GROUP PLC
Annual Report
70011 COVER NEW  17/3/07  6:58 am  Page 2 Year in brief 1
Group at a glance 3
Board of directors 4
Chairman’s statement 5
Chief Executive’s review 6
Directors’ report 8
Corporate governance 11
Remuneration report 13
Independent auditors’ report 15
Consolidated profit and loss account 16
Balance sheets 17
Consolidated cash flow statement 18
Accounting policy statement 20
Notes to the accounts 22
5 year financial summary 35
Notice of AGM 36
Corporate directory 40
Contents
Our products and assemblies are used by some of the world’s leading brands in consumer,
industrial and automotive sectors.
Registered in England No: 236394            
globally competitive manufacturing solutions
STADIUM GROUP PLC
70011 COVER NEW  17/3/07  6:59 am  Page 3 STADIUM GROUP PLC
1 Annual Report and Accounts 2006
● Turnover up 6% to £38.55m (2005: £36.52m)
● Profits before tax £2.35m (2005: £2.64m)
● Earnings per share 7 .0p (2005: 7 .6p)
● Underlying profits unchanged at constant currency rates
● Adjusted PBT , adjusted earnings and operating cash flow 
improved in second half over first
● Stadium Power acquisition of KRP contributing ahead of plan
● Total dividend up 3% to 3.6 pence (2005: 3.5 pence)
Summarised results
2006 2005
£m £m
Group turnover
Asia 21 .3 20.2
UK 17 .3 16.3
–––––– ––––––
Total 38.6 36.5
–––––– ––––––
–––––– ––––––
Adjusted PBT* 2.16 2.60
Goodwill amortisation (0.15) (0.13)
Exceptional items 0.34 0.17
–––––– ––––––
Reported PBT 2.35 2.64
–––––– ––––––
Pence Pence
Adjusted EPS* 6.3 7 .6
Goodwill amortisation (0.5) (0.5)
Exceptional items 1.2 0.5
–––––– ––––––
Reported EPS 7 .0 7 .6
–––––– ––––––
Dividend per share 3.60 3.50
–––––– ––––––
*denotes before goodwill amortisation and exceptional items
Year in brief
70011 PRE NEW  17/3/07  7:00 am  Page 1 STADIUM GROUP PLC
world class technology and service
Annual Report and Accounts 2006 2
70011 PRE NEW  17/3/07  7:00 am  Page 2 STADIUM GROUP PLC
Electronics – UK operations
Stadium Electronics offers high quality electronic
manufacturing services from its site at Hartlepool
in North East England.
A dedicated engineering team provides comprehensive
design and build-to-print support services, together 
with production engineering, quality and test 
equipment origination.
Customers benefit from full turnkey project
management support from concept to delivery.
Electronics – Stadium Power
Stadium Power designs and manufactures custom and
standard switch mode power supplies and associated
power products.
As one of the UK’s leading power solution 
providers, we have a fully comprehensive range 
of products available including AC-DC Converters, 
DC-DC Converters, DC-AC Inverters, UPS’s,
Programmable Switch Mode Power Supplies (SMPS),
Euro Cassettes, Battery Chargers, Transformers, 
Plugtop and Desktop Power Supplies.
Electronics – Asia operations
Stadium Asia comprises a design and commercial
centre based in Hong Kong, and a high volume
production facility at Chang Ping City in the Guangdong
Province of the Peoples’ Republic of China.
The business is delivering high rates of growth in the
provision of electronic manufacturing services (EMS) to
worldwide customers covering consumer, industrial 
and automotive applications.
Our factory includes the following capabilities:
● Product design and engineering services
● Worldwide product approval
● Automatic PCB component insertion and surface
mount placement
● Transformer winding
● Injection moulding and over-moulding
● Screen and pad printing
● Final product assembly and testing
● Logistics and world wide shipping
The factory operates to the highest international
standards including UL, ISO9000: 2001, CE and
SEMKO. The factory is accredited as a TS16949
approved facility for the supply of automotive
assemblies.
world class technology and service
3 Annual Report and Accounts 2006
70011 PRE NEW  17/3/07  7:00 am  Page 3 Executive Directors
Nigel Rogers FCA – Chief Executive (Nominations Committee)
Chartered Accountant. Aged 45, joined Stadium in 1993 as Group Finance Director. Responsible for UK Electronics
operations from 1998 until appointed Chief Executive in March 2001.
Kamal V erma – Managing Director – Electronics
Aged 57 , joined Stadium in 1985. He holds a First Class honours degree in Applied Physics from the University of
Aston, Birmingham. Has led the development of Stadium Electronics operations since his appointment as Managing
Director – Electronics in 1989.
Ken Leung – Managing Director – Stadium Asia
Aged 54, and based in Hong Kong. He holds a degree in Industrial Engineering from the University of Hong Kong.
Joined Stadium on the acquisition of Arlec Power (now Stadium Asia) in March 2000. Appointed to the board as
Managing Director – Stadium Asia on 1 January 2003.
Non-executive Directors
Nick Brayshaw – Chairman (Audit, Remuneration and Nominations Committees)
Aged 51 was appointed as a Non-executive Director in April 2005 and Chairman in April 2006. He began his career 
with Rio Tinto plc and Caradon plc, before becoming Group Chief Executive of Wagon plc until March 2004.
He is an independent member of the Business and Innovation Group Board of the Department of Trade and Industry,
and non-executive Chairman UK manufacturing, Barclays Bank plc. He is also Chairman of the CBI Manufacturing
Council.
Chris Gill ACA – Senior Independent Director (Audit, Remuneration and Nomination Committees)
Chartered Accountant. Aged 44 was appointed as a Non-executive Director in April 2006 and is Chairman of the 
Audit Committee. He is also a member of the North of England Industrial Development Board.
Company Secretary
Colin Wilson ACA 
Chartered Accountant. Aged 39 joined Stadium in April 2006 as Financial Manager from ICI Uniqema, and appointed 
as Company Secretary in December 2006.
STADIUM GROUP PLC
Directors
123456
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Annual Report and Accounts 2006 4
70011 PRE NEW  17/3/07  7:00 am  Page 4 Introduction
I am pleased to report improved
results in the second half of the
year and satisfactory full year 
results for the year ended 
31 December 2006.
The business has delivered 
further sales growth, and margins
are recovering after a period of
turbulence arising from increasing
commodity prices. 
Management have successfully
completed the first acquisition since
the Strategic Review in 2001, and
the business is well placed to make
further progress in 2007 . 
Results
As anticipated, profit before 
taxation reduced by 11% to £2.35m
(2005: £2.64m), although it should
be noted that much of this reduction
is attributable to the translation 
of dollar earnings at a weaker
exchange rate.
Earnings before exceptional items
and goodwill amortisation of 6.3p
were slightly ahead of market
expectation, although down by 
17% compared with 2005 (7 .6p).
Reported earnings, which reflect the
exceptional gain on sale of freehold
property, were 7 .0p (2005: 7 .6p).
Net cash inflow from operating
activities increased by 42% to
£0.85m (2005: £0.60m). Net bank
borrowings increased during the
year from £2.06m to £4.38m
reflecting investment in the
relocation of our office premises in
Hong Kong and also the acquisition
of KRP Power Source (UK) Limited
in August. 
Dividends
The Board proposes a final 
dividend of 2.45 pence per share
(2005: 2.4 pence) to be paid on 
8 May 2007 to shareholders on the
register on 13 April 2007 . This brings
the total dividends for the year to
3.6 pence per share, an increase 
of 3% over the prior year (3.5 pence
per share), which is covered by
earnings 1.9 times (2005: 2.2 times).
Company Secretary
David Collins retired as Company
Secretary on 31 December 2006
after more than twenty years 
of service to the company. 
Colin Wilson ACA was appointed 
as Group Financial Controller in 
April 2006, and assumed
responsibility as Company Secretary
upon David Collins’ retirement.
Prospects 
Following four years of profit
growth, the company has
demonstrated some resilience in
recovering from the challenging
market conditions prevalent in 
the first half of 2006. During the
second half of the year a turning
point was reached, with sales,
margins and operating cash flow 
all showing improvement. We look
forward with confidence to further
organic growth, and will continue 
to seek to augment this with
suitable acquisitions when
appropriate opportunities arise.
Nick Brayshaw
Chairman
26 February 2007
STADIUM GROUP PLC
5 Annual Report and Accounts 2006
Chairman’s statement
covering the year ended 31 December 2006
70011 PRE NEW  17/3/07  7:00 am  Page 5 STADIUM GROUP PLC
Annual Report and Accounts 2006 6
Chief Executive’s review
Covering the year ended 31 December 2006
Overview
The business has reported
satisfactory results in view of the
underlying market conditions, and
enters 2007 with a positive outlook.
Financial results
Turnover increased 6% to £38.55m
(2005: £36.52m), with similar rates
of growth across both Electronics
and Plastics, and both in Asia and
the UK.
Operating profit reduced as
expected by 12% to £2.28m 
(2005: £2.60m). This was a
reflection of the more challenging
trading conditions prevailing for
much of the year, and especially 
the first half. In particular, material,
energy and operating costs
increased sharply, leading to
pressure on margins until their
effect could be fully reflected 
in selling prices. 
