Stadium Group – 49p

6 February 2013 – strategic review

The group has completed its strategic review of its UK EMS operations and has decided to close its manufacturing facility at Rugby and transfer production to Hartlepool and Asia.  This will improve its competitiveness in the EMS market.  The costs of the closure will be largely provided for in the 2012 results with the balance falling this year.  These costs should be recovered in lower operating costs in 2013 and 2014.  The shares have dropped back on the news but we think that they are worth picking up under 50p and rate the stock as a BUY.

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