delivering globally competitive
electronic manufacturing solutions
annual report 
2003
group plc contents
y ear in brief 1
group at a glance 2
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
corporate directory 16
consolidated profit and 
loss account
17
balance sheets 18
consolidated cash flow 
statement
19
accounting policy statement 21
notes to the accounts 23
5 year financial summary 35
notice of agm 36
we deliver market leading electronic
manufacturing services to original equipment
manufacturers around the world our plants in
the uk and china provide high quality services 
at globally competitive costs
our products and assemblies are used 
by some of the world’s leading brands 
in consumer automotive telecommunications 
and industrial sectors
registered in england no 236394
front cover stadium asia  dongguan facility
group plc y ear in brief
a year of significant progress and strong financial results


Summary:
 “further investment
has enabled closer
cooperation between
asia and the uk ”
overview
these results mark a year of
consolidation in which several
important customer relationships
were brought to fruition and 
new initiatives were undertaken
which will maintain growth of the
business in future
global markets are becoming
increasingly fast moving and
demanding and china is emerging
as one of the world’s major
economies stadium is well placed
to capitalise on these market 
trends with flexible manufacturing
operations well developed design
and engineering capabilities and 
a highly skilled workforce
2003 also marked a return to
increased volatility in foreign
exchanges with the us dollar
weakening approximately 10
against sterling and approximately
20 against the euro whilst 
these movements tend to increase
the competitiveness of stadium 
asia against uk and european
manufacturers they have an adverse
impact on the translation of its
results for group reporting purposes
this increased volatility coupled
with the increasing importance to
the group of our asian operations
has led to a change in accounting
policy on the translation of results 
of overseas operations these have
been translated at average rates 
of exchange prevailing during the
year whereas previously results
were translated at closing rates 
of exchange
results and dividend
profit before tax was £19m
compared with a loss of £13m for
last year profits from continuing
activities before exceptional items
and goodwill amortisation increased
by 49 to £19m from £13m
group turnover on continuing
operations was similar at £349m
although stadium asia experienced
an increase of 15 to £145m
equivalent to growth of 22 
when stated in local currencyuk
electronics suffered a corresponding
decline from £138m to £106m
earnings per share of 52 pence
compared with a loss per share of
28 pence last year pre exceptional
earnings per share rose by 26 
to 53p from 42p
borrowings were reduced by 
£29m to £16m with operating
cash flow of £24m being
supplemented by the receipt of
£10m of deferred consideration
this enabled the paydown of bank
debt ahead of the scheduled due
date and year end gearing of 12
the strength of this performance
has enabled the board to propose 
an increase in the total dividend 
to 29 pence per share the final
dividend of 195 pence will be paid
on 4 may 2004 to shareholders on
the register as at 2 april 2004
chief executive’s review
stadium group plc
6
annual report and accounts 2003 operating margins improved to 61
2002 32 this favourable trend
was mainly a result of beneficial
changes to product and customer
mix with a higher contribution 
from recently converted original
equipment contracts and lower
reliance on more traditional
commodity products
further development and investment
in production capacity in china
including expansion of surface mount
placement capabilities have enabled
closer cooperation between asia
and the uk our uk based 
sales product development and
engineering infrastructure is 
now supplemented by chinese
manufacture which provides a
credible offer to customers for 
more complex applications
during the second half of the 
year our second chinese facility
stmc limited was fitted out
regulatory formalities to begin
transacting domestic sales in 
china are complete and we expect
the operation to begin making a
small contribution in 2004 sales
from our uk facilities reduced to
£106m a high proportion of the
business which remains uk sourced
is sold into industrial markets and
we expect to see greater stability 
in coming months
stadium group plc
7
2003 2002
restated
continuing operations £’000 £’000
turnover
– asia 14450 12526
– uk 10604 13773
25054 26299
operating profit 1537 852
electronics
2003 2002
continuing operations £’000 £’000
turnover 9821 9889
operating profit 890 922
plastics
“confidence in the
delivery of further
growth ”
turnover was maintained despite
challenging markets by taking an
assertive approach to maintaining
and building market share
production capacity utilisation for
larger mouldings was high whilst
new channels for the cost effective
introduction of smaller products
factored from partners in the 
far east region were introduced
current trading and prospects
strong customer demand at the 
end of 2003 has continued into
2004 and sales are well ahead of
the corresponding period last year
we continue to attract new
customers and enquiries at an
increasing rate giving us confidence
in the delivery of further growth in
the current year and beyond
nigel rogers
chief executive
23 february 2004