Shares in Stadium dropped over 24 per cent on Friday after the electronic technologies group warned its full year results will be significantly below current market expectations.
The firm said recent trading has shown a further softening in demand, and as a result the group now expects revenue and normalised profit before taxation for the second half of the year to be below those reported in the first half.
In a statement the company said: "In light of the particularly challenging conditions in the EMS business we are currently evaluating options to ensure that this area remains profitable, competitive and able to provide an improved level of service to its customers. These options include reviewing existing capacity in the UK, and reducing fixed operational costs in the UK and Asia.
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"Our investment in Power and Display technologies together with the review of the company's cost base, underpins the board's confidence of an improved performance in 2013."
The company also said that its Stadium Power business has continued to perform well despite the challenging market conditions and will deliver similar revenues and operating profit to that achieved during 2011.
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