16 November 2012 – trading update
The company has said that it expects revenue and normalised profit before taxation for the second half of the year to be below those reported in the first half. As a result of this performance for the year as a whole will be significantly below current market expectations. Options for the EMS business, which is of specific concern, include reviewing existing capacity in the UK and reducing fixed operational costs in the UK and Asia.
Power
The 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. The sale of the Hong Kong building is expected to complete before the year end and this should deliver a one off £3.0m cash inflow and £2.2m exceptional profit. Clearly the update is downbeat and the resultant share price slump was inevitable but at the current level we see value and maintain our BUY rating.