The technology giant declared that group revenues increased 12.7% between January and June, to £27.4m, with sales at its Technology Products arm rising 20.9% to £16.8m.  The result propelled adjusted pre-tax profit 13.6% higher, to £1.8m.

Revenues from Technology Products now equate to 61% of the group total versus 57% last year, and a record order book suggests that Stadium should continue enjoying blistering revenues growth. This had grown 19% from the end of last year to £30.8m.

On the march

Today’s results prompted a cheery response from chairman Nick Brayshaw, who noted that “we are very pleased with our performance in the first half of the year and the progress that we’ve made in establishing our position as a successful design-led technology business.”

He added: “We believe that our operating model, focused around strategically located regional design centres, manufacturing centres of excellence and regional fulfilment centres, will allow us to deliver further accelerated growth going forward.” And he said the continued positive momentum seen in the first half is further underpinned by its record order book and strengthening pipeline of new design wins which makes it confident for the full year outlook and beyond.

City brokers agree that the earnings picture over at Stadium is looking  pretty rosy, and have pencilled in bottom-line rises of 17% and 21% for 2017 and 2018 respectively.

And these projections make the Reading business brilliant value for money, at least on paper. A forward P/E ratio of 11 times falls below the widely-considered value benchmark of 15 times, while a PEG rating comes in at a bargain-basement 0.6.

Those seeking chunky dividend growth should also give Stadium more than a cursory glance. The company is expected to lift last year’s 2.9p per share dividend to 3.1p this year, and again to 3.3p in 2018. As a consequence, investors can lock onto yields of 2.6% and 2.8%

I reckon dip buyers should take a serious look at Stadium right now, and particularly after today’s share price decline.

Pipe dreams

Polypipe Group (LSE: PLP) is another London-quoted stock expected to deliver handsome earnings and dividend growth in the medium term.

In 2017 the number crunchers have pencilled in profits growth of 8%, and a similar rise is anticipated in the following 12-month period. And these forecasts make the piping and ventilation specialist a decent value bet, Polypipe sporting a prospective P/E ratio of just 14.9 times.

Meanwhile on the income front, the Doncaster business is predicted to lift last year’s 10.1p per share reward to 10.8p in 2017 and to 11.7p in 2018. As a result, share pickers can enjoy yields of 2.6% and 2.8% for 2017 and 2018.

Polypipe continues to outperform the broader market, and saw revenues in the UK soar 6.8% between January and June. And with infrastructure investment predicted to improve in the months ahead, and the domestic new-build market also remaining pretty robust, I expect earnings at the business to keep on booming.

The post 2 value stocks for growth and dividend chasers to seek out appeared first on The Twelfth Magpie.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Despite this, there are still a number of shares which could offer high growth potential at a reasonable price. Here are two such companies which appear to do just that.

Impressive performance

Reporting on Monday was supplier of connectivity solutions, power supplies and interface displays, Stadium Group (LSE: SDM). The company announced a solid first-half performance for the year to date. It has traded in line with expectations, and is ahead of H1 from the previous year. Its order book has continued to grow, and now stands at above £28m. This is up from £25.8m at the year end, with the company remaining confident about delivering further progress in the current year.

Looking ahead, Stadium Group is forecast to record a rise in its bottom line of 17% in the current year. It is due to follow this up with growth of 21% next year, which means its earnings could be as much as 42% higher in 2018 than they were in 2016. Even though this may be the case, the company continues to trade on a relatively low valuation. For example, it has a price-to-earnings growth (PEG) ratio of just 0.5.

This suggests that there could be substantial upside potential over the medium term, and that the company’s 54% share price rise since the start of the year may not be the end of its current run. As such, now could be the perfect time to buy it for the long term.

Purple patch

Over the next two years, metrology specialist Renishaw (LSE: RSW) is forecast to report a vast improvement on its recent financial performance. Having delivered a 43% decline in earnings last year, its bottom line is forecast to rise by 27% in the current year. This is set to be followed by further growth of 13% next year, which has the potential to drastically improve investor sentiment even after a 45% rise in its share price since the turn of the year.

Despite double-digit growth being forecast, Renishaw trades on a PEG ratio of only 1.1. This suggests that the company has a sufficiently wide margin of safety to merit investment at the present time.

