REG - Solid State PLC - Interim Results, Analyst Briefing & Investor Pres
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RNS Number : 5302J Solid State PLC 01 December 2025
Solid State plc
("Solid State", the "Group" or the "Company")
Interim 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 its Interim Results for the six months ended 30 September 2025
("First Half", the "Period", or "H1 2025/26").
Trading performance during the six months ended 30 September 2025 was strong,
benefitting from the delivery of a major communications order which more than
offset ongoing softness within the industrial sector. The revenue generated
from these communications programmes arise from close relationships with
commercial partners, and with national and international agencies. These
projects are typically long term in nature and may span several years. Such
contracts typically generate high value revenue with an irregular cadence as
they complete, followed by recurring revenue from both product sales and
through life support.
Headline Revenues in the Period were £85.7m, up 38.6% over the equivalent
prior year period. When, adjusting for the impact of communications sales and
a currency headwind, underlying revenues increased by 3.6%. Accordingly,
adjusted profits before tax were £4.9m. Whilst order intake was slower in H1
2025/26, pleasingly we have seen order intake recover strongly at the
beginning of H2 and the Directors remain confident in meeting consensus market
expectations for FY25/26.
The strong financial performance was overshadowed by the recent sad news that
Gary Marsh, Chief Executive for over twenty years, has died after a short
illness. He has left an enduring legacy. John Macmichael has been appointed
as Interim CEO to lead the business, supported by the Board and senior
management team.
Financial highlights:
H1 2025/26 H1 2024/25 Change
Revenue £85.7m £61.8m 38.6%
Gross margin 31.0% 31.1% -10bps
Operating profit margin 5.3% 3.0% 230bps
Adjusted operating profit margin* 6.5% 5.1% 140bps
Profit before tax £3.8m £1.2m 216.6%
Adjusted profit before tax* £4.9m £2.5m 96.0%
Diluted earnings per share** 5.0p 1.7p** 194.1%
Adjusted diluted earnings per share** 6.5p 3.5p** 85.7%
Interim dividend 0.92p 0.83p 10.8%
Net cash flow from operating activities £4.1m £7.2m -43.1%
Adjusted operating cash conversion 102% 231% -129%
Net debt*** £(7.1)m £(2.0)m +255.0%
Open order book at 30 September £87.3m £76.6m +14.0%
* Adjusted performance metrics are reconciled in note 5, and these metrics
exclude the impact of one-off items, acquisition-related intangible
amortisation, non-recurring tax credits, non-recurring charges in respect of
re-organisation costs, acquisition fees and share option expenses.
** Prior year comparative is restated for the impact of the bonus share issue
in October 2024, see note 6.
*** Net cash / (debt) includes net cash with banks £5.8m (H1 24/25: £8.4m),
bank overdrafts of £1.7m (H1 24/25 £Nil), bank loans of £10.7m (H1 24/25:
£10.4m), deferred consideration of £0.4m (H1 24/25: £Nil) and excludes the
right of use lease liabilities of £5.4m (H1 24/25: £3.7m).
Commercial and operational highlights:
· Enhanced capacity and capabilities through opening new integrated
systems facility, now delivering product and providing opportunities to secure
more premium business and support mid-term growth.
· Secured a £1.65m integrated systems order from a new government
customer attracted by technical capability and capacity.
· Invested in consolidating Active Silicon business into one
facility, enhancing collaboration and operational effectiveness.
· Follow-on international $5.2m IoT contract award from US
franchise line.
· Custom Power & Volklec UK collaboration to deliver a
sovereign, end-to-end energy solution for the UK defence sector.
· Delayed communications programme to NSPA carried over from the
prior year into the Period has seen the Group deliver £23.3m of
communications product revenue to NSPA in H1 2025/26.
· Successful DSEI trade show in London drove strong order intake
for communications technology with increased order intake from multiple
customers and significant new opportunities arising.
Post-Period highlights:
· Order intake from defence and security customers remains robust
with ongoing demand from multiple tier 1 customers.
· Strong demand and order intake for battery products with multiple
autonomous applications.
· Secured a significant contract to deliver communications product
under project CAIN to the British Army, which is a multi-year programme. The
initial order of $10.8m provides a foundation for potentially significant
follow-on revenues. Delivery of the initial systems under this programme is
expected during 2026.
· The open orderbook at 30 September 2025 of £87.3m (H1 24/25:
£76.6m) has rebuilt to £97.0m on 30 November 2025 (30 November 2024:
£85.5m), which, combined with a strong prospect pipeline, gives the Directors
confidence in meeting full year consensus analyst expectations(1).
· Board further strengthened by appointment of Victor Chavez CBE as
Non-Executive Deputy Chairman announced today
Commenting on the results and prospects, Nigel Rogers, Chairman of Solid
State, said:
"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. The Board is confident that ongoing
investment in facilities, capabilities and people will continue building a
strong platform for strategic growth across the Group.
"Industry data indicates that the European electronics market appears to have
been reset to a lower base. The industrial sector is particularly depressed,
and the recovery of the cycle is slow. However, our leading indicators,
including the rate of design activity and new opportunity pipeline, indicate
that there are good grounds to be optimistic as we look forward to 2026 and
beyond. This is reinforced by the improvement in orderbooks since the Period
end.
