2002
group plc
world class products
at globally competitive prices
annual report group plc
contents
year in brief 1
group at a glance 2
board of directors 4
chairman’s statement 5
chief executive’s review 6
directors’ report 9
corporate governance 12
remuneration report 14
independent auditors’
report
16
corporate directory 17
profit and loss account 18
balance sheet 19
cash flow statement 20
account policy statement 22
notes to the accounts 24
5 year financial summary 37
notice of agm 38
proxy form 39
stadium group plc is a leading
supplier of quality electronic
manufacturing services to
original equipment
manufacturers our plants in
the uk and china allow us to
compete in global markets at
globally competitive costs
we make products and
assemblies which are used 
by companies that are
household names including
some of the world’s leading
brands
we are passionate about our business providing
quality products and reliable consistent and
superior service to our customers
we believe that our business strategy offers
stakeholders significant prospects for growth 1
stadium group plc
year in brief
we are now in a phase of strong organic growth at stadium asia
and our uk operations have been stabilised


Summary:
 “we have a strong
team of dedicated
people providing first
class services to an
expanding list of high
quality customers”
overview
we are pleased to report trading
results which are ahead of
expectations further substantial
reductions in net borrowings and a
positive outlook for the year ahead
this has been achieved against a
difficult backdrop with most uk
based manufacturers including both
our customers and competitors
facing tougher market conditions
as volumes and margins come
under continued pressure
by contrast rapid development of
the pearl river delta area of south
eastern china for both sourcing and
oem inward investment has fuelled
excellent growth in turnover and
earnings at stadium asia
within the group results from
continuing activities we have also
borne the effects of a weakening
us dollar and additional costs
associated with the funding of 
uk pension obligations
results and dividend
profit before tax goodwill
amortisation and exceptional items
from continuing activities was 
£122 million based on operating
profits up 59 to £149 million
2001 £093 million less interest
costs of £267000 2001 £939000
earnings from these activities was
more than doubled to 40 pence 
per share from 19 pence basic
earnings after the impact of
discontinued activities disposals
and goodwill amortisation were a
loss of 30 pence per share against
a loss of 283 pence in 2001 
this reflects the final phase of
implementation of the june 2001
strategic review and further
exceptional costs are anticipated 
to be minimal
net borrowings were reduced by
£657 million to £452 million to give
gearing of 36 these figures are
expressed without allowing for
deferred consideration receivable
totalling £230 million including
£102 million during 2003 adjusted
gearing net of deferred
consideration was 18
the board proposes a final dividend
of 185 pence per share bringing
the total for the year to 28 pence
2001 28 pence the final dividend
will be payable to shareholders on
the register on 4 april 2003 and will
be paid on 5 may 2003
chief executive’s review
stadium group plc
6
annual report and accounts 2002
2002 2001
£’000 continuing total continuing total
turnover 25486 26921 24222 28974
operating profit
before exceptionals 
and goodwill 799 625 295 178
operating margin 31 23 12 06
electronics “we have continued
to invest   
attracting more
complex projects”
turnover at stadium asia increased
by 45 to £1171 million and
operating profits increased eightfold
to £078 million these results were
especially strong in view of the ten
per cent depreciation of the hong
kong dollar relative to sterling during
the year the increase in turnover is
attributable to the full annual impact
of major automotive and consumer
products contracts won in 2001 
and the introduction of new
customers including a leading
producer of domestic appliance
controls
the rapid introduction of new
business brought capacity utilisation
to around 60 with resulting
benefits in operational gearing 
we have continued to invest in
developing the capability of the
business and this is attracting more
complex projects the level of new
business won towards the end of
the year gives us confidence that
strong growth can be sustained 
in the coming year
negotiations are ongoing to
incorporate a new subsidiary in
the peoples republic of china with
domestic selling rights this will
place stadium in a strong position 
to exploit major opportunities 
in high growth consumer
telecommunications and automotive
markets in the region
uk electronics achieved results
slightly better than break even
despite a decline in turnover of 
15 to £1377 million this
reduction reflects the continuing
difficult conditions for uk based
manufacturers exceptional costs 
of £039 million were borne in
closing a number of sites and our
uk headcount in electronics fell by
almost half from 529 to 275
our businesses in the uk are 
lean and well managed and 
remain an important part of our
service offer to customers both
in their own right and as a gateway
to stadium asia
stadium group plc
7
2002 2001
£’000 £’000
turnover 9889 9909
operating profit before exceptionals 922 828
operating margin 93 84
plastics – continuing activities
operations at chingford were able
to deliver improved profits in stable
markets making a valuable
contribution to the group’s overall
performance
investment in additional plastic
injection moulding capacity at the
turn of the year should provide the
opportunity to maintain progress chief executive’s review continued
stadium group plc
8
annual report and accounts 2002
“ample financing for
future growth”
balance sheet and cash flow
the full benefits of our restructuring
are now apparent with major
reductions in fixed and working
capital flowing into dramatically
reduced borrowings this provides
ample financing for the future
growth of the business and will
lead to even lower interest costs 
in 2003
in november 2002 the net
borrowings of the group were
revised to include a us dollar
denominated loan which provides 
a hedge against us dollar linked
assets held in asia this provided a
benefit of £012 million to reserves
in 2002 and is expected to largely
eliminate further exposure in 2003
pensions
during the year the two principal
defined benefit schemes which
have been closed to new entrants
since 1996 were combined and a
triennial actuarial review was carried
out as at 7 april 2002
the resulting charge to profit and
loss account was £020 million of
normal contributions for the full
year and a further £026 million
of additional contributions
representing nine months to
reflect the accumulated deficit
this compares to a net pension
credit of £011 million in 2001 and
the full cost has been expensed
against continuing activities
current trading and prospects
sales for the current year to date 
at stadium asia are substantially
higher than the corresponding
period last year and the order book
is at a high level operations in the
uk remain under some pressure
but we are trading at levels
comparable with last year
the rate of new business coming
into asia and the potential yet to be
realised in the domestic chinese
market gives us confidence both in
the short and long term future of
the group
nigel rogers
chief executive
25 february 2003