© ermess dreamstime.com Electronics Production | July 03, 2013
Stadium: 'Rugby closure delayed by 3 months'
Trading in the first half has continued to be challenging for Stadium Group, particularly in iEMS where margins have remained under pressure.
"In order to fulfil customer orders and enable a more controlled transition to a single UK iEMS site at Hartlepool, it has been decided that the closure of the Rugby facility, previously scheduled to take place at the end of June, will be delayed by a maximum of 3 months." The trading update reads: IGT has delivered consistently positive growth since the start of 2013 and continues to trade well. The power supplies business continues to perform in line with expectations. As a consequence of the issues in the iEMS business, the Board is anticipating a more cautious outlook for the future prospects of that business in 2013 and hence the full year results for Stadium will be significantly below market expectations. The current sales run rate across the Group is in line with previous expectations and by the end of Q3 2013, once the closure of Rugby is complete, profitability for the fourth quarter and beyond is expected to be restored to a level consistent with previous market guidance.