"The Directors are confident of a return to a growth trajectory, whilst taking
a prudent approach to short term earnings guidance to recognise some
uncertainty on timing."
(1) 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 FY25/26 FY26/27
Revenue £145.2m £149.4m
Adjusted profit before tax* £7.2m £8.0m
Net (debt) / cash (£4.3m) (£2.4m)
Analyst Briefing: 9.30 a.m. today, Monday 1 December 2025
An online briefing for Analysts will be hosted by John Macmichael, Interim
Chief Executive, Peter James, Chief Financial Officer, and Matthew Richards,
Divisional Managing Director (at 9.30 a.m. today, Monday 1 December 2025 to
review the results and prospects. Analysts wishing to attend should contact
Walbrook PR on solidstate@walbrookpr.com or on 020 7933 8780.
Investor Presentation: 2.00 p.m. on Tuesday 2 December 2025
John Macmichael, Interim Chief Executive; Peter James, Group Finance Director,
and Matthew Richards Divisional Managing Director; will hold a presentation to
cover the results and prospects at 2.00 p.m. on Tuesday 2 December 2025. 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
(https://urldefense.proofpoint.com/v2/url?u=https-3A__www.investormeetcompany.com_solid-2Dstate-2Dplc_register-2Dinvestor&d=DwMGaQ&c=euGZstcaTDllvimEN8b7jXrwqOf-v5A_CdpgnVfiiMM&r=05PHl3GHdShYuaCii2fBRpoqaNr9B1d97X09daeosu0&m=J_w1tceU9zzYJ7XKVb7cI6vB50Ub0EkseNW3jQMJXh0&s=3vECInbFqFci5nlddgAz6BmJ10o04LjoiJjqEFyNUW0&e=)
. 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.
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
Nigel Rogers - Chairman
John Macmichael - Interim 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 three divisions (Systems, Power 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 425 people
around the world. The business has seven production facilities in the UK and
one in the USA. In total, including all office locations, the Group operates
from 13 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=)
CHAIRMAN'S REVIEW
Trading performance during the six months ended 30 September 2025 was strong,
benefitting from the delivery of a major communications order which more than
offset ongoing softness within the industrial sector and, to an extent,
headwinds presented by continuing changes in US tariffs.
The revenue generated from these communications products and associated
services arises from close relationships with commercial partners, and with
national and international agencies. These projects are typically long term in
nature and may span several years. Such contracts typically generate high
value revenue with an irregular cadence as they complete, followed by
recurring revenue from both product sales and after sale services.
On a constant currency basis and excluding the impact of the large
communications project, year-on-year revenues are up £2.3m. The strength of
the USD rate has resulted in revenue headwinds in the Period of approximately
2.7%, albeit our natural hedge means the profit impact is substantially lower.
The Group has entered the Second Half with a solid open orderbook of £87.3m
of which >60% is expected to ship in the Second Half, meaning the Board is
confident of meeting full year consensus expectations.
Strategy and progress
The Group has set a goal of growing the underlying "core business" (normalised
for the periodic revenues peaks associated with initial adoption of
communications technology) to deliver 20p of adjusted EPS by 2030.
Solid State's growth strategy combines organic and acquisitive growth to
actively target strategic customers in sectors with high barriers to entry
that require accreditations, long standing credibility, and specialist skills
and experience where our technology adds tangible value. The Group's key
target markets include defence and security ("D&S"), medical, transport,
and industrial automation.
The Group's capabilities and technology remain highly relevant and valuable in
all our target growth sectors and our pipeline of opportunities continues to
develop. Current market dynamics mean that in the near term, we anticipate the
key driver of growth to be within D&S where we have continued to see
strong demand for our design-in engineered technology systems, services and
components.
We organised the Group into three core divisions, delivering focus built on
the core technological and engineering competencies which are aligned to
delivering value to customers in the target markets. Within each of the
divisions at a business unit level we are continuing to simplify and harmonise
our processes, procedures, and systems to support scaling the business units
and in turn, the associated divisions as we look forward to achieving our 2030
goals.
Strategic direction
We are seeking to drive growth, scaling the individual business units by
delivering value through our trusted technologies. This is being achieved by
focusing on markets where our core competencies and the engineering expertise
are recognised and valued.
Our four strategic pillars to drive growth are:
• Talent development embedding our ESG values;
• Broadening our complementary product and technology portfolio;
• Engineer-in trusted technology for demanding applications,
securing recurring high quality revenue; and
• Internationalisation of the Group.
The following key milestones represent critical steps in the delivery of our
strategy, and are foundations upon which our 2030 plans and ambitions are
being built:
• Investment in the development of our technical capabilities and
expertise with the new integrated systems facility becoming operational,
delivering enhanced capabilities and value-added differentiation of our
offering to our Tier 1 customers;
• Continue to generate cash and pay down borrowings to position the
Group for future investments;
• Separation of the Power division where we have continued to invest
in developing the leadership team under a Global Vice President / General
Manager, improving technical expertise and increasing scale. We are seeing
benefits from improved collaboration and the focus with the global Custom
Power brand; and,
• Post Period-end, the Group announced an initial order valued at
$10.8m under Project CAIN, a major defence programme where a new UK Government
end user Group has adopted the Persistent Systems radio communications
technology.
