Stadium Group PLC Regulatory News (SDM)

30 Nov 2005 11:54

Stadium Group PLC30 November 2005 Stadium Group Plc Trading update 30 November 2005 Stadium Group Plc, the AIM listed provider of Electronic Manufacturing Services,will brief analysts today on the outlook for 2006. Full year results for 2005 are expected to be broadly in line with currentmarket expectation. We are, however, taking a more cautious view of growthprospects for 2006 in view of a tough trading climate. In September 2005 the company reported interim results for the six months to 30June 2005 which were 34% ahead of prior year, and noted that trading conditionswere becoming more challenging. During the year, there have been significantincreases in the cost of many basic resources. Plastics and metals haveincreased by more than 20% and energy by almost 40%. These factors, togetherwith increases in operating costs, have placed customer margins under sustainedpressure. We are continuing to deliver turnover growth from new business in the secondhalf, and have increased focus on operational efficiency and cost downactivities to substantially offset any impact in the current year. The rate of sales growth is expected to show further improvement during 2006,and we remain confident of our ability to win new business. This activity will,however, be undertaken in an increasingly competitive environment, and this isexpected to have an adverse impact on operating margin in 2006. Stadium Group Plc continue to develop higher added value services, in whichdesign, intellectual property and complex supply chain management solutionsoffer opportunities for enhanced profitability. Contacts: Stadium Group PlcNigel Rogers, Chief ExecutiveTel 01429 852520Mob 07767 603362 Binns Financial PR LtdPaul McManusTel 020 7153 1483Mobile 07980 541893 This information is provided by RNS The company news service from the London Stock Exchange