Certainly, the company has proven to be relatively cyclical in the past. And there is a chance its outlook will be downgraded. However, with a fundamentally sound business and excellent strategy, it looks set to deliver rising profitability and upside potential. As well as this, its dividends are covered 2.4 times by profit, which suggests its dividend yield of 1.4% could move higher over the medium term.

The post 2 double-digit growth stocks that could help you retire early appeared first on The Twelfth Magpie.

More reading

• Back below 500p, is it time to consider BP shares again?
• Is there any value left in Lloyds shares now they’re over £1?
• How much would I need in a Stocks and Shares ISA to target £19,036 a year in second income?
• After huge new nuclear deals, are Rolls-Royce’s sub-£15 shares set to power higher?
• This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?

Peter Stephens has no position in any shares mentioned. The Motley Fool UK has recommended Renishaw. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Shares in Neil Woodford-backed Circassia Pharmaceuticals (LSE: CIR) fell by almost 60% in one day this week, after the firm said its cat allergy treatment had failed a key trial.

In the firm’s latest study, its cat allergy immunotherapy treatment was found to reduce allergy symptoms by almost 60%. The problem is that patients who received a placebo instead saw an almost identical reduction in their symptoms. In my view, this suggests that many patients’ allergies are psychosomatic, rather than physical. The potential market for this product could be limited.

You may not agree with my conclusions, but what is clear is that Circassia shares were priced for a big success. Circassia’s market cap — after this week’s 60% drop — is still £300m. Although the firm currently has net cash of £136m, this is down from £203m at the end of last year.

Circassia appears to be burning through cash quite quickly. The firm is expected to report a loss of £68m this year. As cash continues to fall, I expect the share price to follow.

In my opinion, Circassia is both risky and expensive. I wouldn’t bet on a rebound.

Customer loss will hit results

As I write, today’s biggest faller is small cap electronics firm Stadium Group (LSE: SDM), which is down 27%.

The firm’s shares fell sharply when markets opened this morning, after Stadium said that its wireless division had lost a major customer. Stadium also said that sales in the group’s electronic manufacturing services division were falling faster than expected. This part of the business is being wound down as Stadium shifts its focus to design work.

As a result of the customer loss, Stadium now expects its full-year results to be below market expectations.

Broker forecasts were suggesting that Stadium would report earnings of 10.9p per share this year. I suspect these forecasts will be cut by at least 10% after today, suggesting a figure of about 9.8p. With the shares now trading at 78p, I estimate Stadium has a 2016 forecast P/E of 8.

Debt levels are low and if last year’s 2.7p dividend is maintained, Stadium could offer a dividend yield of 3.5%. There’s definite turnaround potential here, but I’d be cautious about investing until Stadium shows stronger signs of growth.

Quality, but too pricey?

Photo booth operator Photo-Me International (LSE: PHTM) slumped on Tuesday after the firm said that the timing of the next stage of a major ID card project in Japan was uncertain.

This overshadowed a record set of results for the firm, which reported record pre-tax profits of £40.1m and a 20% dividend increase to 5.86p per share. Photo-Me also announced a special dividend of 2.815p per share, which will be paid out of the group’s £62m net cash balance.

My view is that Photo-Me is a quality business, despite this week’s falls. The firm maintained its 21.5% operating margin last year and offers an ordinary dividend yield of 4.3%. My only reservation is that the outlook for earnings growth looks a bit uncertain.

On that basis, the stock looks quite fully valued, with a forecast P/E of about 16. I think there’s probably better value elsewhere.

The post Can this week’s big fallers bounce back? Circassia Pharmaceuticals plc (-59%), Stadium Group plc (-27%) & Photo-Me International plc (-11%) appeared first on The Twelfth Magpie.

More reading

• Back below 500p, is it time to consider BP shares again?
• Is there any value left in Lloyds shares now they’re over £1?
• How much would I need in a Stocks and Shares ISA to target £19,036 a year in second income?
• After huge new nuclear deals, are Rolls-Royce’s sub-£15 shares set to power higher?
• This 7.5% yielding passive income share is at a 13-year low! Time to consider buying?

Roland Head has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.