group plc
annual report
70011 cover new  17307  658 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  17307  659 am  page 3 stadium group plc
1 annual report and accounts 2006
● turnover up 6 to £3855m 2005 £3652m
● profits before tax £235m 2005 £264m
● 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 36 pence 2005 35 pence
summarised results
2006 2005
£m £m
group turnover
asia 21 3 202
uk 17 3 163
–––––– ––––––
total 386 365
–––––– ––––––
–––––– ––––––
adjusted pbt 216 260
goodwill amortisation 015 013
exceptional items 034 017
–––––– ––––––
reported pbt 235 264
–––––– ––––––
pence pence
adjusted eps 63 7 6
goodwill amortisation 05 05
exceptional items 12 05
–––––– ––––––
reported eps 7 0 7 6
–––––– ––––––
dividend per share 360 350
–––––– ––––––
denotes before goodwill amortisation and exceptional items
year in brief
70011 pre new  17307  700 am  page 1 stadium group plc
world class technology and service
annual report and accounts 2006 2
70011 pre new  17307  700 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 buildtoprint 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 acdc converters 
dcdc converters dcac 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 overmoulding
● 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  17307  700 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
nonexecutive directors
nick brayshaw – chairman audit remuneration and nominations committees
aged 51 was appointed as a nonexecutive 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 nonexecutive 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 nonexecutive 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
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annual report and accounts 2006 4
70011 pre new  17307  700 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 £235m
2005 £264m 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 63p
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
£085m 2005 £060m net bank
borrowings increased during the
year from £206m to £438m
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 245 pence per share
2005 24 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
36 pence per share an increase 
of 3 over the prior year 35 pence
per share which is covered by
earnings 19 times 2005 22 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  17307  700 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 £3855m
2005 £3652m 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 £228m 
2005 £260m 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 £235m 2005 £264m or
by 17 to £216m 2005 £260m
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
£034m 2005 sale of surplus uk
freehold property of £033m
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 
63 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 £014m 6 and net assets by
£089m 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 £02m
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 15 to 67 the
performance in the second half
7 3 marked a recovery from the
61 reported at the interim stage
stadium power contributed more
than £33m of sales including
£04m 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 21262 20228
– uk 6693 6227
27 955 26455
operating profit 1873 2173
70011 pre new  17307  700 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 £085m stated after
meeting pension deficit funding
contributions of £109m 2005 net
inflow of £060m after pension
contributions of £124m
net cash outflow on fixed assets 
of £100m included the relocation 
of the hong kong office of stadium
asia limited at a net cost of £02m
there was further investment in
manufacturing plant and equipment
in asia and the uk totalling £080m
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 £057m this additional
investment in the business was
funded by drawing down net bank
loans of £270m and resulted in
year end borrowings of £438m
2005 £206m
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 £486m to
approximately £30m 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 £204m and a net
pension liability of £445m
acquisitions
during the year we completed 
the acquisition of krp power 
source uk limited for net cash
consideration of £057m since
completion on 30 august 2006 
the business has performed 
slightly ahead of our expectations
contributing an operating profit
before goodwill amortisation 
of £006m
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 10597 10060
operating profit 848 871
plastics
70011 pre new  17307  700 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 115 pence 
2005 11 pence per ordinary share
amounting to £331000 2005 £315000
was paid on 2 october 2006 the directors
recommend payment of a final dividend of 
245 pence 2005 24 pence per share
amounting to £706000 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 20000 – – – 20000