Environmental Social and Governance ("ESG")
ESG is at the core of Solid State's strategy, creating a long-term sustainable
business which minimises our impact on the environment and maximises value for
our stakeholders.
Our technology, products and systems are designed and engineered to be high
quality, often upgradable with a long life, and energy efficient, which
inherently means we are starting from a strong position. These characteristics
help to differentiate us from our competitors and enable us to be ambitious in
how we operate. We believe we are a business leading on ESG in our sector.
Our ESG Committee continues to improve our communication with stakeholders to
articulate our ESG strategy and deliver on our goals, including achieving net
zero in Scope 1 and 2 emissions by 2050.
Performance and markets
Group
Solid State has been successful in building on its relationships with Tier 1
customers across our target growth markets of defence and security, medical,
transport, and industrial automation, where we have seen design-in and
equipment contract wins with certain larger orders announced during the Period
and post Period-end. Our long-standing relationships, strong commitment to
customer service, and proactive management of semiconductor supply chains have
enabled us to maintain a well-diversified customer base across our target
markets underpinning our resilient business model.
The Group is now very well positioned in D&S markets. This sector is
highly regulated, with substantial barriers to entry for those without many
years of experience and the necessary personal and facility
accreditations. The Directors have identified high growth potential for this
business, which has excellent relationships with strategically important
customers, innovative world-class technology, and operates in an environment
which will benefit from well documented increased levels of public spending,
both domestic and internationally, in coming years.
Having achieved the ISO13485 medical standard in our production facility in
Weymouth in the prior year, we will continue to invest in enhancing the
Group's accreditations which are relevant to our target markets which provide
barriers to entry and ensure that our engineering value-add is recognised by
our customers. While the D&S market is currently very buoyant, we continue
to develop our other target markets such as medical and transport where our
accreditations, know-how and longer design cycles are valued. Developing these
markets over the longer term will complement and balance our strength in the
D&S market.
Components
The market for industrial IoT products has been strong against the backdrop of
a weaker industrial sector where we have seen the global electronics market
continue to normalise, with orderbooks adjusting to reflect shorter lead times
and unwinding of overstocking. Political and economic uncertainty has affected
some sectors, with certain customers delaying orders in response to shorter
lead times combined with slower demand. However, like the rest of the Group,
our Components division has continued to see strong demand and increased
billings for components utilised in the D&S sector.
Systems
Within the Systems division, the Group is building a robust platform to
deliver growth, including the addition of highly skilled and experienced
people, and opening new capacity in a dedicated "integrated systems"
production facility which is now operational and contributing revenue. This
facility has boosted the Group's technical capabilities and capacity, which is
driving organic growth, and improving mid-term margins.
This facility provides significant capacity for growth over the coming years
to 2030. Having commenced deliveries in this financial year we expect the
facility to cover its costs; however the utilisation is modest, which means it
will continue to be dilutive to the Group's operating margins while we
demonstrate delivery and ramp utilisation over the coming periods.
Towards the end of the Period, the Group announced the award of a significant
contract for this facility from the Defence Science and Technology Laboratory,
an executive agency of the Ministry of Defence of the United Kingdom ("UK
MoD"). Improving utilisation will mean that this facility and the associated
capabilities will realise the operational gearing benefits resulting in an
enhancement of the Group's operating margins as we progress towards our 2030
strategy horizon.
Power
As recently announced the Group's Power division has achieved significant
progress by securing several new and major follow-on orders for battery
systems from key Tier 1 customers in the robotics, drone, and naval maritime
sectors. These high-quality projects, along with an improving pipeline of
prospects in both the US and UK, reflect a strategic shift toward higher-value
activities.
This focus is delivering significantly improved performance having exited
lower value-added customer accounts in the prior year. Based on the progress,
we have committed to a phased investment plan which will ensure we enhance our
operational capabilities, quality and capacity, which is critical to
establishing capacity and a differentiated offering for our customers to
underpin delivery of our mid-term growth ambitions.
Branding and Market positioning
Having completed the initial adoption of the new branding for the existing
Group companies with Active Silicon, Steatite, Q-PAR USA and Custom Power all
adopting the common approach, we are seeing the benefits of this family of
brands. This has made it simpler to articulate "who we are, what we do and why
our offering is unique and different from our competitors". It has also
provided a common brand platform facilitating the presentation of Group
capabilities to existing and new customers.
Tribute to Gary Marsh (CEO 2002 - 2025)
I have had the great pleasure of working alongside Gary Marsh since joining
the Board of Solid State in 2019. He had a deeply ingrained understanding of
the business and its people. He led the Company for many years with abundant
skill and sound judgement, but more importantly with a warm and friendly
personal touch. He engendered an exceptional company culture, consistent
with its roots as a family-owned enterprise, but with the polish and
professionalism of a listed company.
He was also valued, respected and well-liked by many long-standing
institutional investors, who have been very kind in coming forward with
messages of condolence to his family, and support for the Board, management
and the Company as a whole. These have been much appreciated.
He will be greatly missed by all of us, yet the strongest tribute is his
legacy; a closely knit executive group with the leadership skills and
experience to ensure continuity and future success, supported by a talented
and committed workforce across the Group.
