Member Article

Customer delays impact pretax profit expectations for Hartlepool electronics plc

Hartlepool-based Stadium Group has revealed it expects to report a year-on-year increase in revenues of 15% to £61m when it announces its financial results at the end of the year although the electronics manufacturer is predicting lower pretax profits than first envisaged.

Releasing a trading update this morning, the firm says it expects single digit percentage growth in normalised profit before tax.

This would be below current market expectations, due to customer delays into 2018 for certain higher margin Technology Products projects - originally expected to ship before the year end.

The widely reported global shortage of certain electronic components, particularly memory, integrated circuitry and passive components, has compounded the situation through increased cost pressures.

The firm has attempted to relieve cost pressures by undertaking additional Electronic Assembly sales although the situation looks likely to nonetheless increase net debt for the firm by the end of the year.

The business, however, is enjoying continued growth in its order book, which currently exceeds £32m, a new record level for the Group (up from £25.8m at 31 December 2016).

Stadium will announce its financial results for the year ended 31 December 2017 on Tuesday, 13 March 2018.