Stadium Group PLC Regulatory News (SDM)

22 Apr 2009 11:00



Stadium Group Plc

Trading update

Stadium Group plc, the AIM listed provider of Electronic Manufacturing Services, is holding its Annual General Meeting today at 11am at the offices of Brewin Dolphin, 12 Smithfield Street, London, EC1A 4BD. At the meeting the company will provide the following update on trading:

Trading conditions continue to be challenging, with aggregate revenue during the first quarter of 2009 lower than the corresponding period last year.

The effect on profits has been partially mitigated by headcount and other cost reductions, incurring one-off redundancy costs of approximately £0.14m during the quarter. In addition, temporary measures to contain personnel costs for the remainder of the first half of the year have been implemented. 

Operating profits, together with continued close control of working capital and capital expenditure, have contributed to positive cash generation and a reduction in net bank borrowings during the first quarter. 

As outlined in the preliminary announcement, proposals to significantly reduce the ongoing level of pension deficit contributions have now been agreed with the trustees, and the reduced level will continue until April 2010 before further review.

Despite the current challenging environment, significant new business wins have already been secured for the second half of the year, and the financial and operating strength of the business is expected to contribute to further gains in market share as the year progresses.

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