Notwithstanding these pressures,
reported profits would have been
virtually unchanged at constant rates
of exchange, the effect of which are
explained below. 
Profit before taxation decreased by
11% to £2.35m (2005: £2.64m), or
by 17% to £2.16m (2005: £2.60m)
before adjusting for exceptional
items and goodwill amortisation. The
exceptional gain related to the sale
of freehold property in Hong Kong
arising on the relocation of Stadium
Asia office premises amounting to
£0.34m (2005: sale of surplus UK
freehold property of £0.33m).
Reported earnings per share were
7 .0 pence, a decrease of 8% 
on last year (2005: 7 .6 pence). 
Earnings before exceptional gains
and goodwill amortisation were 
6.3 pence (2005: 7 .6 pence).
Effects of foreign currency
exchange rates
During the year the United States
dollar weakened against Sterling by
approximately 15% and ended the
year at the lowest level for many
years. The translation effect of these
movements reduced reported sales
by £1 .49m (4%), profit before taxation
by £0.14m (6%) and net assets by
£0.89m (11%) when compared with
the opening rate of exchange.
Furthermore, the Chinese Yuan has
appreciated by a further 5% during
the year against the United States
Dollar, adding approximately £0.2m
to operating costs in China.
Electronics
Sales overall grew by 6% to
£27 .96m and it was especially
satisfying to experience a return 
to growth in our UK operations.
Automotive volumes continued 
to decline as expected, although
significant new business has been
awarded that will enter production
during 2007 .
Our phased withdrawal from the
telecom market was completed
during the first half of the year,
without incurring significant exit
costs, and we do not anticipate
further activity in this sector. 
Strong growth was experienced in
consumer markets and there are
further substantial opportunities in
the pipeline.
Material prices, which increased
rapidly throughout the first half of
the year, were more stable in the
second half. Most major customers
have now accepted price increases
to reflect new economics, although
some marginal business was
sacrificed where such increases
could not be achieved.
Our goal remains to work with
substantial long term partners who
recognise the value of quality,
service and reliability when
executing sourcing decisions.
Whilst operating margin for the full
year reduced by 1.5% to 6.7%, the
performance in the second half
(7 .3%) marked a recovery from the
6.1% reported at the interim stage.
Stadium Power contributed more
than £3.3m of sales, including
£0.4m from the acquisition of 
KRP Power Source (UK) Ltd on 
30 August 2006. Growth was less
than expected as a result of
technology changes in the gaming
machine sector resulting in lower
demand for hardware. Development
of a range of industry standard
items for manufacture by Stadium
Asia and distribution through
Stadium Power and KRP will 
be completed during 2007 . 
2006 2005
£’000 £’000
Turnover
– Asia 21,262 20,228
– UK 6,693 6,227
27 ,955 26,455
Operating profit 1,873 2,173
70011 PRE NEW  17/3/07  7:00 am  Page 6 Growth in sales was attributable to
new product launches and additional
market share won by Stadium
Building Products.
Profits were virtually unchanged; 
a commendable performance when
taking into account the substantial
increases in material and energy
costs incurred during the year.
Balance sheet and cash flow
Cash flow from operations
amounted to £0.85m, stated after
meeting pension deficit funding
contributions of £1.09m (2005: net
inflow of £0.60m after pension
contributions of £1.24m).
Net cash outflow on fixed assets 
of £1.00m included the relocation 
of the Hong Kong office of Stadium
Asia Limited at a net cost of £0.2m.
There was further investment in
manufacturing plant and equipment
in Asia and the UK totalling £0.80m,
slightly ahead of the corresponding
depreciation charge.
The acquisition of KRP Power
Source (UK) Limited was completed
on 30 August 2006 at a total 
cost of £0.57m. This additional
investment in the business was
funded by drawing down net bank
loans of £2.70m, and resulted in
year end borrowings of £4.38m
(2005: £2.06m).
Pensions
The market value of the pension
scheme assets increased by 11%
during the year to exceed £22m. 
The net pension liability, measured
on a basis consistent with that 
used in the prior year, would 
have reduced from £4.86m to
approximately £3.0m. The directors,
in consultation with the scheme
actuary, have recognised more
recent guidance on expected
mortality rates. The effect of this
new guidance has resulted in 
an 8% increase to the scheme
liabilities before deferred tax
amounting to £2.04m, and a net
pension liability of £4.45m.
Acquisitions
During the year we completed 
the acquisition of KRP Power 
Source (UK) Limited for net cash
consideration of £0.57m. Since
completion on 30 August 2006 
the business has performed 
slightly ahead of our expectations
contributing an operating profit
(before goodwill amortisation) 
of £0.06m.
Further acquisition activity, focused
particularly on businesses with
product design, marketing and
distribution capabilities, remains 
a priority. 
Outlook
Current trading is ahead of the
corresponding period last year 
and the immediate outlook 
is encouraging.
We anticipate growth in revenues
and a further recovery in margins 
in 2007 , although sustained dollar
weakness against both Sterling 
and the Chinese Yuan may offset
the full effect of this improvement 
in reported earnings.
Nigel Rogers
Chief Executive
26 February 2007
STADIUM GROUP PLC
7 Annual Report and Accounts 2006
2006 2005
£’000 £’000
Turnover 10,597 10,060
Operating profit 848 871
Plastics
70011 PRE NEW  17/3/07  7:00 am  Page 7 STADIUM GROUP PLC
Annual Report and Accounts 2006 8
Directors’ report
STADIUM GROUP plc
The directors present their report and the
audited financial statements for the year
ended 31 December 2006.
Principal activities
The principal activities of the Group are 
the manufacture and sale of electronic
assemblies, and plastic mouldings.
Results and dividends
The results for the year are set out in the
consolidated profit and loss account on 
page 16. A review of the activities, results
and future development of the Group is
given in the Chairman’s statement on 
page 5, and the Chief Executive’s review on
pages 6 and 7 .
An interim dividend of 1.15 pence 
(2005: 1.1 pence) per ordinary share
amounting to £331,000 (2005: £315,000)
was paid on 2 October 2006. The directors
recommend payment of a final dividend of 
2.45 pence (2005: 2.4 pence) per share
amounting to £706,000 (2004: £687 ,000).
Directors and directors’ interests
The directors of the Company during the year and their interests in the ordinary share capital
at the beginning and the end of the year, (or date of appointment or retirement – all beneficial,
and including related family interests) were as follows:
Ordinary Shares of 5p each
31 Dec Family Options 31 Dec
2006 Acquired transfers exercised 2005
Nick Brayshaw 20,000 – – – 20,000
Chris Gill
(appointed 20 April 2006) 20,000 20,000 – – –
Ken Leung 240,400 50,000 – – 190,400
Nigel Rogers 289,055 – – 80,000 209,055
Kamal Verma 393,637 – (60,000) 60,000 393,637
Struan Wiley 
(retired 20 April 2006) 22,833 – – – 22,833
Entitlements of the directors at 31 December 2006 to purchase ordinary shares of 5p each
under the share option schemes in Note 17 to the accounts, were as follows:
1996 Executive Share Option Scheme
Granted Granted
31 Dec 02 4 April 05
Exercise price 35p 85.5p
Ken Leung 470,200 37 ,500
Nigel Rogers 470,200 37 ,500
Kamal Verma 470,200 37 ,500
On 23 March 2006, Nigel Rogers and Kamal Verma exercised 140,000 options granted on 
18 April 2002 at a price of 35 pence each. At that date the quoted share price was 65 pence
resulting in gains of £24,000, and £18,000 respectively.
On 7 June 2005 Ken Leung exercised 25,000 options granted on 18 April 2002 at a price 
of 35 pence each. At that date the quoted share price was 81 pence resulting in a gain 
of £11,500.
70011 PRE NEW  17/3/07  7:00 am  Page 8 The market price of ordinary shares at 
31 December 2006 was 59.5p, and the 
shares traded in the range 56p to 71p 
during the year. 
Full details of directors’ shareholdings and
options to subscribe are recorded in the
Register of Directors’ Interests, which is
open to inspection by members. 
Authority to purchase own shares
A resolution renewing the Company
authority to purchase its own issued ordinary
shares of 5 pence each will be proposed at
the Annual General Meeting. This authority 
is limited to purchases through the London
Stock Exchange at a price of not less than 
5 pence per share and not more than 5%
above the average of the middle-market
quotations of the Company’s shares as
shown in the Alternative Investment Market
Daily Official List for the 10 business days
before the purchase is made, covering a
maximum number of 4,320,000 shares,
being approximately 15% of the Company’s 
present issued ordinary share capital.
The directors would not propose to exercise
the authority to make purchases unless the
expected effect of the purchase would be to
increase earnings per share of the remaining
shares in the capital of the Company, and
unless the purchase is generally in the 
best interest of shareholders. Any shares
purchased under this authority would be
treated as cancelled and the number of
shares in issue reduced accordingly. The
directors presently intend that a resolution 
to renew this authority will be proposed at
each succeeding Annual General Meeting.
