Electronics Production | November 07, 2011
Stadium Group 'ahead of expectations'
Stadium Group Plc has provided a trading update, stating that 2011 results will be ahead of market expectations.
Stadium stated that results for 2011 will be significantly ahead of market expectations as a consequence of a reduction in the Group’s pension liabilities following a series of one‐off benefits. This forecast increase will be partially offset at a trading level due to a number of factors, the company said. Although they are achieving better than expected performance in the Power Supply business, the company is experiencing short term delays in customers’ product call‐off, and adverse mix effects in the EMS Division. Continued investment in key personnel in both the commercial and operations teams in the UK and in Asia has also contributed to increased costs in the second half of the year. Because of these factors, the company said that operating profits for the year ending 31 December 2011 will be below current market expectations, whilst reported Group Profit before tax will be materially ahead of expectations.