Stadium Group PLC Regulatory News (SDM)

Stadium Group Plc

("Stadium" or the "Company")

Trading update

Stadium Group Plc (AIM: SDM), a leading electronic technologies group, provides the following trading update.

Recent trading is showing a further softening in demand to that indicated in our interim statement. Stadium now expects revenue and normalised profit before taxation for the second half of the year to be below those reported in the first half. Consequently, the full year results will be significantly below current market expectations.

EMS

In light of the particularly challenging conditions in the EMS business we are currently evaluating options to ensure that this area remains profitable, competitive and able to provide an improved level of service to its customers. These options include reviewing existing capacity in the UK, and reducing fixed operational costs in the UK and Asia.

Power

The Stadium Power business has continued to perform well despite the challenging market conditions and will deliver similar revenues and operating profit to that achieved during 2011.

Displays

The integration of IGT continues on track with previously announced expectations and is forecast to make a significant contribution to profits during 2013.

Update on Hong Kong building disposal

The sale of the Hong Kong building is progressing and is expected to complete before the year end; delivering a one off £3.0m cash inflow and a £2.2m exceptional profit. This is ahead of the expectations indicated at the time of the interim results.

Outlook

Our investment in Power and Display technologies together with the review of the Company's cost base, underpins the Board's confidence of an improved performance in 2013.

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