Good morning! Preliminary results from Solid State (LON:SSP) have been issued for the year ended 31 Mar 2013. This share has been on my watch list for a while, and I last mentioned them on 2 May 2013, concluding that it looked potentially interesting.
Solid State shares have more than 10-bagged in the last 4 years, and the company continues to trade well. At 225p per share the market cap is £15.6m.
As you can see from the Stockopedia excerpt from the StockReport on the right, Solid State scores highly on forecast PE Ratio, and on Dividend Yield, with strong green bars in both cases indicating a high ranking in both its industry (the left hand bar) and the whole market (right hand bar).
Note also that a new feature has been added this week so that if you roll your mouse over these bars in the StockReport, a box giving more details pops up - I like it! (that feature won't work on the picture on the right).
Their results today look good, with turnover up 22% to £31.5m, profit before tax & exceptionals up 17% to £1.87m, and EPS up 12% to 21.8p.
They are acquisitive, so some of that growth might have come from companies bought during the year. This is important, as I've been caught out before over-paying for growth that I assumed was organic, but turned out to be from acquisitions. The difference being of course that an acquisition just bolts on growth on a one-off basis, hence does not justify a higher PE rating once you have included the acquired company's profits in the E bit of the PER calculations.
They seem to have come in slightly ahead of broker consensus EPS (forecast was 21.1p, against 21.8p achieved), putting them on a PER of 10.3. That looks fairly good value to me, although with a bit of debt, and the order book flat against last year, it's difficult to see there being much upside from here in the short term. Maybe 10-20% upside, which doesn't excite me in terms of risk/reward.
Solid State have raised their dividend by 10% to 8p, which is in line with broker consensus forecast dividend.This breaks down as 2.75p interim dividend paid on 28 Jan 2013, and a final dividend of…