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.

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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