BOSSES at a technology company have hailed the impact of a transformation programme after increased demand pushed profits higher.

Stadium Group officials say the firm is “entering the next phase of growth” on a strong financial footing, with its Hartlepool factory primed to play a key role in its expansion.

They also highlighted the anticipated impact of a previously-announced £45.8m takeover offer from TT Electronics, which they believe will “broaden opportunities for our people, customers and products.”

Stadium was originally founded as a motorcycle helmet company but has been transformed in recent years from a solely electronic manufacturing services operator to a design-led business, with black box systems for insurers to assess drivers’ safety part of its repertoire.

According to the company’s results for December 31, released on Tuesday, March 13, those changes have continued to have an impact, with revenues up 15 per cent on a year ago at £61.1m and reported pre-tax profit 81 per cent higher at £4m.

Stronger demand fuelled the increases, with sales across its technology products division 21 per cent better off at £38.5m and six per cent advanced in its electronic assembly operation at £22.6m.

The changes mean the technology products arm now accounts for more than 60 per cent of group sales.

Chief executive Charlie Peppiatt said the latter, overseen at its Hartlepool plant, will remain integral to its future successes, revealing capacity remains available at the base to support expansion plans.

He also revealed the site, which Stadium has pumped around £2m into over the last two years to create what officials describe as a European manufacturing centre of excellence, is devoting more than half of activities to support its technology products arm.

He also played down the effect of pricing pressures on its progress.

“We have successfully established a business with two distinct, but interconnected, divisions.

“Electronic assemblies remain a key element of our sales strategy and our Hartlepool manufacturing facility has significant available capacity to service future growth.

“The division remains subject to continued price pressure, due to competition and component availability in the marketplace, however, the team has worked hard to execute the highest standards of supply chain management and operational excellence to offset these issues.”

Acclaiming TT Electronics’ approach, Mr Peppiatt said the deal will be a positive step forward, even if it might take away some of the focus from its latest results.

He added: “Much of our analysis of the outlook for our business will be overshadowed by the offer from TT Electronics.

“We are confident our strategy of becoming a high-growth design-led technology business is valid, and we believe it is the delivery of this to date that has attracted interest.”

Chairman Nick Brayshaw added: “We are now entering the next phase of growth following the offer from TT Electronics, which we believe reflects the high-quality of the business, its people and future prospects.”

Speaking last month, TT Electronics’ officials played down talk of job losses in the takeover, instead saying they want to take advantage of the “skills and experience” of Stadium’s workforce, which extends beyond the 100-mark in the North-East.

They said job cuts are planned to be less than three per cent, of which some are earmarked for US operations.

The Northern Echo understands the deal could be completed by mid-summer, with TT, which has a base on the outskirts of Bedlington, Northumberland, saying it will bolster its presence in the medical, aerospace and defence sectors, improve research and development work and bring products more quickly to market.

Stadium last year revealed a £2.8m deal to take on the business and assets of PowerPax UK.

Known for serving the industrial power supply market by making and distributing a wide range of goods, such as battery chargers and LED products, officials at the time said it would strengthen Stadium’s power division by adding complementary products and customers.

The agreement followed a £750,000 deal for Cable Power Limited, which was also bought to add value to Stadium’s power division and a move for power supply unit and transformer maker Stontronics.