Board structure and succession planning
The Board is grateful that John Macmichael has accepted the invitation to step
in as Interim Chief Executive. He is well supported by a strong executive
team at Solsta, enabling him to dedicate the required time for this additional
responsibility. John's interim role will be for a minimum period of six
months to enable him to continue to work to a long-term horizon whilst the
future needs of the Company are considered at a more appropriate time.
On a separate note, the Board is pleased to announce the appointment of Victor
Chavez CBE as Deputy Chairman with effect from 1 January 2026. Victor has
broad sectoral experience spanning the many of the key markets of the Group,
underpinned by a strong technology background as former Chief Executive of
Thales UK, a £1.2 billion business employing circa 6,500 people. He has a
strong track record of growing businesses and working closely with government
and commercial customers and has proven experience of implementing strategic
and organisational development programmes in complex businesses. We welcome
him to the Board and look forward to his insight and valuable contribution.
Victor's appointment is part of a wider ranging succession plan, under which
he is expected to step into the Chair role during a twelve-month transitional
arrangement throughout 2026. I have indicated my own willingness to remain
as a non-executive director following this transition to support Victor and
the Board for an agreed period.
People and leadership development
Group leadership continues to be strengthened by the Executive board,
reporting to the Directors, which has been tasked with the delivery of
strategic objectives, monitoring and control of ongoing operational and
commercial activities and continuous improvement. The "Executive board" is
working well and is driving progress in developing and delivering the 2030
strategy and providing a structure for development of talent and the next
generation of leadership;
We remain committed to investing in new talent and strengthening our senior
team across the Group. This includes implementing a General Management
structure within the Systems business units, enhancing the US team with
Engineering, Quality, and HR management roles, and recruiting additional
talent in IT, Quality, Health & Safety, and Project Management in the
UK.
Developing our Group leadership team is a critical driver for future growth.
Significant investment has been directed towards building expertise in growth
areas such as communications and integrated systems, with several internal
promotions reflecting our commitment to nurturing talent. Talent acquisition
processes and systems are being developed globally. The introduction of an
internal recruitment function has led to 78% of talent being sourced in-house
this financial year.
The work of the ESG Committee is continuing to build our internal
communications through HR roadshows, to ensure that our environmental, social
and wellbeing initiatives are embraced by our people. The Executive board is
driving progress in updating, refocusing and delivering the strategy,
strengthening the leadership, and improving succession planning, which is
critical in ensuring our leadership structure can deliver the next phase of
the Group's growth.
We're a proud signatory of the Armed Forces Covenant and are working toward
achieving Silver status. Our policies are being refined to align with the
covenant's commitments, ensuring real support for those who have served. We're
also proud to employ ex-servicemen and women, whose skills and discipline
strengthen our team every day.
M&A activities
The Group remains acquisitive, with an active and well-developed pipeline of
opportunities across all three divisions which are under consideration. The
Board continues to pursue attractive acquisition prospects across target
markets in the UK and overseas, with a focus on enhancing capability,
advancing technology, and supporting the Group's international expansion.
The Board sees M&A providing the potential to replicate established UK
technology and technical capabilities in new territories providing a
lower-risk means of establishing local presence and accelerating growth in the
region.
Outlook
The Board has set out a strategy for Solid State to develop its business
through the delivery of multi-year, multi-product programmes as a valued
partner to international blue-chip customers which will improve the quality of
earnings from the core activities, with overlaying periodic project revenues
and profits which will add significant shareholder value in those periods.
This has delivered consistent success over the past several years, including
record financial results in FY23/24 and a very strong start to the current
financial year.
Our core markets are highly regulated, with significant barriers to entry and
opportunities to earn premium margins. In addressing and scaling our core
capabilities to meet these exacting requirements, the Group invests in talent,
facilities and product development, sometimes ahead of the available return.
The Board remains confident that the strategic priorities and focus remain
unchanged, and the business model is resilient.
Our Components division has faced challenging market conditions in recent
periods, with subdued industrial demand resulting in broadly flat billings.
The business remains focused on maintaining an efficient cost base while
retaining key talent and engineering expertise to support growth as markets
recover. Despite current headwinds, the division provides a stable foundation
and is well positioned to benefit from operational gearing as volumes return
to prior highs.
Our Systems division is focused on positioning the business to capitalise on
the significant growth potential arising from the strong demand for our
world-leading radio frequency (RF) antennas and integrated systems
capabilities. The Group is committed to continuing to invest in the facilities
establishing capacity and capability to realise these potentially
transformational growth opportunities.
Our Power division is beginning to see the benefits of its strategy to focus
on premium customers in markets that value and require our engineering
expertise. We remain committed to investing in advanced capabilities to stay
at the forefront of battery pack technology for our target markets, enabling
the division to scale and deliver significantly improved operating margins.
Very positively, the order intake in recent weeks has improved, which is
reflected in the Group order book at 30 November 2025 of £97.0m. This
provides confidence that current earnings guidance for this year and next is
deliverable, with potential to build foundations for future outperformance.
Nigel Rogers
Chairman
1 December 2025
FINANCIAL REVIEW
Revenue
The Group reported revenue of £85.7m for the Period (H1 24/25: £61.8m),
representing a 38.7% increase compared to the prior period.
The primary driver of this increase was the recognition of £23.3m in respect
of periodic communications revenues which were delayed from the prior year.
