In its preliminary results issued yesterday, the firm said its pre-tax profit in the year to the end of 2012 was £1.77m compared to £3.96m in 2011.
The firm is a specialist supplier of electronics and manufacturing services and has bases across the UK and China.
Revenues were also down from £44.94m to £40.99m, despite a one-off sale of the business’s property in Hong Kong, which brought in a standalone profit of £2.4m.
The company put this down to ongoing difficulties in market conditions in the last half of 2012.
However, the decision to close it Rugby facility and keep its Hartlepool facility open means Stadium will spend more money on operations in the North East as a result.
Chief executive Steve Phipson said the Hartlepool-headquartered company had achieved the objectives it set out in 2011, with the acquisition of IGT Industries in September, last year, and the consolidation of its operations in Asia to mainland China.
He said: “The sector we’re in fell back 25% across the UK as lots of competitors squabbled for business. Our market only fell by 11% so we were pleased with our performance overall.
“We decided to close our Rugby facility because we only needed one site in the UK going forward and our Hartlepool base is far more cost-effective. There are a lot more resources and it’s a bigger facility. It’s also a lot easier to recruit good engineering personnel in the North East.
“Because many of the workers at our Rugby facility understandably don’t want to relocate, we will be growing our workforce by 30 in the North East and employing locally. So far, we’ve hired 10 workers.
“We’ve already invested in the North East as we plan to take on more work. We need to make the site ready for machines that will be coming up from Rugby. This whole programme has cost £1.5m as a result of closing Rugby and investing in Hartlepool.”
Looking ahead, Stadium said after a tough trading year it was well positioned to compete effectively in its traditional iEMS markets and pursue new growth opportunities within its technology-led businesses and other possible acquisition opportunities.
Chairman Nick Brayshaw said: “Trading in the first few months of the year has been challenging given a continuation of the difficult market conditions experienced in the latter part of 2012.
“Going forward, our self-help programmes will deliver leaner business structures and improve operational efficiency, which will offset the impact of weak or zero growth.
“The board remains committed to the growth strategy of investing in technology led businesses where we can leverage our manufacturing know how and exploit cross-selling opportunities, and will continue to explore suitable opportunities to drive this strategy forward. Consequently, the board remains confident in its strategy for the future and the group’s prospects for the current year.”