Stadium’s share price has suffered in 2016, presumably due to its perceived links to China. However, the Group has little domestic China revenue and is not, in our view, reliant on China to drive the success of its nascent integrated high-tech product offering. This is reflected in today’s positive update which confirms that trading is in line with expectations and that the strong trading at the end of the year has continued into FY16. We expect the share price to react favourably given the current P/E of 10.4x FY15 earnings and look forward to further detail with the final results in March.
