A TECHNOLOGY firm’s profits will fall short of expectations after contract delays.

Stadium Group expects “single digit percentage growth” in full-year pre-tax profits following hold-ups with higher-margin projects.

However, the business, based in Hartlepool, says it remains on a strong financial footing overall, with a record order book worth more than £32m.

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A spokesman said: “The board expects single digit percentage growth, which is primarily due to customer delays into 2018 for certain higher-margin technology products projects that had originally been expected to ship before the year end.

“The widely reported global shortage of certain electronic components, particularly memory, integrated circuitry and passive components, has compounded the situation.

“This has also contributed to cost pressures and, despite building our inventory, it has not proved possible to fully mitigate this.

“The delayed sales and increased inventory are expected to result in increased net debt at December 31.

“However, the order book and strong pipeline of newly-awarded projects, provides confidence the company will deliver double-digit revenue and profit before tax growth in the coming year.”

The business was founded as a motorcycle helmet company but is now responsible for designing and making vehicle control panels, wireless devices and electronic displays, with its catalogue including vehicle fleet tracking and black box systems for insurers to assess drivers’ safety.