These shipments more than offset the currency-related revenue headwind of
approximately £2.8m, with the average USD exchange rate at $1.34:£1 (H1
24/25: $1.28:£1).
Adjusting for the impact of "periodic communications programme revenues" and
foreign exchange, revenues increased by approximately 3.6%. This increase in
revenues reflects stronger demand from the defence and security ("D&S")
sector offsetting the challenging markets continuing in the industrial and
transport sectors.
Divisional review
The Components division delivered revenue of £30.0m (H1 24/25: £26.8m), a
11.9% increase on the prior year driven by demand in contract manufacturers in
the D&S market while the industrial, medical and transport sectors have
been stable, albeit have rebased at a lower level than previously seen. Design
activity remains strong and post Period-end we have seen an upturn in order
intake which provides confidence that we will see stronger billings in the
Second Half.
The Systems division revenues include periodic revenues in respect of
communications programmes as well as longer term integrated systems projects.
As noted above, in this period it has delivered a strong start to the year,
with reported revenues of £38.7m (H1 24/25: £21.5m) driven by D&S
communications shipments. The revenue pipeline for H2 is robust and we are
excited about the mid-term growth opportunities for all three business units
(Antenna's, Communications and Computing Systems).
The Power division has had a strong start to the financial year with reported
revenues of £17.0m (H1 24/25: £13.4m) reflecting the benefit of seeing the
deliveries beginning to build for the orders secured in the prior financial
year from key Tier 1 customers in the medical, drone, and naval maritime
sectors.
As we have recently announced, there is a strengthening pipeline and we are
continuing to invest in enhancing our capability to enable the business to
meet the significant opportunities we have sight of in the pipeline. This
investment is being made ahead of the revenue, which is diluting the operating
margins in the short-term. However, the investment is critical to ensure we
can execute on meeting customer expectations and realise our mid-term growth
ambitions and strategic goals.
As a result of macro-economic uncertainty both in the US, with the impact of
tariffs, and the recent UK budget, we have seen customers placing shorter
orders and delays in placement of orders. Despite these headwinds, we are
identifying promising opportunities, where we have seen a notable improvement
in the project pipeline and contract awards within the D&S sector, as
noted above as well as several important follow-on orders within the
Components division. This reinforces our confidence in delivering Second Half
performance in-line with the revised expectations.
Looking ahead to 2026 and beyond, the Group's initial communications order
under project CAIN gives confidence that additional major projects and revenue
opportunities will arise as the communications technology is adopted by a
growing number of D&S users across the NATO alliance.
Gross margins
Group margins are broadly stable year on year at 31.0% (H1 24/25: 31.1%). The
absolute value of product margins in the First Half have been stable across
the Group, however in passing on tariffs we have faced a dilutive impact to
the margin %, albeit at a Group level this is mitigated by the strong Systems
billings enhancing the revenue mix. Consequently, gross margins for the Period
totalled £26.5m (H1 24/25: £19.2m).
Overheads
Sales, general, and administrative expenses for the Period were £22.0m (H1
24/25: £17.4m) and are significantly higher than the prior year, reflecting
ongoing investment of circa £2.5m and circa £2.1m of variable overheads
associated with the strong performance in the Period.
The Group remains committed to its investment in key areas with strong
mid-term growth potential, including our new integrated systems facility in
Tewkesbury and the expansion of our capability to deliver additional RF
antenna communications products.
Operating margin
The adjusted performance metrics are reported to provide a clearer view of the
Group's ongoing cash-based performance and these remain consistent with prior
periods. These metrics exclude the impact of one-off items,
acquisition-related intangible amortisation, non-recurring tax credits,
non-recurring charges in respect of re-organisation costs, acquisition fees
and share option expenses.
Group adjusted operating margins remain a key focus. Having seen stronger
trading, the Group has observed an operational gearing benefit, albeit the
increase is curtailed by the ongoing critical investments as noted above.
The result is that Adj. operating margins have improved to 6.5% (H1 24/25
5.1%). This is a positive step towards the mid-term goal of circa 10% and as
we continue to improve the facility utilisation across the Systems and Power
divisions, and benefit from the operational gearing benefits within
Components, we are confident we can realise this goal.
Reported operating margins also improved to 5.3% (H1 24/25: 3.0%).
PBT
Adjusted profit before tax ("PBT") has increased to £4.9m, up 96.0% (H1
24/25: £2.5m). Profit before tax was £3.8m (H1 24/25: £1.2m).
Tax
The expected effective tax rate has increased year-on-year to 25.0% (H1 24/25:
19.1%), primarily due to higher profitability. This has diluted the impact of
share option tax deductions and enhanced tax allowances, expected to increase
the effective rate to the standard rate of 25%. It is worth noting that the
benefits from R&D tax credits are reflected within operating margins
rather than in the tax line in both periods.
PAT
Adjusted profit after tax ("PAT") has increased to £3.7m, up 85.0% (H1 24/25:
£2.0m). Profit after tax was £2.9m (H1 24/25: £1.0m).
EPS
The prior year basic and adjusted EPS figures have been restated for the bonus
share award of 4 shares for every one share held which was completed in
October 2024.