chris gill
appointed 20 april 2006 20000 20000 – – –
ken leung 240400 50000 – – 190400
nigel rogers 289055 – – 80000 209055
kamal verma 393637 – 60000 60000 393637
struan wiley 
retired 20 april 2006 22833 – – – 22833
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 855p
ken leung 470200 37 500
nigel rogers 470200 37 500
kamal verma 470200 37 500
on 23 march 2006 nigel rogers and kamal verma exercised 140000 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 £24000 and £18000 respectively
on 7 june 2005 ken leung exercised 25000 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 £11500
70011 pre new  17307  700 am  page 8 the market price of ordinary shares at 
31 december 2006 was 595p 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 middlemarket
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 4320000 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 3112250 108
gartmore investment management 2153187 7 5
ew wiseman t rust 1542920 54
ae fry 1432750 50
barclays stockbrokers ltd clients 1300979 45
ae wiseman 1026072 36
dc fry 1022750 36
70011 pre new  17307  700 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 £1000 
2005 £1000 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  17307  700 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
nonexecutive 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 nonexecutive 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 reelection 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 nonexecutive 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 wwwstadiumcouk
combined code
the board recognises that the combined code represents best practice for aimlisted
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  17307  700 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 predetermined
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 nonexecutive 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  17307  700 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 nonexecutive 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  17307  700 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 preexceptional 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
nonexecutive 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  17307  700 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 ukllp
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  17307  700 am  page 15 2006 2006 2006 2005
continuing continuing
operations acquisitions operations
notes £000’s £000’s £000’s £000’s
t urnover 1 38151 401 38552 36515
cost of sales 29826 233 30059 27 684
gross profit 8325 168 8493 8831
net operating expenses before exceptional items 
and goodwill amortisation 5960 110 6070 5937
exceptional operating expenses 3 ––– 161
goodwill amortisation 132 16 148 132
net operating expenses 3 6092 126 6218 6230
operating profit 2 2233 42 2275 2601
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 2353 2637
taxation 6 341 482
profit for the financial year 21 2012 2155
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 2012 2155
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 2242
stadium group plc
annual report and accounts 2006 16
consolidated profit and loss account
for the year ended 31 december 2006
70011 pre new  17307  700 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 10102 9832 7184 7 381
investments 10 – – 6102 5411
10974 10369 13286 12792
current assets
stocks 11 5872 5943 2285 2000
debtors due within one year 12 7 571 6624 3957 4024
cash at bank and in hand 296 236 1 3
13739 12803 6243 6027
creditors amounts falling due within one year
bank overdrafts 14 1434 1758 3376 3108
creditors 13 8343 8688 5517 6937
9777 10446 8893 10045
net current assetsliabilities 3962 2357 2651 4018
total assets less current liabilities 14936 12726 10636 8774
creditors amounts falling due after more than one year 14 2713 – 2375 –
provision for liabilities and charges 16 – 28 – –
net assets excluding net pension liability 12223 12698 8261 8774
net pension liability 24 4449 4858 – –
net assets 7 774 7840 8261 8774
capital and reserves
called up equity share capital 17 1440 1432 1440 1432
share premium account 18 4233 4184 4233 4184
capital redemption reserve 19 88 88 88 88
profit and loss account 20 2013 2136 2500 3070
equity shareholders’ funds 21 7 774 7840 8261 8774
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  17307  700 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 1683 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 outflowinflow from acquisitions and disposals 569 313
equity dividends paid 1022 956
net cash outflow before financing 2377 517
financing
loans drawn down c 3392 –
loans repaid c 689 1045
equity share capital subscribed 58 166
net cash inflowoutflow from financing 2761 879
increasedecrease in cash in the year b 384 1396