STADIUM GROUP PLC
9 Annual Report and Accounts 2006
Substantial shareholdings
As far as the directors are aware, the only notifiable holdings equal to or in excess of 
3 per cent of the issued ordinary share capital at 31 January 2006 were:
Ordinary shares of 5p each Number %
Framlington Investment Management 3,112,250 10.8
Gartmore Investment Management 2,153,187 7 .5
EW Wiseman T rust 1,542,920 5.4
AE Fry 1,432,750 5.0
Barclays Stockbrokers Ltd Clients 1,300,979 4.5
AE Wiseman 1,026,072 3.6
DC Fry 1,022,750 3.6
70011 PRE NEW  17/3/07  7:00 am  Page 9 Financial risks
The financial risks experienced by the Group
are set out in detail in Note 15 to the
accounts on page 28.
The main risks faced are interest rate risk,
liquidity risk and foreign currency risk. The
directors regularly review and agree policies
for managing these risks.
Foreign currency risk is managed by
matching payments and receipts in foreign
currency to minimise exposure. Foreign
currency is bought to match liabilities as 
they fall due where currency receipts are
insufficient to match the liability. The results
of Stadium Asia are reported in Hong Kong
dollars, as a result of this the Group’s
balance sheet can be affected by
movements in the Hong Kong dollar.
Liquidity risk is managed by the Group
maintaining undrawn overdraft borrowing
facilities in order to provide short term
flexibility.
Interest rate risk is managed by holding a
mixture of cash and borrowings in Sterling
and US dollars at floating rates of interest.
Payment of suppliers
It is the Company’s policy to pay all suppliers
within payment terms formally agreed on 
an individual basis. The average period of
credit taken during 2006 was 60 days 
(2005: 60 days).
Donations
The Group made charitable donations 
during the year amounting to £1,000 
(2005: £1,000). No contributions were 
made to any political organisation.
Employees
The Group actively encourages employee
communication and involvement through
representation by Works Committee, and
participation in schemes offering an element
of performance related remuneration. In
addition, the share option schemes outlined
in note 17 to the accounts offer employees
the opportunity to benefit from the future
development prospects of the Group.
It is the Group’s policy to give full and fair
consideration to all applications from
disabled persons, with due consideration
being given to respective aptitudes and
abilities. The same policy applies in the event
of employees who become disabled during
employment. Appropriate training is provided
where applicable.
Independent auditors
PKF (UK) LLP were appointed as auditors
during the year following the resignation 
of PricewaterhouseCoopers LLP .
A resolution to reappoint PKF (UK) LLP as
auditors to the company will be proposed at
the annual general meeting. So far as each
of the directors is aware at the time the
report is approved:
● there is no relevant audit information 
of which the Company’s auditors are
unaware, and
● the directors have taken all steps that
they ought to have taken to make
themselves aware of any such
information.
By order of the Board
Colin Wilson
Company Secretary
26 February 2007
STADIUM GROUP PLC
Annual Report and Accounts 2006 10
Directors’ report continued
STADIUM GROUP plc
70011 PRE NEW  17/3/07  7:00 am  Page 10 The Directors
The board of directors, which leads and controls the company, has a formal schedule of
matters reserved for it, and consists of:
Non-executive chairman
Chief executive
Managing director – Electronics
Managing director – Stadium Asia
Senior independent director
The chairman and the senior independent director provide the appropriate balance between
the executive and non-executive directors, for a company of this size.
The board of directors take independent professional advice where necessary, at the
company’s expense. The board meets monthly, and the monthly management accounts and
other relevant information are circulated to all board members in advance of these meetings.
The consolidated group management accounts allow the performance of individual businesses
to be monitored against budget, previous forecasts and prior year actual results.
Existing directors are required to retire and submit themselves for re-election at least every
three years or at the first AGM after appointment. The appointment of new directors is
delegated to a nominations committee, which makes recommendations to the Board.
Directors’ remuneration
The Remuneration Committee consists entirely of the non-executive directors, and its 
policy and the details of each director’s remuneration are clearly explained in its report 
on pages 13 and 14 and in note 5.
A proportion of the executive directors’ remuneration is structured so as to link rewards to
corporate and individual performance. The board will consider every year whether the report 
of the Remuneration Committee should be an item on the AGM agenda.
Relations with the shareholders
After the announcement of the interim and final results the directors meet the major
institutional and private shareholders to discuss trading and future developments. The board
encourages all shareholders to participate at the AGM. Corporate news and financial
information is provided on the company’s website at www.stadium.co.uk.
Combined Code
The board recognises that the Combined Code represents best practice for AIM-listed
companies, and regulates its activities with regard to the principles and provisions contained
therein.
Statement of directors’ responsibilities
The directors are responsible for keeping proper accounting records that disclose with
reasonable accuracy at any time the financial position of the company and the group and to
enable them to ensure that the financial statements comply with the Companies Act 1985. 
They are also responsible for safeguarding the assets of the company and the group and
hence for taking steps for the prevention and detection of fraud and other irregularities.
STADIUM GROUP PLC
11 Annual Report and Accounts 2006
Corporate Governance
70011 PRE NEW  17/3/07  7:00 am  Page 11 Statement of directors’ responsibilities (continued)
The directors understand their responsibility, under company law, to prepare financial
statements for each financial year which give a true and fair view of the state of affairs of the
company and the group at the end of the financial year and of the profit or loss of the group
for the year to that date, along with public information that gives a balanced and
understandable assessment of the company’s position and prospects. In preparing these
financial statements the directors have:
– selected suitable accounting policies and applied them consistently;
– made judgements and estimates that are reasonable and prudent;
– used applicable accounting standards;
The directors are responsible for the maintenance and integrity of the website.
Internal control
The system of internal controls established by the directors is intended to be comprehensive,
although the limitations of any system of control is such that it is designed to manage rather
than eliminate the risk of failure to achieve business objectives and it provides a reasonable,
rather than absolute, level of assurance against material misstatement or loss.
The principal features of the system of internal financial controls are:
– budgetary control over all operating units, measuring performance against pre-determined
targets on at least a monthly basis
– regular forecasting and reviews covering trading performance, assets, liabilities and cash
flows
– delegated limits of authority covering key financial commitments including capital
expenditure and recruitment
– identification and management of key business and inherent risks
– implementation and annual review of a group compliance manual.
The board continually reviews the effectiveness of other internal controls, including financial,
operational, compliance controls and risk management.
Legislation in the UK concerning the preparation and dissemination of financial statements
may differ from legislation in other jurisdictions.
Audit Committee
The Audit Committee, which comprises the non-executive directors, meets to consider the
scope and key issues in planning the external audit. The external auditors report their findings
and any recommendations to the Audit Committee prior to the approval of the financial
statements.
Going concern
The directors confirm that, after having made appropriate enquiries, they have a reasonable
expectation that the group and company have adequate resources to continue operating for
the foreseeable future. Accordingly the directors continue to adopt the going concern basis in
the preparation of the accounts.
By order of the Board
Colin Wilson
Company Secretary
26 February 2007
STADIUM GROUP PLC
Annual Report and Accounts 2006 12
Corporate Governance continued
70011 PRE NEW  17/3/07  7:00 am  Page 12 I present, on behalf of the Remuneration Committee of the board of directors, a report on
executive remuneration for the year ended 31 December 2006.
All matters relating to the remuneration of the executive directors are dealt with by the
Remuneration Committee which comprises the two non-executive directors of the company.
The objective of the Remuneration Committee is to ensure that the executive directors are
fairly rewarded for their contribution to the overall performance of the group, and that their
remuneration is set in such a manner as to attract, retain and motivate suitable individuals with
due regard to the effect upon the operating costs of the company.
The Remuneration Committee considers all elements comprising executive remuneration,
including basic salary, annual performance related payments, benefits in kind, grants of share
options and other longer term performance related remuneration, pension provision and period
of contractual notice.
Basic entitlements
Each of the executive directors has a service contract which is subject to a notice period of
twelve months.
The executive directors are each paid a basic annual salary which is open to review each
January. In addition, the executive directors are entitled to annual performance related bonuses
which are dependent upon the attainment of specific financial targets. Further benefits in kind
are awarded as appropriate, including the provision of a company car and private medical
insurance.
Pension provision
The UK executive directors are members of the Stadium Group Retirement Benefits Plan
(1974), with benefits accruing at a rate at which they become entitled to a pension of two
thirds of final earnings at 60 years of age. Membership of the plan also provides a death in
service benefit of four times earnings and a widow’s pension of half the directors’ pension. 
The plan is contributory at the rate of 7 .5% (2005: 7 .5%).
Share options and other long term performance related payments
The executive directors are entitled to participate in the 1996 Executive Share Option Scheme
on the same terms as all other employees. In addition, executive directors have been granted
further options under this scheme which are normally exercisable after five years and are
subject to more stringent performance criteria. Details of these options are set out on page 8
and note 17 to the accounts.
STADIUM GROUP PLC
13 Annual Report and Accounts 2006
Report of the Remuneration Committee 
on behalf of the Board
70011 PRE NEW  17/3/07  7:00 am  Page 13 The executive directors participate in a long term incentive scheme which commenced on 
1 January 2006 and matures on 31 December 2008. Payments under the scheme are
dependent upon the level of real growth (adjusted for RPI changes) in fully diluted earnings 
per ordinary share, against a base point of pre-exceptional earnings per share from continuing
activities before goodwill amortisation.
