Stadium Group, the contract electronics engineering and manufacturing company, announced in an update regarding the final results to December 2011 that the operating profit will be below current market expectations, whilst pre-tax profit will be materially ahead of expectations.
The reduced operating profit is due to a combination of some short term delays in customers' product shipments and adverse mix effects in the EMS division, and investment in key personnel in the UK and in Asia to strengthen the platform for growth. Pre-tax profit is benefiting from a reduction in the group's pension liabilities.
The board anticipates paying a dividend for the year in line with market expectations. Opportunities for organic growth are regarded by the board as considerable.
The SDM share price has decreased by 4% over the past year.
Stadium Group Plc is graded B by LCF Research. To learn more, follow the link.