stadium group plc
annual report and accounts 2006 18
consolidated cash flow statement
for the year ended 31 december 2006
70011 pre new  17307  700 am  page 18 a net cash inflow from operating activities
2006 2005
£000’s £000’s
operating profit 2275 2601
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 1092 1237
decreaseincrease in stocks 169 2096
increase in debtors 715 520
decreaseincrease 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 1758 324 1434
1522 384 1138
loans due within one year 542 10 532
loans due after more than one year – 2713 2713
2064 2319 4383
c reconciliation of net cash flow to movement in net debt
2006 2005
£000’s £000’s
increasedecrease in cash in the year 384 1396
net cash inflowoutflow from financing 2703 1045
movement in net debt resulting from cash flows 2319 351
stadium group plc
19 annual report and accounts 2006
consolidated cash flow statement
for the year ended 31 december 2006
70011 pre new  17307  700 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 1025
fixtures and equipment 1025
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  17307  700 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 multiemployer 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  17307  700 am  page 21 1turnover
2006 2005
a by origin £000’s £000’s
electronics – manufactured in asia 21262 20228
– manufactured in uk 6693 6227
27 955 26455
branded plastics – uk 10597 10060
38552 36515
2006 2005
electronics plastics total electronics plastics total
b by destination £000’s £000’s £000’s £000’s £000’s £000’s
uk 14164 10054 24218 13470 9575 23045
europe 2189 460 2649 2774 440 3214
asia 4205 15 4220 4998 – 4998
americas 4767 – 4767 3189 – 3189
other 2630 68 2698 2024 45 2069
27 955 10597 38552 26455 10060 36515
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 14707 10597 25304 10973 10060 21033
industrial 9973 – 9973 9829 – 9829
automotive 3078 – 3078 4751 – 4751
telecom 197 – 197 902 – 902
27 955 10597 38552 26455 10060 36515
2 segment information
operating profit net assets
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
electronics 1873 2173 8383 8078
branded plastics 848 871 4485 4057
group
net pension liability – – 4449 4858
exceptional operating expenses – 161 – –
goodwill amortisation electronics 148 132 872 537
other 298 150 1517 26
446 443 5094 4295
t otal 2275 2601 7 774 7840
stadium group plc
notes to the financial statements
stadium group plc 
annual report and accounts 2006 22
70011 notes new  17307  656 am  page 22 3 profit on ordinary activities before taxation
2006 2005
£000’s £000’s
a net operating expenses
distribution costs 2006 £5000 in acquired entity 1498 1437
administrative expenses 2006 £122000 in acquired entity 5149 5205
operating lease income 2006 £nil in acquired entity 429 412
6218 6230
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 chargingcrediting
auditors’ remuneration
for audit services including £25000 in respect of the company 2005 £30000 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 1286 1146
interest on pension scheme liabilities 1298 1296
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
1404 1620
aggregate payroll costs were as follows £000’s £000’s
wages and salaries 7 353 7094
social security costs 462 438
pension costs note 24 285 209
8100 77 41
stadium group plc
23 annual report and accounts 2006
70011 notes new  17307  656 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 £43000 2005 £36000 the accrued pension of the highest paid
director was £58000 2005 £53000
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 2353 2637
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  17307  656 am  page 24 7 dividends
2006 2005
equity £000’s £000’s
ordinary dividends paid
2005 final dividend at 24p per share 2004 225p 691 641
2006 interim dividend at 115p per share 2005 110p 331 315
1022 956
the board proposes to pay a 2006 final dividend of 245p per share 2005 24p on 8 may 2007 to shareholders
on the register on 13 april 2007  amounting to £706000 2005 £687 000
8 intangible fixed assets
group goodwill
cost £000’s
at 1 january 2006 8016
acquired during the year note 22 484
at 31 december 2006 8500
amortisation
at 1 january 2006 7480
charge for year 148
at 31 december 2006 7628
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 10343 12807 2500 25650
additions 892 710 81 1683
acquisition 9 97 101 207
disposals 392 391 5 788
exchange 59 356 104 519
at 31 december 2006 10793 12867 2573 26233
depreciation
at 1 january 2006 3064 10665 2089 15818
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 3219 10679 2233 16131
nbv
nbv at 31 december 2006 7 574 2188 340 10102
nbv at 1 january 2006 7 279 2142 411 9832
stadium group plc
25 annual report and accounts 2006
70011 notes new  17307  656 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 9506 4185 999 14690
additions – 176 29 205