Only current directors who continue to be employed on 1 January 2009 will receive any
payment. Payment will be determined according to the following scale:
Real EPS growth Bonus as a %
(after costs of scheme) of 2008 salary
<25% Nil
25% 25
each add. 1% up to 35% 2
35% 45
each additional 1% 3
Upper limit 100
There will be no substantive changes to the scheme in future without prior shareholder
approval. Copies of the terms of the scheme are available for inspection at the Registered
Office, Stephen House, Brenda Road, Hartlepool and will be available immediately prior to 
the Annual General Meeting.
Non-executive directors’ remuneration is determined by the board as a whole, and is set at
levels intended to attract individuals of an appropriate calibre.
Details of directors’ remuneration for the year ended 31 December 2006 are provided in 
note 5 to the accounts.
Nick Brayshaw
Chairman –  Remuneration Committee
26 February 2007
STADIUM GROUP PLC
Annual Report and Accounts 2006 14
Report of the Remuneration Committee 
on behalf of the Board continued
70011 PRE NEW  17/3/07  7:00 am  Page 14 We have audited the group and parent company financial statements (‘the financial statements’)
of Stadium Group plc for the year ended 31 December 2006 which comprise the consolidated
profit and loss account, the consolidated and company balance sheets, the consolidated cash
flow statement, the consolidated statement of total recognised gains and losses and the
related notes. The financial statements have been prepared under the accounting policies set
out therein.
This report is made solely to the company’s members, as a body, in accordance with section
235 of the Companies Act 1985. Our audit work has been undertaken so that we might state
to the company’s members those matters we are required to state to them in an auditors’
report and for no other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and the company’s members as a
body, for our audit work, for this report, or for the opinions we have formed.
Respective responsibilities of directors and auditors
The directors’ responsibilities for preparing the annual report and the financial statements in
accordance with applicable law and United Kingdom accounting standards (‘United Kingdom
Generally Accepted Accounting Practice’) are set out in the statement of directors’ responsibilities.
Our responsibility is to audit the financial statements in accordance with relevant legal and
regulatory requirements and International Standards on Auditing (UK and Ireland). 
We report to you our opinion as to whether the financial statements give a true and fair view
and have been properly prepared in accordance with the Companies Act 1985. We also report
to you whether in our opinion the information given in the directors’ report is consistent with
the financial statements.
In addition we report to you if, in our opinion, the company has not kept proper accounting
records, if we have not received all the information and explanations we require for our audit, 
or if information specified by law regarding directors’ remuneration and other transactions is
not disclosed.
We read other information contained in the annual report and consider whether it is consistent
with the audited financial statements. The other information comprises only the directors’ report,
the unaudited part of the report of the remuneration committee, the chairman’s statement, the
chief executive’s review and the corporate governance statement. We consider the implications
for our report if we become aware of any apparent misstatements or material inconsistencies
with the financial statements. Our responsibilities do not extend to any other information.
Basis of audit opinion
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland)
issued by the Auditing Practices Board. An audit includes examination, on a test basis, of
evidence relevant to the amounts and disclosures in the financial statements. It also includes
an assessment of the significant estimates and judgements made by the directors in the
preparation of the financial statements, and of whether the accounting policies are appropriate
to the group’s and company’s circumstances, consistently applied and adequately disclosed.
We planned and performed our audit so as to obtain all the information and explanations we
considered necessary in order to provide us with sufficient evidence to give reasonable
assurance that the financial statements are free from material misstatement, whether caused
by fraud or other irregularity or error. In forming our opinion we also evaluated the overall
adequacy of the presentation of information in the financial statements.
Opinion
In our opinion:
● the financial statements give a true and fair view, in accordance with United Kingdom
Generally Accepted Accounting Practice, of the state of the group’s and the parent
company’s affairs as at 31 December 2006 and of the group’s profit for the year 
then ended;
● the financial statements have been properly prepared in accordance with the Companies
Act 1985; and
● the information given in the directors’ report is consistent with the financial statements.
PKF (UK)LLP
Chartered Accountants and Registered Auditors
Leeds
26 February 2007
STADIUM GROUP PLC
15 Annual Report and Accounts 2006
Independent Auditors’ Report to the 
members of Stadium Group plc
70011 PRE NEW  17/3/07  7:00 am  Page 15 2006 2006 2006 2005
Continuing Continuing
operations Acquisitions operations
Notes £000’s £000’s £000’s £000’s
T urnover 1 38,151 401 38,552 36,515
Cost of sales (29,826) (233) (30,059) (27 ,684)
Gross profit 8,325 168 8,493 8,831
Net operating expenses before exceptional items 
and goodwill amortisation (5,960) (110) (6,070) (5,937)
Exceptional operating expenses 3 ––– (161)
Goodwill amortisation (132) (16) (148) (132)
Net operating expenses 3 (6,092) (126) (6,218) (6,230)
Operating profit 2 2,233 42 2,275 2,601
Profit on sale of fixed assets 3 340 330
Interest payable (net) 3 (250) (144)
Other finance costs 3 (12) (150)
Profit on ordinary activities before taxation 3 2,353 2,637
Taxation 6 (341) (482)
Profit for the financial year 21 2,012 2,155
Earnings per share
Basic 23 7 .0p 7 .6p
Diluted 23 7 .0p 7 .5p
Statement of group total recognised gains and losses 2006 2005
£000’s £000’s
Profit for the financial year 2,012 2,155
Exchange adjustments offset in reserves (885) 418
Actuarial loss net of deferred tax 24 (298) (331)
Total gains and losses recognised for the year 20 829 2,242
STADIUM GROUP PLC
Annual Report and Accounts 2006 16
Consolidated profit and loss account
for the year ended 31 December 2006
70011 PRE NEW  17/3/07  7:00 am  Page 16 Group Company
2006 2005 2006 2005
Notes £000’s £000’s £000’s £000’s
Fixed assets
Intangible assets 8 872 537 – –
Tangible assets 9 10,102 9,832 7,184 7 ,381
Investments 10 – – 6,102 5,411
10,974 10,369 13,286 12,792
Current assets
Stocks 11 5,872 5,943 2,285 2,000
Debtors due within one year 12 7 ,571 6,624 3,957 4,024
Cash at bank and in hand 296 236 1 3
13,739 12,803 6,243 6,027
Creditors: amounts falling due within one year
Bank overdrafts 14 (1,434) (1,758) (3,376) (3,108)
Creditors 13 (8,343) (8,688) (5,517) (6,937)
(9,777) (10,446) (8,893) (10,045)
Net current assets/(liabilities) 3,962 2,357 (2,651) (4,018)
Total assets less current liabilities 14,936 12,726 10,636 8,774
Creditors: amounts falling due after more than one year 14 (2,713) – (2,375) –
Provision for liabilities and charges 16 – (28) – –
Net assets excluding net pension liability 12,223 12,698 8,261 8,774
Net pension liability 24 (4,449) (4,858) – –
Net assets 7 ,774 7,840 8,261 8,774
Capital and reserves
Called up equity share capital 17 1,440 1,432 1,440 1,432
Share premium account 18 4,233 4,184 4,233 4,184
Capital redemption reserve 19 88 88 88 88
Profit and loss account 20 2,013 2,136 2,500 3,070
Equity shareholders’ funds 21 7 ,774 7,840 8,261 8,774
The accounts were approved and authorised for issue by the Board on 26 February 2007 and signed on its behalf by:
Nigel Rogers
Director
STADIUM GROUP PLC
17 Annual Report and Accounts 2006
Balance sheets
at 31 December 2006
70011 PRE NEW  17/3/07  7:00 am  Page 17 Notes 2006 2005
£000’s £000’s
Net cash inflow from operating activities A 847 604
Servicing of finance
Net interest paid (250) (144)
Net cash outflow from servicing of finance (250) (144)
T axation (386) (326)
Capital expenditure
Purchase of tangible fixed assets (1,683) (702)
Sale of tangible fixed assets 686 694
Net cash outflow for capital expenditure (997) (8)
Acquisitions and disposals
Acquisition consideration paid 22 (569) –
Receipt of deferred consideration – 313
Cash (outflow)/inflow from acquisitions and disposals (569) 313
Equity dividends paid (1,022) (956)
Net cash outflow before financing (2,377) (517)
Financing
Loans drawn down C 3,392 –
Loans repaid C (689) (1,045)
Equity share capital subscribed 58 166
Net cash inflow/(outflow) from financing 2,761 (879)
Increase/(decrease) in cash in the year B 384 (1,396)
STADIUM GROUP PLC
Annual Report and Accounts 2006 18
Consolidated cash flow statement
for the year ended 31 December 2006
70011 PRE NEW  17/3/07  7:00 am  Page 18 A Net cash inflow from operating activities
2006 2005
£000’s £000’s
Operating profit 2,275 2,601
Release of grants received – (45)
Goodwill amortisation 148 132
Share option costs 70 60
Depreciation 864 841
Loss on sale of tangible fixed assets – 6
Difference between pension charge and cash contributions (1,092) (1,237)
Decrease/(increase) in stocks 169 (2,096)
Increase in debtors (715) (520)
(Decrease)/increase in creditors (872) 862
Net cash inflow from operating activities 847 604
B Analysis of changes in net debt
2005 Cash flow 2006
£000’s £000’s £000’s
Cash 236 60 296
Bank overdrafts (1,758) 324 (1,434)
(1,522) 384 (1,138)
Loans due within one year (542) 10 (532)
Loans due after more than one year – (2,713) (2,713)
(2,064) (2,319) (4,383)
C Reconciliation of net cash flow to movement in net debt
2006 2005
£000’s £000’s
Increase/(decrease) in cash in the year 384 (1,396)
Net cash inflow/(outflow) from financing (2,703) 1,045
Movement in net debt resulting from cash flows (2,319) (351)
STADIUM GROUP PLC
19 Annual Report and Accounts 2006
Consolidated cash flow statement
for the year ended 31 December 2006
70011 PRE NEW  17/3/07  7:00 am  Page 19 Basis of accounting
The financial statements have been prepared under the historical cost convention in accordance
with the Companies Act 1985 and applicable Accounting Standards in the United Kingdom.
