REG - Solid State PLC - $25m Communications Equipment Order

Solid StateAnnouncement

11/03/2025 07:15

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RNS Number : 0845A  Solid State PLC  11 March 2025

 

11 March 2025

 

Solid State plc

("Solid State", the "Group" or the "Company")

$25m Communications Equipment Order

 

Solid State plc (AIM: SOLI), the specialist value added component supplier and
design-in manufacturer of computing, power, and communications products,
announces the receipt of a $25m order for communications equipment under a
prominent defence order programme, to be delivered in the next financial year
ending 31 March 2026 (FY25/26).

This order was previously expected to be received and delivered in FY24/25,
however as announced in November 2024, it was put on hold following the change
in the UK Government and pending the outcome of the Strategic Defence Review.
Whilst the defence review is expected to report in the Spring, this order has
been approved by exception.

The Group has continued confidence in its prospects within the defence &
security sector, notwithstanding the interrupted order cycle of this
particular programme, and has dedicated resources targeting further contract
opportunities.

Given recent geo-political developments, and in light of this order, the
Company intends to increase investment in the Group's production capabilities
in both the USA and the UK to accelerate medium term organic growth
opportunities within the defence & security sector.

 

Commenting on the Order, Gary Marsh, Chief Executive Officer, said:

"At the time we announced the delay in the original order in November 2024,
due to the pause in defence expenditure resulting from the Strategic Defence
Review, we were confident that the disruption would be temporary.

"Despite the ongoing nature of the Strategic Defence Review, which is not
expected to conclude for some months, this order has been approved for a
largely comparable equipment list to the original postponed order.  This
confirms the strategic need for Solid State's technology, which is likely to
heighten given global security concerns and Europe's further commitment to
strengthen its defence capability.

"We welcome this large order which improves our earnings prospects for FY25/26
and will enable us to increase investment and support organic growth across
the business. The Company expects to announce a trading update in relation to
the current financial year in April 2025 and remains confident in achieving
market expectations for FY24/25."

 

The Company considers the average of the most recently published research
forecasts prior to this announcement by all providers - Cavendish Capital
Markets Ltd and Zeus Capital Ltd to represent market expectations for Solid
State.

 

 Market Expectations          FY24/25
 Revenue                      £123.0m
 Adjusted profit before tax*  £4.0m

 

* Adjustments relate to IFRS 3 acquisition amortisation, share based payments
charges and non-recurring charges in respect of re-organisation
cost/acquisition costs and fair value adjustments.

 

Investor Site Visits to Head Office in Redditch

Solid State holds site visits to its head office in Redditch where operations
from both the Systems and Components divisions can be seen.  Interested
investors should contact solidstate@walbrookpr.com
(mailto:solidstate@walbrookpr.com) .

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

For further information please contact:

 

 Solid State plc                                            Via Walbrook

 Gary Marsh - Chief Executive

 Peter James - Group Finance Director
 Cavendish Capital Markets Limited                          020 7220 0500

 (Nominated Adviser & Broker)

 Adrian Hadden / Callum Davidson (Corporate Finance)

 Jasper Berry / Tim Redfern (Sales / ECM)
 Walbrook PR (Financial PR)                                 020 7933 8780

 Tom Cooper / Nick Rome / Joe Walker                        0797 122 1972

                                                            solidstate@walbrookpr.com (mailto:solidstate@walbrookpr.com)

 

Analyst Research Reports: For further analyst information and research see the
Solid State plc website: https://solidstateplc.com/research/
(https://urldefense.proofpoint.com/v2/url?u=https-3A__solidstateplc.com_research_&d=DwMFAg&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=JmX-gQVke87P3UDBxQzNglNm9FfzH5yZtIa_SmElSS4&s=ib8r3ul2tCaEvJ39SnR1LT7nCa7gAcRQzgO-kNoyZoM&e=)

 

Notes to Editors:

Solid State plc (AIM: SOLI) is a leading value-added electronics group
supplying industrial and defence markets with durable components, assemblies
and manufactured systems for use in critical applications, with a particular
emphasis on harsh operational environments. Solid State's products are found
around the world, from the ocean floor and into space, ensuring the smooth
operation of systems that augment our everyday lives.

The Company has a core focus on industrial and ruggedised computing, battery
power solutions, antennas, secure radio systems, imaging technologies, and
electronic components & displays.

Operating through two divisions (Systems and Components) the Group thrives on
complex engineering challenges, often requiring design-in support and
component sourcing. Serving a wide range of industries, with a particular
focus on defence, energy production, aerospace, environmental, oceanographic,
industrial, robotics, medical, life sciences, and transportation, the Solid
State trading brands have become synonymous with quality and reliability. The
Group operates under the brands of Steatite, Solsta, Custom Power, Pacer,
Active Silicon, Gateway, Durakool and Q-Par.

Solid State plc is headquartered in Redditch, UK, and employs over 400 people
around the world. The business has seven production facilities in the UK and
two in the USA. In total, including all office locations, the Group operates
from 14 national and international sites.

Solid State was established in 1971 and admitted to AIM in June 1996.  The
Group has grown organically and by acquisition - having made five acquisitions
in the last five years.

Take a look at the videos below for more insight into the Solid State Group.

Introduction to Solid State - https://youtu.be/1M_Q_B1mYic
(https://urldefense.proofpoint.com/v2/url?u=https-3A__youtu.be_1M-5FQ-5FB1mYic&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=3dW1DsO04w3fOD5H-7rw_kFgcxacpqn1XcdwanaeIt0GZ7CA-Ex3GbIRbrY8H0Qp&s=At43cSgB_l2_aLDoWAG1btwtdQsj0fGFEOvZuRER61Y&e=)

Why invest in Solid State? - https://youtu.be/ShmTz6005ws
(https://urldefense.proofpoint.com/v2/url?u=https-3A__youtu.be_ShmTz6005ws&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=3dW1DsO04w3fOD5H-7rw_kFgcxacpqn1XcdwanaeIt0GZ7CA-Ex3GbIRbrY8H0Qp&s=BRSABtV1H6lx3GEpH8ZgxTINGT_PRgrBvEbFa-O11Yg&e=)

 

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