disposals – 375 – 375
at 31 december 2006 9506 3986 1028 14520
depreciation
at 1 january 2006 2619 3819 871 7309
charge in year 188 166 46 400
disposals – 373 – 373
at 31 december 2006 2807 3612 917 7336
nbv
nbv at 31 december 2006 6699 374 111 7 184
nbv at 1 january 2006 6887 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 5411 5411
acquired during the year  691 –
at 31 december 2006 6102 5411
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  17307  656 am  page 26 11 stocks
group company
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
raw materials and consumables 2772 3226 565 382
work in progress 650 465 384 204
finished goods and goods for resale 2450 2252 1336 1414
5872 5943 2285 2000
12 debtors
group company
2006 2005 2006 2005
£000’s £000’s £000’s £000’s
amounts due within one year
trade debtors 6398 6299 2083 2135
amounts due from group companies – – 1860 1784
other debtors 438 72 – –
prepayments and accrued income 735 253 14 105
7 571 6624 3957 4024
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 4899 4592 959 963
amounts owed to group companies – – 3169 3893
corporation tax payable 188 485 – 230
tax and social security 523 413 379 306
other creditors 434 434 28 21
accruals and deferred income 1767 2222 482 982
8343 8688 5517 6937
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 2713 – 2375 –
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  17307  656 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 
£2482000 2005 £4150000 of which £1434000 was being used 2005 £1758000
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 1966 1048 2300 2392
in more than 1 year but not more than 2 years 533 – ––
in more than 2 years but not more than 5 years 1612 – ––
in more than 5 years 568 – ––
4679 1048 2300 2392
stadium group plc
notes to the financial statements continued
stadium group plc 
annual report and accounts 2006 28
70011 notes new  17307  656 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 £503000 2005 £542000
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 1966 1966 2300 2300
bank loans repayable after more than one year 2713 2713 ––
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 1907 2082 – –
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 £1367 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
40140000 ordinary shares of 5p each 2007 2007
allotted called up and fully paid
1 january 2006 28639698 ordinary shares of 5p each 1432 1412
issued during the year 165000 2005 415000 ordinary shares of 5p each 8 20
31 december 2006 28804698 ordinary shares of 5p each 1440 1432
stadium group plc
29 annual report and accounts 2006
70011 notes new  17307  656 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 10500 21 march 2000  21 march 2007 1385p
31 march 1998 30000 31 march 2001  31 march 2008 1725p
19 october 1998 10000 19 october 2001  19 october 2008 1505p
29 march 1999 34000 29 march 2002  29 march 2009 1025p
10 april 2000 7 500 10 april 2003  10 april 2010 59p
31 december 2002 1410600 31 december 2007  31 december 2012 35p
17 march 2004 330000 17 march 2007  17 march 2014 785p
4 april 2005 379500 4 april 2008  4 april 2015 855p
18 share premium account
2006 2005
group  group 
company company
£000’s £000’s
balance at 1 january 4184 4038
165000 shares issued at 35 pence each 
2005 415000 shares at between 35 and 59 pence each 49 146
balance at 31 december 4233 4184
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 2136 3070
total net gainslosses for the year 829 168
share option costs recognised 70 70
dividends received – 550
dividends paid 1022 1022
retained profits at 31 december 2006 2013 2500
at 31 december 2006 accumulated goodwill and costs arising on acquisitions eliminated against reserves
amounted to £4076000 2005 £4076000
the loss for the year dealt with in the accounts of the holding company amounted to £475000 2005 £620000
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  17307  656 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
profitloss for the financial year 2012 2155 168 620
dividends received – – 550 –
dividends paid 1022 956 1022 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 1512 513 1756
equity shareholders’ funds at beginning of year 7 840 6328 8774 10530
equity shareholders’ funds at end of year 7 774 7 840 8261 8774
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  17307  656 am  page 31 23 earnings per share
the calculation of basic earnings per share is based on the profit for the financial year of £2012000 
2005 £2155000 and the weighted average number of ordinary shares in issue during the year of 28755369
2005 28537 013
diluted earnings per share reflect dilutive options granted resulting in a weighted average number of 29383301
ordinary shares 2005 29450658 and profit for the financial year before deducting share option costs 