Basis of consolidation
The Group accounts consolidate those of the Company and its subsidiaries. Businesses
acquired or disposed of during the year are consolidated from the effective date of acquisition
or until the effective date of disposal.
Goodwill
Purchased goodwill is included within intangible assets, and amortised over its useful
economic life. In accordance with FRS 10 previously written off goodwill has not been
reinstated into the balance sheet, and is written back to the profit and loss account in the
event of a subsequent disposal.
Fixed assets
Fixed assets are stated at cost less accumulated depreciation. Depreciation is provided at rates
calculated to write down the cost of assets (excluding freehold land) over their estimated
useful lives by equal annual instalments at the following rates:
Freehold buildings 2%
Plant and machinery 10%-25%
Fixtures and equipment 10%-25%
Investments in subsidiary undertakings in the accounts of the Company are stated at cost less
provision for impairment.
Stocks and work in progress
Stocks and work in progress are stated at the lower of cost and net realisable value. Cost is
determined on a first in, first out basis including transport and handling costs and, in the case
of manufactured products, includes all direct expenditure and production overheads based on
normal levels of activity.
Deferred taxation
Deferred taxation is recognised in respect of all timing differences that have originated but not
reversed at the balance sheet date where transactions or events that result in an obligation to
pay more tax in the future or a right to pay less tax in the future have occurred at the balance
sheet date. A deferred tax asset is regarded as recoverable and therefore recognised only
when, on the basis of all available evidence, it can be regarded as more likely than not that
there will be suitable taxable surpluses from which the future reversal of the underlying timing
differences can be deducted. Deferred tax balances are not discounted.
STADIUM GROUP PLC
Annual Report and Accounts 2006 20
Statement of accounting policies
for the year ended 31 December 2006
70011 PRE NEW  17/3/07  7:00 am  Page 20 Pension costs
Defined benefit scheme
Assets and liabilities arising from retirement benefit obligations and the related funding are
reflected at fair value in the financial statements, and operating and finance costs are
recognised in the financial periods in which they arise. Gains and losses arising from actuarial
experience during the accounting period are recognised in the Statement of total recognised
gains and losses. In the separate company accounts, the multi-employer scheme for which 
the net pension liability cannot be split between entities is accounted for as a defined
contribution scheme.
Defined contribution schemes
Contributions payable are charged to the profit and loss account in the accounting period in
which they are incurred.
Foreign currencies 
Transactions denominated in foreign currencies are recorded at the prevailing rate on the date
of the transaction.
Trading assets and liabilities denominated in foreign currencies are translated into sterling 
at the rate prevailing at the year end. Gains and losses arising on the translation of foreign
currencies are dealt with as part of operating profit.
The assets and liabilities of foreign subsidiary undertakings are translated into Sterling at the
year end exchange rate. Exchange differences arising on retranslation of opening assets and
liabilities, and on long term financing denominated in foreign currency, are taken directly 
to reserves.
The profits and losses of foreign subsidiary undertakings are translated into Sterling at the
average exchange rate prevailing during the year. Exchange differences arising are dealt with 
in reserves. 
Turnover
Turnover represents the value of invoiced sales of goods and services during the year, net of
value added tax and discounts. Invoices are raised when goods are despatched to customers
and title to the goods passes.
STADIUM GROUP PLC
21 Annual Report and Accounts 2006
70011 PRE NEW  17/3/07  7:00 am  Page 21 1Turnover
2006 2005
(a) By origin: £000’s £000’s
Electronics – manufactured in Asia 21,262 20,228
– manufactured in UK 6,693 6,227
27 ,955 26,455
Branded Plastics – UK 10,597 10,060
38,552 36,515
2006 2005
Electronics Plastics Total Electronics Plastics Total
(b) By destination: £000’s £000’s £000’s £000’s £000’s £000’s
UK 14,164 10,054 24,218 13,470 9,575 23,045
Europe 2,189 460 2,649 2,774 440 3,214
Asia 4,205 15 4,220 4,998 – 4,998
Americas 4,767 – 4,767 3,189 – 3,189
Other 2,630 68 2,698 2,024 45 2,069
27 ,955 10,597 38,552 26,455 10,060 36,515
2006 2005
Electronics Plastics Total Electronics Plastics Total
(c) By industry sector: £000’s £000’s £000’s £000’s £000’s £000’s
Consumer 14,707 10,597 25,304 10,973 10,060 21,033
Industrial 9,973 – 9,973 9,829 – 9,829
Automotive 3,078 – 3,078 4,751 – 4,751
Telecom 197 – 197 902 – 902
27 ,955 10,597 38,552 26,455 10,060 36,515
2 Segment information
Operating profit Net assets
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
Electronics 1,873 2,173 8,383 8,078
Branded Plastics 848 871 4,485 4,057
Group
Net pension liability – – (4,449) (4,858)
Exceptional operating expenses – (161) – –
Goodwill amortisation (Electronics) (148) (132) 872 537
Other (298) (150) (1,517) 26
(446) (443) (5,094) (4,295)
T otal 2,275 2,601 7 ,774 7,840
STADIUM GROUP PLC
Notes to the financial statements
STADIUM GROUP plc 
Annual Report and Accounts 2006 22
70011 NOTES NEW  17/3/07  6:56 am  Page 22 3 Profit on ordinary activities before taxation
2006 2005
£000’s £000’s
(a) Net operating expenses
Distribution costs (2006: £5,000 in acquired entity) (1,498) (1,437)
Administrative expenses (2006: £122,000 in acquired entity) (5,149) (5,205)
Operating lease income (2006: £nil in acquired entity) 429 412
(6,218) (6,230)
(b) Administrative expenses for the prior year include exceptional operating expenses arising primarily from the
closure of manufacturing operations at Clacton in December 2004.
(c) Profit on sale of fixed assets comprises gains on the sale of freehold properties, including office premises in
Hong Kong (2006) and the site at Clacton (2005).
(d) Profit on ordinary activities before taxation is stated after charging/(crediting):
Auditors’ remuneration:
for audit services (including £25,000 in respect of the Company, 2005: £30,000) 65 85
for taxation compliance services 15 20
for other services 9 –
Depreciation 864 841
Goodwill amortisation 148 132
Deferred grants – (45)
Profit on sale of tangible fixed assets (340) (324)
(e) Interest payable (net) comprises:
Interest receivable 2 8
Interest payable on bank loan and overdrafts (252) (152)
(250) (144)
(f) Other finance costs comprises:
Expected return on pension scheme assets 1,286 1,146
Interest on pension scheme liabilities (1,298) (1,296)
(12) (150)
4 Employees
Average number of employees (including directors) during the year was: 2006 2005
Direct production – Plastics 88 87
– UK Electronics 145 136
– Asia Electronics 615 831
Selling and administrative (including indirect production) 556 566
1,404 1,620
Aggregate payroll costs were as follows: £000’s £000’s
Wages and salaries 7 ,353 7,094
Social Security costs 462 438
Pension costs (note 24) 285 209
8,100 7,7 41
STADIUM GROUP PLC
23 Annual Report and Accounts 2006
70011 NOTES NEW  17/3/07  6:56 am  Page 23 5 Directors’ remuneration 2006 2005
£000’s £000’s
Fees 70 62
Salaries and benefits in kind 474 466
Long term incentive scheme bonus (“LTIS”) – 434
544 962
Directors’ remuneration comprised: Benefits
Fees Salary in kind T otal 2005
£000’s £000’s £000’s £000’s £000’s
Nick Brayshaw 40 – – 40 20
Chris Gill 18 – – 18 –
Ken Leung – 112 11 123 233
Kevin Morley – – – – 8
Nigel Rogers – 174 11 185 351
Kamal Verma – 157 9 166 316
Struan Wiley 12 – – 12 34
Total 70 443 31 544 962
Nigel Rogers and Kamal Verma are both members of a defined benefit pension scheme (see note 24) and total
company contributions in the year were £43,000 (2005: £36,000). The accrued pension of the highest paid
director was £58,000 (2005: £53,000).
6 T axation 2006 2005
Current tax: £000’s £000’s £000’s £000’s
UK corporation tax on profit of the period – –
Adjustments in respect of previous periods – (107)
– (107)
Foreign tax 96 293
Total current tax 96 186
Deferred tax:
Origination and reversal of timing differences 245 326
Adjustments in respect of previous periods – (30)
Total deferred tax 245 296
Tax on profit on ordinary activities 341 482
The tax assessed for the period is lower than the 
standard rate of corporation tax in the UK (30 per cent). 