The stronger start to the financial year results in adjusted diluted earnings
per share ("EPS") at 6.5p (H1 24/25: 3.5p (previously reported 17.5p) and with
basic EPS of 5.1p (H1 24/25: 1.7p (previously reported 8.6p). With a the
strong open orderbook underpinning a solid second-half contribution, we remain
confident in meeting full-year expectations.
Dividend
The Board remains committed to delivering returns to shareholders, including
the payment of dividends. Based on the Group's trading performance in the
First Half and the outlook for the full year, the Board has declared an
interim dividend of 0.92p per share (H1 24/25 reported: 0.83p).
The interim dividend will be paid on 13 February 2026 to shareholders on the
register as of close of business on 23 January 2026. Shares will go
ex-dividend on 22 January 2026.
Cashflow
Operating cash
Operating cash generation during the First Half remained a key focus for the
management team. The Group has continued to be cash generative in the Period
with cash generated from operations of £5.7m (H1 24/25: £8.8m), reflecting
the significant investment in working capital associated with the
communications orders shipped at the end of the Period. This resulted in an
adjusted operating cash conversion of 103% (H1 24/25: 284%).
Consistent with the prior year, during the First Half we made final payments
and payments on account in respect of taxation of £1.7m (H1 24/25: £1.6m).
Investing activities
Capital expenditure in the First Half was broadly consistent with prior years
at £1.6m (H1 24/25: £1.6m). The primary project during this period was the
fit-out of the upstairs at our Waterside Langley facility having consolidated
into one site and the continued investment in our integrated systems facility,
combined with ongoing replacement across the Group. We anticipate the
full-year capital expenditure to be consistent with the previous year as we
continue to invest in enhancing our capabilities.
In the First Half, there were no acquisition-related payments, however we
expect to see payments of £0.3m in the Second Half.
Financing activities
Underpinned by the strong cash generation during the First Half, we have paid
the final dividend of £0.9m (H1 24/25 £1.6m).
During the Period we refinanced our facilities putting in place a £15m
committed multi-currency revolving credit facility (RCF) with a £10m
uncommitted accordion and a £5m uncommitted overdraft with the Group's
existing banking partners. The committed elements of these facilities are for
three years and replace the previous finance arrangements.
As a result, we have seen the repayment of the existing facilities, offset by
a drawdown of the new RCF. Overall, our borrowings have increased by £1.9m to
£12.4m in the Period, including the utilisation of £1.7m of the overdraft to
fund the short term USD working capital requirements associated with the large
shipments close to the {Period-end.
During the Period our interest payments were £0.4m (H1 24/25: £0.6m) and
payments in respect of right of use assets were £0.7m (H1 24/25: £0.8m).
Statement of financial position
Inventory
Inventory levels across the Group continue to be an area of focus, compared to
the year-end position they have decreased slightly to £26.4m (H1 24/25:
£25.4m; Full Year 24/25: £28.2m).
Receivables
Receivables at the half-year stood at £27.9m (H1 24/25: £18.7m; Full Year
24/25: £21.6m), which is significantly higher than the prior reporting
periods. This increase reflects strong billings at the end of the First Half
noted above. Receivables ageing continues to be good and the cash collections
post Period-end have been strong as the receivables have normalised.
Net assets
The strong trading performance resulted in net assets increasing from £61.5m
at the year-end to £62.2m (H1 24/25: £62.5m). The £2.9m retained profits
and the £0.1m share-based payments credit have been offset in part by the
final dividend payment of £1.0m and a £1.3m foreign currency translational
impact recognised in reserves.
As the Company has typically done in previous years, we expect to purchase a
modest number of shares into treasury for the purpose of the all employee
share scheme during the Second Half.
Net debt
Net debt reduced from £7.4m at the year-end to £7.1m (H1 24/25: £2.0m),
reflecting modest cash generation during the First Half. At Period-end, net
debt comprised £5.8m in cash with banks offsetting £12.4m in borrowings and
£0.4m in deferred consideration.
We expect to benefit from a modest unwind in working capital in the Second
Half, therefore we expect our cash generation to be Second Half weighted,
meaning we expect net debt to come down broadly in-line with expectations.
Leverage (defined as Net debt / EBITDA) on a full year basis is expected to be
circa 0.4x, which means the business should have in excess of £10m debt
capacity to fund future investment both organic and bolt-on acquisitions to
drive our growth strategy.
Statement of Directors' responsibilities
The Directors confirm that this condensed consolidated interim financial
information has been prepared in accordance with International Accounting
Standard 34, "Interim Financial Reporting", as set out in the basis of
preparation paragraph within the accounting policies, and that the interim
management report herein includes a fair review of the information required by
DTR 4.2.7 and DTR 4.2.8, namely:
• an indication of important events that have occurred during the
first six months, and their impact on the condensed consolidated interim
financial information, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
• material related party transactions in the first six months and
any material changes in the related party transactions described in the last
annual report.
Forward-looking statements
Certain statements in this Half-Year Report are forward-looking. Although the
Group believes that the expectations reflected in these forward-looking
statements are reasonable, we can give no assurance that these expectations
will prove to be correct. Because these statements involve risks and
uncertainties, actual results may differ materially from those expressed or
implied by these forward-looking statements. We undertake no obligation to
update any forward-looking statements whether arising as a result of new
information, future events or otherwise.
