ELECTRONICS and plastics group, Stadium, has fallen into the red in the first half of the year.

The Hartlepool company, which employs more than 700 staff, recorded a pre-tax loss of £6.389m for the six months to June, 2001.

Group turnover fell by £10.4m to £37.8m.

In June, the group announced plans to quit the Stock Market and sell its plastics division, which at the moment accounts for half the workforce.

There are believed to be a number of parties interested in taking over the plastics division, but a sale is not imminent.

The losses at the company compare with a £1.67m profit in the same period of last year.

Looking to the rest of the year, chairman Straun Wiley said: "Further progress is expected in implementing the disposal programme, continuing to focus the group's activities and realise shareholder value.

"We remain firmly committed to investing in plant, machinery and product development in our plastics division while opportunities to effect disposal are sought."

He added: "We have concluded a number of major contracts in Asia which will begin to impact on our business in the second half of the year, while the restructuring of our UK manufacturing capacity has led to a significant reduction in costs."

Mr Wiley said continuing progress was being made against a backdrop of deteriorating economic conditions, and the UK officially entering recession in the first half of the year.

Shareholders will receive an interim dividend of 0.95p per share.