The differences are explained below:
Profit on ordinary activities before tax 2,353 2,637
Profit on ordinary activities multiplied by standard 
rate of corporation tax in the UK of 30% (2005: 30%) 706 791
Effects of:
Expenses not deductible for tax purposes 68 (80)
Capital allowances for period in excess of depreciation 81 (457)
Overseas earnings at lower rates (351) (351)
Deferred tax asset not recognised (430) 390
Adjustments in respect of previous periods 22 (107)
Current tax charge for period 96 186
STADIUM GROUP PLC
Notes to the financial statements continued
STADIUM GROUP plc 
Annual Report and Accounts 2006 24
70011 NOTES NEW  17/3/07  6:56 am  Page 24 7 Dividends
2006 2005
Equity £000’s £000’s
Ordinary dividends paid:
2005 final dividend at 2.4p per share (2004: 2.25p) 691 641
2006 interim dividend at 1.15p per share (2005: 1.10p) 331 315
1,022 956
The board proposes to pay a 2006 final dividend of 2.45p per share (2005: 2.4p) on 8 May 2007 to shareholders
on the register on 13 April 2007 , amounting to £706,000 (2005: £687 ,000).
8 Intangible fixed assets
GROUP Goodwill
Cost £000’s
At 1 January 2006 8,016
Acquired during the year (note 22) 484
At 31 December 2006 8,500
Amortisation
At 1 January 2006 7,480
Charge for year 148
At 31 December 2006 7,628
Net book amount
31 December 2006 872
31 December 2005 537
The net book amount of goodwill at 1 January 2006 relates to the acquisition of Stadium Asia Limited in 
March 2000, and is amortised on a straight line basis over ten years ending in 2009. Goodwill arising on the
acquisition of KRP in the current year will be amortised on a straight line basis over ten years ending in 2016,
which is the estimated useful life in the opinion of the directors.
9 Tangible fixed assets Freehold
land & Plant & Fixtures &
buildings machinery equipment T otal
GROUP £000’s £000’s £000’s £000’s
Cost
At 1 January 2006 10,343 12,807 2,500 25,650
Additions 892 710 81 1,683
Acquisition 9 97 101 207
Disposals (392) (391) (5) (788)
Exchange (59) (356) (104) (519)
At 31 December 2006 10,793 12,867 2,573 26,233
Depreciation
At 1 January 2006 3,064 10,665 2,089 15,818
Charge in year 208 539 117 864
Acquisition 9 52 100 161
Disposals (54) (388) (4) (446)
Exchange (8) (189) (69) (266)
At 31 December 2006 3,219 10,679 2,233 16,131
NBV
NBV at 31 December 2006 7 ,574 2,188 340 10,102
NBV at 1 January 2006 7 ,279 2,142 411 9,832
STADIUM GROUP PLC
25 Annual Report and Accounts 2006
70011 NOTES NEW  17/3/07  6:56 am  Page 25 9 Tangible fixed assets continued
Freehold
land & Plant & Fixtures &
buildings machinery equipment T otal
COMPANY £000’s £000’s £000’s £000’s
Cost
At 1 January 2006 9,506 4,185 999 14,690
Additions – 176 29 205
Disposals – (375) – (375)
At 31 December 2006 9,506 3,986 1,028 14,520
Depreciation
At 1 January 2006 2,619 3,819 871 7,309
Charge in year 188 166 46 400
Disposals – (373) – (373)
At 31 December 2006 2,807 3,612 917 7,336
NBV
NBV at 31 December 2006 6,699 374 111 7 ,184
NBV at 1 January 2006 6,887 366 128 7 ,381
There were no outstanding commitments in respect of Group capital expenditure.
10 Investments
Company
2006 2005
Investments in subsidiary companies at net book amount: £000’s £000’s
At 1 January 2006 5,411 5,411
Acquired during the year  691 –
At 31 December 2006 6,102 5,411
At 31 December 2006 the principal subsidiaries of the Company included on consolidation, all of which were
wholly owned, were as follows:
Name Nature of business Registration Operation
Stadium Asia Limited Electronic Manufacturing Services British Virgin Islands China/
Hong Kong
STMC Limited Electronic Manufacturing Services Hong Kong China
Stadium Power Limited Custom power supplies England & Wales UK
Quest Consumer Products Limited Babycare and nursery goods England & Wales UK
KRP Power Source (UK) Limited Power supply distribution England & Wales UK
STADIUM GROUP PLC
Notes to the financial statements continued
STADIUM GROUP plc 
Annual Report and Accounts 2006 26
70011 NOTES NEW  17/3/07  6:56 am  Page 26 11 Stocks
Group Company
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
Raw materials and consumables 2,772 3,226 565 382
Work in progress 650 465 384 204
Finished goods and goods for resale 2,450 2,252 1,336 1,414
5,872 5,943 2,285 2,000
12 Debtors
Group Company
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
Amounts due within one year:
Trade debtors 6,398 6,299 2,083 2,135
Amounts due from group companies – – 1,860 1,784
Other debtors 438 72 – –
Prepayments and accrued income 735 253 14 105
7 ,571 6,624 3,957 4,024
13 Creditors: amounts falling due within one year
Group Company
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
Current portion of bank loans (secured) 532 542 500 542
Trade creditors 4,899 4,592 959 963
Amounts owed to group companies – – 3,169 3,893
Corporation tax payable 188 485 – 230
Tax and social security 523 413 379 306
Other creditors 434 434 28 21
Accruals and deferred income 1,767 2,222 482 982
8,343 8,688 5,517 6,937
14 Creditors: amounts falling due after more than one year
Group Company
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
Bank loans (secured) 2,713 – 2,375 –
The net bank borrowings, including overdrafts, of Group companies are secured by fixed and floating charges 
over the assets of the Group. There is a guarantee relating to indebtedness of all Stadium Group companies in 
the UK to National Westminster Bank Plc, which is secured by a fixed and floating charge over the assets of all 
UK group companies.
STADIUM GROUP PLC
27 Annual Report and Accounts 2006
70011 NOTES NEW  17/3/07  6:56 am  Page 27 15 Derivatives and other financial instruments
Set out below are the narrative and numerical disclosures which the directors consider to be material, and
required by Financial Reporting Standard 25 “Financial Instruments – Disclosure and Presentation. ”
Narrative disclosures
Financial instruments:
The Group’s financial instruments, other than derivatives, comprise borrowings, some cash and liquid resources
and various items such as trade debtors, trade creditors, etc. that arise directly from its operations. The main
purpose of these financial instruments is to manage the finance of the Group’s operations.
It is, and has been throughout the period under review, the Group’s policy that no trading in financial instruments
shall be undertaken.
The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk and foreign
currency risk. The Board reviews and agrees policies for managing each of these risks and they are summarised
below.
Interest rate risk:
The Group finances its operations through a mixture of retained profits and bank borrowings. The Group holds
cash and borrows in Sterling and US dollars at floating rates of interest.
Liquidity risk:
As regards liquidity, the Group’s policy is to maintain undrawn overdraft borrowing facilities in order to provide
flexibility in the management of the Group’s liquidity. At the year end the Group had overdraft facilities of 
£2,482,000 (2005: £4,150,000) of which £1,434,000 was being used (2005: £1,758,000).
Foreign currency risk:
The Group has transactional currency exposures. Such exposures arise from sales or purchases by operating units
in currencies other than Sterling, being the Group’s functional currency. The Group matches payments and
receipts to minimise exposure, and buys the currency when the liability falls due.
The Group has one significant overseas business, Stadium Asia. As a result the Group’s balance sheet can be
affected by movements in Hong Kong dollars.
Numerical disclosures
Interest rate & currency profile of financial liabilities:
The Group’s financial liabilities are denominated in Sterling and HK$ and have floating interest rates. The floating
rate financial liabilities comprise:
•  Bank borrowings in HK$ that bear interest at bank base rate less 2%.
•  Loans and overdraft in Sterling that bear interest at rates based on bank base rates plus 1%.
Maturity of financial liabilities and undrawn facilities:
The maturity profile of the Group’s loans and overdrafts and undrawn facilities at 31 December 2006 was as
follows:
2006 2005
Liabilities Undrawn Liabilities Undrawn
£000’s £000’s £000’s £000’s
In 1 year or less, or on demand 1,966 1,048 2,300 2,392
In more than 1 year but not more than 2 years 533 – ––
In more than 2 years but not more than 5 years 1,612 – ––
In more than 5 years 568 – ––
4,679 1,048 2,300 2,392
STADIUM GROUP PLC
Notes to the financial statements continued
STADIUM GROUP plc 
Annual Report and Accounts 2006 28
70011 NOTES NEW  17/3/07  6:56 am  Page 28 15 Derivatives and other financial instruments continued
Currency exposures:
At 31 December 2006 the group had net borrowings denominated in HK$ of £503,000 (2005: £542,000).
Fair values of financial assets and liabilities:
Set out below is a comparison by category of book values and fair values of the Group’s financial assets and
liabilities as at 31 December 2006.
2006 2005
Book value Fair value Book value Fair value
£000’s £000’s £000’s £000’s
Cash at bank and in hand 296 296 236 236
Bank loans and overdrafts repayable within one year (1,966) (1,966) (2,300) (2,300)
Bank loans repayable after more than one year (2,713) (2,713) ––
In the opinion of the directors, there is no material difference between the book value and the fair value of cash
and bank borrowings in view of their short term nature.
