Stadium Group announces marked recovery in H1 results

Stadium Group Plc (LON:SDM) , the Hartlepool based provider of electronic manufacturing services (EMS), announced interim results through 30 June 2010, posting a strong recovery in revenues and profitability vs. H1 2009.  Overall sales were up 37% to £23.1 million as OEMs in both the UK and Asia returned to more normal buying patterns.  The company reported that about half of the increase was due to the market recovery, with the balance originating from new business.  New business in manufacturing contracts related to industrial control products and "green" technologies such as smart water/power meters and LED lighting was especially encouraging. Operating margins for H1 2010 exceeded pre-crisis 2008 year end levels by 1% - increasing to 7.5%. The company is now expected to broadly meet FY 2010 market expectations for sales and profitability despite the sale of its Branded Plastics division earlier in the year.  The company's broker currently expects sales of £44.7 million, PBT of £2.7 million (excluding exceptionals and amortisation of goodwill) and an EPS of 7.2p for the year to December 2010.