Peter James
Chief Financial Officer
1 December 2025
INTERIM CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
Continuing operations Unaudited Unaudited Audited Year to
Six months to Six months to 31 Mar 25
30 Sept 25 30 Sept 24 £'000
£'000 £'000
Revenue (see note 4) 85,653 61,775 125,064
Cost of sales (59,113) (42,586) (85,737)
Gross profit 26,540 19,189 39,327
Sales, general and administration expenses (22,014) (17,359) (37,993)
Profit from operations 4,526 1,830 1,334
Finance costs (678) (624) (1,014)
Profit before taxation 3,848 1,206 320
Taxation expense (963) (231) 192
Adjusted profit after taxation 3,728 2,018 3,563
Adjustments to profit (see note 5) (843) (1,043) (3,051)
Profit after taxation 2,885 975 512
Other comprehensive loss - FX on overseas operations (1,302) (1,794) (688)
Other comprehensive income - taxation - - 43
Adjusted total comprehensive income for the period 2,426 224 2,875
Adjustments to total comprehensive income/ (loss) (see note 5) (843) (1,043) (3,008)
Total comprehensive income/ (loss) for the period 1,583 (819) (133)
Earnings per share (see Note 6)
Basic EPS from profit for the period 5.1p 1.7p 0.9p
Diluted EPS from profit for the period 5.0p 1.7p 0.9p
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 (UNAUDITED)
Share Share premium Foreign exchange Other reserves Shares held in
capital reserve reserve £'000 Retained earnings treasury
£'000 £'000 £'000 £'000 £'000 Total
£'000
Balance at 31 Mar 2024 569 30,581 (1,515) (64) 35,086 (37) 64,620
Dividends - - - - (1,649) - (1,649)
Share-based payment credit - - - - 322 - 322
Transactions with owners in their capacity as owners (1,327)
- - - - - (1,327)
Result for the period - - - - 975 - 975
Foreign exchange - - (1,794) - - - (1,794)
Total comprehensive income - - (1,794) - 975 - (819)
Balance at 30 Sep 2024 569 30,581 (3,309) (64) 34,734 (37) 62,474
Issue of new shares 2,285 (2,281) - - - - 4
Dividends - - - - (470) - (470)
Share-based payment debit - - - - (697) - (697)
Transactions with owners in their capacity as owners 2,285 (2,281) - - (1,167) - (1,163)
Result for the period - - - - (463) - (463)
Other comprehensive income - - - - 43 - 43
Foreign exchange - - 1,106 - - - 1,106
Total comprehensive income - - 1,106 - (420) - 686
Purchase of treasury shares - - - - - (501) (501)
Balance at 31 Mar 2025 2,854 28,300 (2,203) (64) 33,147 (538) 61,496
Dividends - - - - (948) - (948)
Transfer of treasury shares to/(from) All Employee Share Plan - - - - (233) 233 -
Share-based payment credit - - - - 110 - 110
Transactions with owners in their capacity as owners (1,071)
- - - - 233 (838)
Result for the period - - - - 2,885 - 2,885
Foreign exchange - - (1,302) - - - (1,302)
Total comprehensive income - - (1,302) - 2,885 - 1,583
Balance at 30 Sep 2025 2,854 28,300 (3,505) (64) 34,961 (305) 62,241
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2025
Unaudited Unaudited Audited
as at as at as at
30 Sept 25 30 Sept 24 31 Mar 25
£'000 £'000 £'000
Assets
Non-current assets
Intangible assets 35,143 37,626 36,968
Property, plant and equipment 5,710 4,594 5,487
Right-of-use lease assets 5,443 3,717 6,075
Deferred tax asset 512 605 1,458
Total non-current assets (see note 9) 46,808 46,542 49,988
Current assets
Inventories 26,441 25,387 28,239
Trade and other receivables 27,923 18,652 21,616
Corporation tax asset 1,817 132 986
Cash and cash equivalents - available on demand 5,773 8,352 3,513
Total current assets 61,954 52,523 54,354
Total assets 108,762 99,065 104,342
Liabilities
Current liabilities
Trade and other payables (19,496) (13,871) (17,020)
Deferred and contingent consideration - current (206) - (181)
Current borrowings (1,777) (7,764) (8,634)
Contract liabilities (6,204) (5,806) (5,847)
Corporation tax liabilities (163) - (229)
Right of use lease liabilities (1,223) (984) (1,402)
Provisions - current (260) (50) (190)
Total current liabilities (29,329) (28,475) (33,503)
Non-current liabilities
Non-current borrowings (10,669) (2,587) (1,935)
Deferred and contingent consideration - non-current (230) - (161)
Provisions (1,122) (843) (1,098)
Deferred tax liability (1,011) (1,951) (1,548)
Right-of-use lease liabilities (4,160) (2,735) (4,601)
Total non-current liabilities (17,192) (8,116) (9,343)
Total liabilities (46,521) (36,591) (42,846)
Total net assets 62,241 62,474 61,496
Share capital (see note 8) 2,854 569 2,854
Share premium reserve 28,300 30,581 28,300
Other reserves (64) (64) (64)
Foreign exchange reserve (3,505) (3,309) (2,203)
Retained earnings 34,961 34,734 33,147
Shares held in treasury (305) (37) (538)
Total equity 62,241 62,474 61,496
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
Unaudited Unaudited Unaudited
Six months to Six months to Year to
30 Sept 25 30 Sept 24 31 Mar 25
£'000 £'000 £'000
Operating activities
Profit before taxation 3,848 1,206 320
Adjustments for:
Property, plant and equipment depreciation and impairment 774 657 1,407
Right-of-use asset depreciation 543 541 1,114
Amortisation 1,306 1,435 2,758
Impairment of intangible assets - - 2,734
(Profit)/ Loss on disposal of property, plant and equipment (12) 12 56
