Solid State backs outlook underpinned by rebuilt order book, pipeline

Solid State PLC on Monday said an improved financial performance in the first half of the financial year reflected strong demand in the defence and security sector.

The electronics firm, which supplies components to customers in commercial, industrial and defence markets, said pretax profit more than trebled to £3.8 million in the six months to September from £1.2 million the year prior.

Revenue increased by 39% to £85.7 million from £61.8 million, with operating profit margin up to 5.3% from 3.0%.

Diluted earnings per share improved to 5.0 pence from 1.7p, and the interim dividend was boosted 11% to 0.92p per share from 0.83p.

Solid State said order intake from defence and security customers remains robust with ongoing demand from multiple tier 1 customers, and noted strong demand and order intake for battery products with multiple autonomous applications.

‘The significantly improved trading performance in the first half of the year reflects the benefits of our targeted market sector strategy, where we have had strong demand in the defence and security sector including strong shipments of communications products,’ commented Chair Nigel Rogers.

The open order book at September 30 of £87.3 million, up from £76.6 million the year prior, has ‘rebuilt’ to £97.0 million on November 30, which, ‘combined with a strong prospect pipeline, gives the directors confidence in meeting full year consensus analyst expectations’, the firm said in a statement.

Solid State put market expectations for full-year revenue at £145.2 million and adjusted pretax profit at £7.2 million, which would be up from £125.1 million and £5.0 million in the financial year to March 2025.

Shares in Solid State were down 1.8% at 140.00p each in London early Monday afternoon.

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