TIDMSOLI
RNS Number : 7365P
Solid State PLC
21 October 2021
Solid State plc
( "Solid State", the " Group " or the "Company" )
Trading Update, Notice of Results, Analyst Briefing
& Investor Presentation
Solid State plc (AIM: SOLI), the specialist value added
component supplier and design-in manufacturer of computing, power,
and communications products, announces a trading update for the six
months to 30 September 2021 ("the Period").
Trading Update:
Solid State expects to announce revenues for the Period of
approximately GBP39.0m (2020: GBP33.1m) and adjusted profit before
tax for the Period of approximately GBP3.25m (2020: GBP2.55m),
reflecting strong underlying trading and the contributions from the
Willow and Active Silicon acquisitions made in March 2021, which
have exceeded management's expectations. The Board is confident
that the Company will meet adjusted profit before tax consensus
expectations for the year. There is potential upside in the second
half of the year, delivery of which is dependent upon careful
management of the constraints imposed by supply chain
challenges.
Reported revenue growth was slightly reduced as a result of a
weaker US dollar, although the profit effect was mitigated by a
natural hedge from component purchases also denominated in US
dollars, resulting in an enhanced gross margin percentage. The
Company has benefitted from a good project mix, Group-wide
initiatives to develop own brand products, value-added lines of
business, and careful cost management, all of which have
contributed to improving operating margins in the Period.
The Group has seen very strong growth in its open order book
primarily due to customers placing longer order schedules to help
manage and mitigate supply chain challenges, and stronger demand in
markets which had previously shown some weakness during the
Pandemic, specifically the energy and aerospace sectors. The open
order book on 30 September 2021 stood at a record level of GBP61.5m
(31 May 2021: GBP51.0m), an increase of 48% on the financial year
end (31 March 2021: GBP41.5m). The lengthening order coverage means
that scheduled orders now span three financial years; FY22 (63%),
FY23 (32%) and into FY24 (5%).
The Company is working hard with customers and suppliers to
manage supply chain challenges. This has resulted in some stocking
at Solid State, requiring investment in working capital, and some
commitments to longer order schedules by both Solid State and its
customers.
Net cash at 30 September 2021 stood at GBP3.3m and the Group
retains banking facilities of GBP7.5m to support capital investment
and future growth.
Solid State continues to pursue its acquisition strategy, with a
healthy acquisition pipeline currently being reviewed.
The Board is pleased with progress in the Period and optimistic
for the prospects for the year as a whole, however mindful of the
broader economic, supply chain and global challenges.
Notice of Results:
Solid State expects to announce its results for the six months
ended 30 September 2021 on Tuesday 7 December 2021.
Analyst Briefing: 9.30 a.m. on Tuesday 7 December 2021
An online briefing for Analysts will be hosted by Gary Marsh,
Chief Executive, and Peter James, Group Finance Director, at 9.30
a.m. on Tuesday 7 December 2021 to review the results and
prospects. Analysts wishing to attend should contact Walbrook PR on
solidstate@walbrookpr.com or on 020 7933 8780.
Investor Results Presentation: 4 p.m. on Thursday 9 December
2021
Gary Marsh, Chief Executive , and Peter James, Group Finance
Director, will hold a presentation to cover the results and
prospects at 4 p.m. on 9 December 2021. The presentation will be
hosted through the digital platform Investor Meet Company.
Investors can sign up to Investor Meet Company for free and add to
meet Solid State plc via the following link
https://www.investormeetcompany.com/solid-state-plc/register-investor
. Investors who have already registered and added to meet the
Company will automatically be invited.
Questions can be submitted pre-event to
solidstate@walbrookpr.com , or in real time during the presentation
via the "Ask a Question" function.
For further information please contact:
Solid State plc Via Walbrook
Gary Marsh - Chief Executive
Peter James - Group Finance Director
WH Ireland (Nominated Adviser & Joint
Broker)
Mike Coe / Sarah Mather (Corporate
Finance)
Jasper Berry (Corporate Broking /
Sales) 020 7220 1666
finnCap (Joint Broker)
Ed Frisby (Corporate Finance)
Rhys Williams / Tim Redfern (Sales
/ ECM) 020 7220 0500
Walbrook PR (Financial PR) 020 7933 8780
Tom Cooper / Nick Rome 0797 122 1972
solidstate@walbrookpr.com
Analyst Research Reports: For further analyst information and
research see the Solid State plc website:
https://solidstateplc.com/research/
Notes to Editors:
Solid State plc (SOLI) is a value added electronics group
supplying commercial, industrial and military markets with durable
components, assemblies and manufactured units for use in specialist
and harsh environments. The Group's mantra is - 'Trusted technology
for demanding applications'. To see an introductory video on the
Group - https://bit.ly/3kzddx7
Operating through two main divisions: Manufacturing (Steatite
& Active Silicon) and Value Added Supplies (Solid State
Supplies, Pacer, Willow Technologies & AEC); the Group
specialises in complex engineering challenges often requiring
design-in support and component sourcing for computing, power,
communications, electronic, electro-mechanical and opto-electronic
products.
Headquartered in Redditch, UK, Solid State employs approximately
300 staff across UK and US, serving specialist markets in
industrial, defence and security, transportation, medical and
energy.
Solid State was established in 1971 and admitted to AIM in June
1996. The Group has grown organically and by acquisition - having
made 12 acquisitions since 2002.
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