Power and electronics manufacturing firm Stadium has been hit a by a lack of demand from customers spooked by the global economic crisis.
Revenues for the six months to the end of June were £20.93m, down from the £23.2m reported at the same stage last year, while adjusted profit before tax came in at £0.74m against £1.45m in the prior year.
Earnings per share has more than halved to 1.4p from 3.9p but the interim dividend has been maintained at 1.05p.
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The firm is clear about what's going wrong: the customers for whom it makes electric products simply don't want the stock on their books.
The group's Chairman, Nick Brayshaw, said: "Unlike 2009 when demand, and the visibility of future demand, evaporated almost overnight as de-stocking occurred, the last nine months have seen a slow, steady decline in demand as customers slowly lose confidence in the economic recovery and restrict their supply chain in anticipation of a downturn in their end markets."
This process has led to a slowdown of up to 25% in the key Electronic Manufacturing Services division and explains why the stock fell 11.3% in morning trading.
BS
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