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Stadium - Buys Stontronics in oversubscribed placing

September 2015

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SDM
  • Price:
  • 124.5p
Stadium was another of our NAPS to show a clean pair of heels after paying £6.5m for Stontronics, a UK-based electronics manufacturer, together with an associated placing at 110p to raise £6m.Reading-based Stontronics is a distributor and manufacturer of transformers, adaptors and power supply units and has been growing at a low double digit rate in the past few years. In the year to 30 September 2014 it made an operating profit of £0.61m on sales of £5m.Stontronics' business is highly complementary to Stadium’s existing power business, with little overlap between products and customer bases. The existing business is more weighted towards customised products with little distribution strength, ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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