a good one. Cheers mate.
Stadium is unlikely to see its revenues soar in 2012, but better margins should help underlying profits move ahead sharply (2011's profits were flattered by one-off accounting items). According to analysts at broker N+1 Brewin, this should result in EPS rising from 6.4p in 2011 to 9.3p this year and 10.4p in 2013. This means Stadium's shares are trading on an earnings multiple of just under eight times for 2012, falling to seven times for 2013. The decent dividend yield on a payout comfortably covered by earnings is nice, too. For shares in a manufacturing business with decent growth prospects driven by experienced bosses, it's a serious proposition. Buy.
With a decent cash backing, helped by the sale of a property in 2011, Stadium's management is also considering acquisitions to accelerate the group's transformation into a provider of niche electronic technologies offering outsourced manufacturing to original-equipment makers. True, acquisitions will bring the risk of failure, but they can also accelerate earnings growth. Given its nature, Stadium is sensitive to changes in the global economy, as illustrated by its softer sales growth towards the end of 2011. But the new management team has set about delivering self-help, which should help profit margins. A beefed-up sales team and focus on new markets should also bring in fresh customers, reducing the risk of relying on a few big ones. This bodes well, particularly for the second half of 2012 and beyond
Results from Stadium, which provides design and building services for electronics and power supply manufacturers, show that 2011 was a year of consolidation and stabilisation. Its new bosses have improved the efficiency of the business and focused it on growth markets so it's now set to move forward. In September, Stadium brought in a new chief executive, Stephen Phipson, from Smiths Group, where he was in charge of the Detection and Interconnect divisions; when he left the Detection business its annual revenues were £600m. Mr Phipson has brought in Charlie Peppiatt, who ran a £250m turnover division at Laird, as operations director. Mr Peppiatt has experience of operating in Asia, having been responsible for eight manufacturing locations at Laird, so a big task will be to ensure Stadium better exploits its factory in China. As well as adding more sales staff, the new management team has identified operational improvements. These include introducing centralised buying, cutting overheads and improving efficiencies in its plants, which should benefit performance as 2012 progresses. Overall revenues in 2011 were flat, but pre-tax profits rose by 38 per cent as the higher-margin Power business continued to grow quickly. Demand in the electronics manufacturing services business slowed during the second half, particularly in the UK and Europe as some of Stadium's customers hunkered down in anticipation of renewed recession. Subdued demand has continued in the early months of 2012, but it is being offset by new business wins and opportunities in markets such as LED lighting, medical products and clean technology. And the Power business, which provides standard and customised power-supply products, is performing well, having grown its operating profit by 50 per cent in 2011 to £1.2m.
today see's a decent SP increase for this electronics firm. Good RNS shows a f/wd thinking company, the only downside being China's wage increases which will shake the profit a bit. Stadium have a number of employees working in China. Well worth a punt on here still. Broker recommends as a Buy.
Daniel Stewart maintained its "buy" rating for Stadium Group (SDM) with a target price of 123p. The electronics firm will release its full year results for the year ended 31st December 2011 on 7th March and the broker forecasts pre-tax profits of 2.1 million pounds, on revenues of 44.9 million pounds. Daniel Stewart noted that despite the company's small scale it is already delivering impressive margins, with a target of between 8% and 10% in 2013. The broker expects this to be achieved through cost reduction following a review of supply chains and reorganisation of the UK assembly structure.
Daniel Stewart initiated coverage of Stadium Group (SDM) with a "buy" recommendation and 123p target price. The broker says that the electronics company has successfully reorganised its UK business, following the appointment of new chief executive Stephen Phipson in September 2011. Daniel Stewart also notes the group's strong presence in China, with over 1,000 employees. Shares in Stadium dropped 1.5p to 64.5p.
Growth Company Investor recommended shares in Stadium this April at 72p and the shares have since slipped to 67p. The company has finally found the CEO it had been hunting to replace previous leader Nigel Rogers. The business has strong exposure to Asian markets with a small debt position for a company of its size. With European consumer spending weakening, its Asian connections represent a key strength for the group. We retain our buy rating.
Stadium Group BUY 14/09/2011 Ben Jaglom Manufacturing services provider Stadium Group (SDM) reported a 9% increase in pre-tax profits amid an increase in demand from Asia. The Hartlepool-headquartered business announced profits of £1.58m on sales of £23.2m (2010: £23.1m) over the six months to June. EPS remained at 3.9p, while net cash increased from £1.67m to £3.7m. The interim dividend rose 10.5% to 1.05p. The company recently announced the appointment of new chief executive officer Stephen Phipson six days prior to the interims, having joined from technology giant Smiths Group, where he worked as the president of its detection division. In an interview with Growth Company Investor he enthused that he has 'spent his whole life in the electronics industry' and would look forward to helping a company that is 'only operating at 50 per cent of its assets and yet is already profitable'. With a number of manufacturing operations, Stadium has a considerable presence in China and Phipson remarks that the company, 'like all manufacturing businesses in Asia, wants to move into higher-value work', noting that the company would be looking at 'moving up our speed at finding new business in the region'. Analysts at house broker Brewin Dolphin are forecasting pre-tax profits of £3m (EPS: 7.1p) on sales of £48.5m for the year to December 2011. In 2012 profits of £3.3m (EPS: 8.8p) on revenues of £51.7m are expected.
Looks to be an interesting high profile appointment - lets hope it can help get the share price moving in due course!
Stadium is involved in a broad spread of electronic goods, but the fastest-growing areas are industrial and automotive, medical devices, security, safety items and green energy products. Stadium Group shares are 651/2p, but management is determined to expand further. A new chief executive is likely to be in place by the summer. Buy says the Mail on Sunday.
Commenting on outlook, Chairman Nick Brayshaw OBE said, "We remain optimistic that continued growth will be achieved from existing products and customers, and will continue to win new business to increase our market share as the key to future success. The company now has a clear focus on core electronics activities, and a strategy has been set out to continue to deliver strong organic growth. This is driven by the delivery of premium manufacturing and engineering services to a base of long term business partners. The goal is now to become acknowledged as the leading UK owned provider of electronic design and build solutions, by continuing to target new customers across the world in high growth industry sectors. The company has the financial resources available to invest in the people, processes and technology required to deliver further progress towards this goal during 2011 and beyond."
Other highlights · Disposal of non-core plastics business in June 2010 is the final stage of group reorganisation started in 2001 · New focus on core provision of electronic design and build solutions · Chief Executive, Nigel Rogers, will not stand for re-election at AGM in April · Nick Brayshaw to become Executive Chairman and acting CEO until appointment of new Chief Executive · New Chief Executive to be appointed to drive growth in the business
Financial highlights · Revenues* up by 27% to £44.81m (2009: £35.30m) · Profit before taxation* up by 95% to £2.87m (2009: £1.47m) · Underlying earnings per share* up by 60% to 6.7 pence (2009: 4.2 pence) · Balance sheet net cash of £1.67m (2009: £0.40m) · Sale of surplus freehold property (NBV £2.04m) progressing well · Total dividends (paid and proposed) up 11% to 2.50 pence per share (2009: 2.25 pence)