of £2082000
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 1820 63p 2169 7 6p
goodwill amortisation 148 05p 132 05p
exceptional items net of taxation 340 12p 118 05p
basic earnings per share 2012 7 0p 2155 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 £1261000 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 £60000 2005 £68000
stadium group plc
notes to the financial statements continued
stadium group plc 
annual report and accounts 2006 32
70011 notes new  17307  656 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 52 48 54 56 54
salary increases 30 28 28 28 23
inflation 30 28 28 28 23
pension increases 30 25 25 25 23
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 10704 7 9 9868 77 9125 78 8104 79 7871 83
– bonds 8071 49 8192 44 5887 49 4356 51 3240 54
– others 3606 7 8 2085 77 1708 78 1441 78 1344 40
22381 20145 16720 13901 12455 
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 22381 20145 16720 13901 12455
present value of liabilities 28737 27 085 24275 23332 22428
scheme deficit 6356 6940 7 555 9431 9973
related deferred tax asset 1907 2082 2267 2829 2992
net pension liability 4449 4858 5288 6602 6981
the movement in deficit before deferred tax during the year comprised
2006 2005
£000’s £000’s
deficit in the scheme at 1 january 6940 7 555
current service costs 225 141
curtailment 87 –
contributions 1261 1378
net finance cost 12 150
actuarial loss 353 472
deficit in the scheme at 31 december 6356 6940
stadium group plc
33 annual report and accounts 2006
70011 notes new  17307  656 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 1884
experience gains and losses on scheme liabilities 100 210
change in assumptions underlying the present value
of scheme liabilities 1245 2146
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 1884 682 805 3155
 of scheme assets 4 11 4 6 25
experience gainloss 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 gainloss 
recognised in strgl
amount £000’s 298 331 222 347 5163
 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  17307  656 am  page 34 2002 2003 2004 2005 2006
£000’s £000’s £000’s £000’s £000’s
turnover
1
35375 34875 33801 36515 38552
operating profit
1
1615 2278 2655 2894 2423
discontinued activities 366 – – – –
exceptional items 2113 111 202 169 340
goodwill amortisation and impairment 132 132 132 132 148
interest payable 141 341 342 294 262
profitloss before taxation 1137 1916 1979 2637 2353
earnings per share
1
40p 53p 7 2p 7 6p 63p
ordinary dividend per share 28p 29p 325p 35p 36p
interest cover
1
87x 150x 129x 102x 92x
dividend cover
1
1 4x 1 8x 22x 22x 19x
fixed assets 12127 11019 10801 10369 10974
working capital 4181 2688 2449 442 5632
bank borrowings net 4525 1585 1581 2064 4383
other liabilities 329 249 53 28 –
net assets before net pension liability 11454 11873 11616 12698 12223
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 6981 6602 5288 4858 4449

1
preexceptional 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  17307  656 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 am 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 245 pence per ordinary share payable on 8 may 2007 to shareholders on the register on 
13 april 2007 
resolution 3
to reelect mr k k verma as a director
resolution 4
to reelect 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 891 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 subparagraph i of this resolution of equity securities up to an
aggregate nominal value of £72000 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  17307  656 am  page 36 resolution 7 special resolution
to generally and unconditionally authorise the company to make market purchases within the meaning of section
1633 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 4320000 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 prorata to existing shareholders
this power is limited to allotments in connection with a rights issue and otherwise to 1440235 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  17307  656 am  page 37 stadium group plc
shareholder notes
stadium group plc 
annual report and accounts 2006 38
70011 notes new  17307  656 am  page 38 stadium group plc
39 annual report and accounts 2006
70011 notes new  17307  656 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  17307  656 am  page 40 world class technology and service
stadium group plc
70011 cover new  17307  659 am  page 4 stadium group plc
stephen house
brenda road
hartlepool  ts25 2bq
wwwstadiumcouk
70011 cover new  17307  658 am  page 1


Summary:
 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 buildtoprint 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 acdc converters 
dcdc converters dcac 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 overmoulding
● 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  17307  700 am  page 3