16 Provision for liabilities and charges
Group Company
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
Deferred taxation has been fully provided at 
30% (2005: 30%) in respect of:
Capital allowances – 28 – –
Other timing differences – – – –
– 28 – –
Movement on the deferred tax liability was as follows:
At 1 January 2006 28 53 – –
Foreign exchange adjustment – 5 – –
Profit and loss account (28) (30) – –
At 31 December 2006 – 28 – –
Deferred tax asset on pension liability 1,907 2,082 – –
Deferred tax assets have not been recognised in relation to capital allowances in the UK subsidiaries, as profits 
in these subsidiaries are currently covered by losses arising in the parent company. The UK companies within 
the Group expect to be able to claim capital allowances in excess of depreciation in future years. The total amount
unrecognised is £1,367 ,000 (2005: £797 ,000). Future tax charges will be affected by the extent to which these
unprovided deferred tax assets are recognised.
17 Equity share capital
Group & Company
2006 2005
£000’s £000’s
Authorised
40,140,000 ordinary shares of 5p each 2,007 2,007
Allotted, called up and fully paid:
1 January 2006: 28,639,698 ordinary shares of 5p each 1,432 1,412
Issued during the year: 165,000 (2005: 415,000) ordinary shares of 5p each 8 20
31 December 2006: 28,804,698 ordinary shares of 5p each 1,440 1,432
STADIUM GROUP PLC
29 Annual Report and Accounts 2006
70011 NOTES NEW  17/3/07  6:56 am  Page 29 17 Equity share capital continued
Option agreements existed at 31 December 2006 to purchase ordinary shares of 5p each as follows:
Date granted Number of options Exercisable between: Price
21 March 1997 10,500 21 March 2000 & 21 March 2007 138.5p
31 March 1998 30,000 31 March 2001 & 31 March 2008 172.5p
19 October 1998 10,000 19 October 2001 & 19 October 2008 150.5p
29 March 1999 34,000 29 March 2002 & 29 March 2009 102.5p
10 April 2000 7 ,500 10 April 2003 & 10 April 2010 59p
31 December 2002 1,410,600 31 December 2007 & 31 December 2012 35p
17 March 2004 330,000 17 March 2007 & 17 March 2014 78.5p
4 April 2005 379,500 4 April 2008 & 4 April 2015 85.5p
18 Share premium account
2006 2005
Group & Group &
Company Company
£000’s £000’s
Balance at 1 January 4,184 4,038
165,000 shares issued at 35 pence each 
(2005: 415,000 shares at between 35 and 59 pence each) 49 146
Balance at 31 December 4,233 4,184
19 Capital redemption reserve
2006
Group &
Company
£000’s
Balance at 1 January 2006 and 31 December 2006 88
20 Profit and loss account
Group Company
2006 2006
£000’s £000’s
Retained profits at 1 January 2006 2,136 3,070
Total net gains/(losses) for the year 829 (168)
Share option costs recognised 70 70
Dividends received – 550
Dividends paid (1,022) (1,022)
Retained profits at 31 December 2006 2,013 2,500
At 31 December 2006 accumulated goodwill and costs arising on acquisitions eliminated against reserves
amounted to £4,076,000 (2005: £4,076,000).
The loss for the year dealt with in the accounts of the holding company amounted to £475,000 (2005: £620,000).
The directors have taken advantage of the exemption available under Section 230 of the Companies Act 1985 
and have not presented a profit and loss account for the company alone.
STADIUM GROUP PLC
Notes to the financial statements continued
STADIUM GROUP plc 
Annual Report and Accounts 2006 30
70011 NOTES NEW  17/3/07  6:56 am  Page 30 21 Reconciliation of movements in equity shareholders’ funds
Group Company
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
Profit/(loss) for the financial year 2,012 2,155 (168) (620)
Dividends received – – 550 –
Dividends paid (1,022) (956) (1,022) (956)
Equity share capital subscribed 57 166 57 166
Foreign exchange movement (885) 418 – (406)
Share option costs recognised 70 60 70 60
Actuarial loss net of deferred tax (298) (331) – –
Net movement (66) 1,512 (513) (1,756)
Equity shareholders’ funds at beginning of year 7 ,840 6,328 8,774 10,530
Equity shareholders’ funds at end of year 7 ,774 7 ,840 8,261 8,774
22 Acquisition of KRP Power Source (UK) Limited (“KRP”)
On 30 August 2006 the Company acquired 100% of the issued share capital of KRP a company registered in
England and Wales that distributes power supplies, for cash consideration.
The net assets of KRP at the date of acquisition were as follows:
Book Fair value Fair 
value adjustment value
£000’s £000’s £000’s
Tangible fixed assets 46 – 46
Stocks 98 – 98
Debtors 206 – 206
Creditors (due in <1 year) (225) (40) (265)
Net trading assets 125 (40) 85
Consideration – paid and payable (650)
– acquisition costs (40)
– total cash outflow (690)
– cash balance acquired 121 (569)
Goodwill arising on acquisition (note 8) 484
On 31 December 2006 the business and assets of KRP were transferred to Stadium Power Limited at book
value and the company became dormant.
STADIUM GROUP PLC
31 Annual Report and Accounts 2006
70011 NOTES NEW  17/3/07  6:56 am  Page 31 23 Earnings per share
The calculation of basic earnings per share is based on the profit for the financial year of £2,012,000 
(2005: £2,155,000) and the weighted average number of ordinary shares in issue during the year of 28,755,369
(2005: 28,537 ,013).
Diluted earnings per share reflect dilutive options granted resulting in a weighted average number of 29,383,301
ordinary shares (2005: 29,450,658), and profit for the financial year (before deducting share option costs) 
of £2,082,000.
The reconciliation of basic earnings per share to earnings per share excluding exceptional items and goodwill
amortisation is as follows:
2006 2005
£000’s per share £000’s per share
Earnings before goodwill amortisation 
and exceptional items 1,820 6.3p 2,169 7 .6p
Goodwill amortisation (148) (0.5)p (132) (0.5)p
Exceptional items (net of taxation) 340 1.2p 118 0.5p
Basic earnings per share 2,012 7 .0p 2,155 7 .6p
24 Pension commitments
(a) The Group operates two principal pension schemes for current employees.
(i) The Stadium 1974 Pension Scheme
This is a defined benefit plan available to employees and executive directors, with active membership
at 31 December 2006 of 41 (1 January 2006: 46). It was closed to new entrants in 1995. During 2006
the Company paid total contributions of £1,261,000 and has agreed with the actuary to make
contributions at a similar level during 2007 , subject to further advice.
Pension costs attributable to this scheme are assessed in accordance with the advice of an
independent actuary using the projected unit method. The latest actuarial review considered the
position as at 7 April 2005, and assumed that the annual investment return would exceed salary
increases (including merit) by a margin of 3%. At 7 April 2005 the middle market value of the 
scheme assets was £17 ,167 ,000.
(ii) The Stadium 1996 Pension Plan
This is a defined contribution scheme with active membership at 31 December 2006 of 78
(1 January 2006: 90). The profit and loss account effect of this scheme, together with other minor
pension contributions made on a money purchase basis, was a cost of £60,000 (2005: £68,000).
STADIUM GROUP PLC
Notes to the financial statements continued
STADIUM GROUP plc 
Annual Report and Accounts 2006 32
70011 NOTES NEW  17/3/07  6:56 am  Page 32 24 Pension commitments continued
(b) FRS 17 Retirement Benefits
The valuations used for FRS 17 purposes have been estimated by the scheme actuary.
The financial assumptions used at the end of the period to calculate the scheme liabilities and expected
returns on assets are:
Valuation method Projected Unit
2006 2005 2004 2003 2002
Discount rate 5.2% 4.8% 5.4% 5.6% 5.4%
Salary increases 3.0% 2.8% 2.8% 2.8% 2.3%
Inflation 3.0% 2.8% 2.8% 2.8% 2.3%
Pension increases 3.0% 2.5% 2.5% 2.5% 2.3%
Value at Value at Value at Value at Value at
Investments 31 December 31 December 31 December 31 December 31 December
(including long 2006 2005 2004 2003 2002
term expected £000’s £000’s £000’s £000’s £000’s
rate of return)
– Equities 10,704 (7 .9%) 9,868 (7.7%) 9,125 (7.8%) 8,104 (7.9%) 7,871 (8.3%)
– Bonds 8,071 (4.9%) 8,192 (4.4%) 5,887 (4.9%) 4,356 (5.1%) 3,240 (5.4%)
– Others 3,606 (7 .8%) 2,085 (7.7%) 1,708 (7.8%) 1,441 (7.8%) 1,344 (4.0%)
22,381 20,145 16,720 13,901 12,455 
Based on the FRS 17 assumptions the funding of the scheme was:
2006 2005 2004 2003 2002
£000’s £000’s £000’s £000’s £000’s
Market value of assets 22,381 20,145 16,720 13,901 12,455
Present value of liabilities (28,737) (27 ,085) (24,275) (23,332) (22,428)
Scheme deficit (6,356) (6,940) (7 ,555) (9,431) (9,973)
Related deferred tax asset 1,907 2,082 2,267 2,829 2,992
Net pension liability (4,449) (4,858) (5,288) (6,602) (6,981)
The movement in deficit (before deferred tax) during the year comprised
2006 2005
£000’s £000’s
Deficit in the scheme at 1 January (6,940) (7 ,555)
Current service costs (225) (141)
Curtailment (87) –
Contributions 1,261 1,378
Net finance cost (12) (150)
Actuarial loss (353) (472)
Deficit in the scheme at 31 December (6,356) (6,940)
STADIUM GROUP PLC
33 Annual Report and Accounts 2006
70011 NOTES NEW  17/3/07  6:56 am  Page 33 24 Pension commitments continued
(b) FRS 17 Retirement Benefits continued
Analysis of effect on the statement of total recognised
gains and losses comprised:
2006 2005
£000’s £000’s
Actual return less expected return on scheme assets 792 1,884
Experience gains and losses on scheme liabilities 100 (210)
Change in assumptions underlying the present value
of scheme liabilities (1,245) (2,146)
Movement on deferred tax account 55 141
(298) (331)
History of experience gains and losses
2006 2005 2004 2003 2002
Difference between the actual and 
expected return on scheme assets:
amount (£000’s) 792 1,884 682 805 (3,155)
% of scheme assets 4% 11% 4% 6% (25%)
Experience gain/(loss) on 
scheme liabilities:
amount (£000’s) 100 (210) 240 (403) (704)
% of the present value of 
scheme liabilities 0% 1% 1% (2%) (3%)
Total actuarial gain/(loss) 
recognised in STRGL
amount (£000’s) (298) (331) 222 347 (5,163)
% of the present value of 
scheme liabilities 1% (1%) 1% 1% (23%)
STADIUM GROUP PLC
Notes to the financial statements continued
STADIUM GROUP plc 
Annual Report and Accounts 2006 34
70011 NOTES NEW  17/3/07  6:56 am  Page 34 2002 2003 2004 2005 2006
£000’s £000’s £000’s £000’s £000’s
Turnover*
1
35,375 34,875 33,801 36,515 38,552
Operating profit*
1
1,615 2,278 2,655 2,894 2,423
Discontinued activities (366) – – – –
Exceptional items (2,113) 111 (202) 169 340
Goodwill amortisation and impairment (132) (132) (132) (132) (148)
Interest payable (141) (341) (342) (294) (262)
Profit/(loss) before taxation (1,137) 1,916 1,979 2,637 2,353
Earnings per share*
1
4.0p 5.3p 7 .2p 7 .6p 6.3p
Ordinary dividend per share 2.8p 2.9p 3.25p 3.5p 3.6p
Interest cover*
1
8.7x 15.0x 12.9x 10.2x 9.2x
Dividend cover*
1
1 .4x 1 .8x 2.2x 2.2x 1.9x
Fixed assets 12,127 11,019 10,801 10,369 10,974
Working capital 4,181 2,688 2,449 4,42 5,632
Bank borrowings (net) (4,525) (1,585) (1,581) (2,064) (4,383)
Other liabilities (329) (249) (53) (28) –
Net assets (before net pension liability) 11,454 11,873 11,616 12,698 12,223
Net assets per share (before net pension liability) 41p 42p 41p 44p 43p
Bank gearing (before net pension liability) 40% 13% 14% 16% 36%
Net pension liability (6,981) (6,602) (5,288) (4,858) (4,449)
*
1
Pre-exceptional items and goodwill amortisation, from continuing activities.
STADIUM GROUP PLC
Five year financial summary
STADIUM GROUP plc 
35 Annual Report and Accounts 2006
70011 NOTES NEW  17/3/07  6:56 am  Page 35 STADIUM GROUP PLC
Notice of Annual General Meeting
STADIUM GROUP plc 
Annual Report and Accounts 2006 36
Notice is hereby given that the Annual General Meeting of the Company will be held at 12 Smithfield St. London
EC1A 9BD, at 10 a.m., on 19 April 2007 to consider, and if thought fit, to pass the following resolutions 1 to 5 as
Ordinary Resolutions, and resolutions 6 and 7 as Special Resolutions.
Resolution 1
To receive the accounts and reports of the directors and the auditors thereon for the year ended 31 December 2006.
Resolution 2
To declare a final dividend of 2.45 pence per ordinary share payable on 8 May 2007 to shareholders on the register on 
13 April 2007 .
Resolution 3
To re-elect Mr K. K. Verma as a director.
Resolution 4
To re-elect Mr N. P . Brayshaw as a director.
Resolution 5
To reappoint PKF (UK) LLP as auditors of the Company to hold office until the conclusion of the next general meeting at
which accounts are laid before the Company and that their remuneration be fixed by the directors.
Resolution 6 (special resolution)
To empower the directors, pursuant to section 95 of the Companies Act 1985, to allot equity securities (as defined in
section 94 of that Act) for cash, at any time when they are generally authorised for the purposes of section 80 of that
Act, as if section 89(1) of that Act did not apply to any such allotment, provided that this power is limited:
(i) to the allotment of equity securities in connection with a rights issue in favour of the holders of ordinary 
shares where the equity securities respectively attributable to the interests of the ordinary shareholders are
proportionate (as nearly as maybe) to the respective numbers or ordinary shares held or deemed to be held by
them, subject only to such exclusions or other arrangements as the director may deem necessary or expedient 
to deal with fractional entitlements, legal or practical problems arising in any overseas territory or by virtue of
shares being represented by depository receipts, the requirements of any regulatory body or stock exchange, 
or any other matter whatsoever, and
(ii) to the allotment (otherwise than pursuant to sub-paragraph (i) of this resolution) of equity securities up to an
aggregate nominal value of £72,000 and shall expire at the conclusion of the Annual General Meeting of the
Company in 2008 or 19 July 2008, whichever is the earlier, save that the Company may before such expiry make
any offer or agreement which would or might require equity securities to be allotted after such expiry and the
directors may allot equity securities in pursuant of such offer or agreement as if the power hereby conferred 
had not expired.
70011 NOTES NEW  17/3/07  6:56 am  Page 36 Resolution 7 (special resolution)
To generally and unconditionally authorise the Company to make market purchases (within the meaning of Section
163(3) of the Companies Act 1985) of ordinary shares of 5 pence each of the Company provided that:
(i) the maximum number of ordinary shares hereby authorised to be acquired is 4,320,000 ordinary shares, being
approximately 15% of the issued share capital of the Company;
(ii) the minimum price which may be paid for any such share is 5 pence;
(iii) the maximum price which may be paid for any such share is an amount equal to 105% of the average of the
middle market quotations for an ordinary share in the Company as derived from The London Stock Exchange 
Daily Official List for the 10 business days immediately preceding the day on which such share is contracted 
to be purchased;
(iv) the authority hereby conferred shall expire on the earlier of the 2008 Annual General Meeting or 19 July 2008;
(v) the Company may make a contract to purchase its ordinary shares under the authority hereby conferred prior to
the expiry of such authority, which contract will or may be executed wholly or partly after expiry of such authority,
and may purchase its ordinary shares in pursuance of any such contract.
By order of the Board
C. Wilson
Company Secretary
26 February 2007
Notes
Resolution 6 empowers the directors to allot ordinary shares for cash otherwise than pro-rata to existing shareholders.
This power is limited to allotments in connection with a rights issue, and otherwise to 1,440,235 ordinary shares
representing approximately 5 per cent of the issued ordinary share capital of the Company as at 31 December 2006.
A member entitled to attend and vote at the meeting may appoint a proxy (who need not be a member of the Company)
to attend and, on a poll, to vote in his place. The instrument appointing a proxy should be deposited a the Company’s
registered office not less than 48 hours before the time of the meeting.
Registered in England No: 236394. Registered Office: Stephen House, Brenda Road, Hartlepool, TS25 2BQ.
STADIUM GROUP PLC
37 Annual Report and Accounts 2006
70011 NOTES NEW  17/3/07  6:56 am  Page 37 STADIUM GROUP PLC
Shareholder Notes
STADIUM GROUP plc 
Annual Report and Accounts 2006 38
70011 NOTES NEW  17/3/07  6:56 am  Page 38 STADIUM GROUP PLC
39 Annual Report and Accounts 2006
70011 NOTES NEW  17/3/07  6:56 am  Page 39 STADIUM GROUP PLC
Corporate directory
STADIUM GROUP plc 
Annual Report and Accounts 2006 40
Registered office Stephen House
Brenda Road
Hartlepool
TS25 2BQ
Registered number 236394
Registrars Capita Registrars
Northern House
Woodsome Park
Fenay Bridge
Huddersfield
W. Y orkshire
HD8 0LA
Independent auditors PKF (UK) LLP
Pannell House
6 Queen Street
Leeds
LS1 2TW
Bankers National Westminster Bank plc
48 Albert Road
Middlesbrough
TS1 1QD
Advisors Brewin Dolphin Securities Ltd
34 Lisbon Street
Leeds
LS1 4LX
70011 NOTES NEW  17/3/07  6:56 am  Page 40 world class technology and service
STADIUM GROUP PLC
70011 COVER NEW  17/3/07  6:59 am  Page 4 Stadium Group plc
Stephen House
Brenda Road
Hartlepool  TS25 2BQ
www.stadium.co.uk
70011 COVER NEW  17/3/07  6:58 am  Page 1