Share-based payment expense/ (credit) 110 322 (375)
Finance costs 636 624 1,014
Increase in deferred contingent consideration 94 - -
Profit from operations before changes in working capital and provisions 7,299 4,797 9,028
Decrease/ (Increase) in inventories 1,431 (687) (2,712)
(Increase)/ Decrease in trade and other receivables (6,360) 12,600 9,704
Increase/ (Decrease) in trade and other payables 3,271 (7,896) (5,650)
Increase in provisions 95 22 26
Cash generated from operations 5,736 8,836 10,396
Income taxes paid (1,659) (1,601) (2,565)
Income taxes recovered 30 13 13
Net cash flows from operating activities 4,107 7,248 7,844
Investing activities
Purchase of property, plant and equipment (1,101) (1,152) (2,292)
Capitalised own costs and purchase of intangible assets (505) (486) (1,202)
Proceeds from sale of property, plant and equipment 133 126 232
Payments for acquisition of subsidiaries net of cash acquired - - (2,123)
Net cash flows from investing activities (1,473) (1,512) (5,385)
Financing activities
Repurchase of ordinary shares into treasury - - (501)
Borrowings drawn 12,508 - 894
Borrowings repaid (12,447) (2,757) (3,408)
Payment obligations for right-of-use assets (743) (768) (1,327)
Interest paid (429) (571) (1,044)
Interest received 48 - 138
Dividends paid to equity shareholders (948) (1,649) (2,119)
Net cash flows from financing activities (2,011) (5,745) (7,367)
Increase/ (Decrease) in cash and cash equivalents 623 (9) (4,908)
Unaudited Unaudited Audited
as at as at as at
30 Sept 25 30 Sept 24 31 Mar 25
£'000 £'000 £'000
Translational foreign exchange on opening cash (93) (84) (24)
Net increase in cash and cash equivalents 623 (9) (4,908)
Net cash and cash equivalents brought forward 3,513 8,445 8,445
Net cash and cash equivalents carried forward 4,043 8,352 3,513
Unaudited Unaudited Audited
as at as at as at
30 Sept 25 30 Sept 25 31 Mar 25
£'000 £'000 £'000
Represented by:
Cash and cash equivalents - available on demand 5,773 8,352 3,513
Cash and cash equivalents - overdraft facility (1,730) - -
Net cash and cash equivalents 4,043 8,352 3,513
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
1. Basis of preparation of interim financial information
General information
Solid State plc (the "Company") is a public company incorporated, domiciled
and registered in England and Wales in the United Kingdom. The registered
number is 00771335 and the registered address is: 2 Ravensbank Business Park,
Hedera Road, Redditch B98 9EY.
The interim financial statements are unaudited and do not constitute statutory
accounts within the meaning of section 434 of the Companies Act 2006.
Statutory accounts for the year ended 31 March 2025, prepared in accordance
with UK-adopted International Accounting Standards, have been filed with the
Registrar of Companies. The Auditor's Report on these accounts was
unqualified, did not include any matters to which the auditors drew attention
by way of emphasis without qualifying their report and did not contain any
statements under section 498 of the Companies Act 2006.
Basis of preparation
These condensed interim financial statements for the six months ended 30
September 2025 have been prepared in accordance with IAS 34, "Interim
financial reporting", as contained in UK-adopted International Accounting
Standards.
The condensed interim financial statements should be read in conjunction with
the annual financial statements for the year ended 31 March 2025, which have
been prepared in accordance with UK-adopted International Accounting
Standards.
The consolidated interim financial statements have been prepared in accordance
with the recognition and measurement principles of UK-adopted International
Accounting Standards expected to be effective for the year ending 31 March
2026.
Going concern
In assessing the going concern position of the Group for the Consolidated
Financial Statements for the half year ended 30 September 2025, the Directors
have considered the Group's cash flows, liquidity and business activities.
At 30 September 2025, the Group has net debt (excluding IFRS16) of £7.1m. At
the Half Year total committed facilities are a £15.0m RCF. There are
uncommitted facilities available of a £10.0m accordion, a base net
multi-currency overdraft facility of £5.0m and the potential to access an
additional gross £5m extension to the overdraft facility, subject to
agreement with the bank, to cover very short-term spikes in working capital
which may arise. At the period end £10.7m of RCF was drawn in addition to a
£1.7m USD currency overdraft.
Based on the Group's forecasts, the Directors have adopted the going concern
basis in preparing the Financial Statements. The Directors have made this
assessment after consideration of the Group's cash flows and related
assumptions and in accordance with the Guidance published by the UK Financial
Reporting.
The Directors have taken account of the results to date, current expected
demand, and mitigating actions that could be taken, together with an
assessment of the liquidity headroom against the cash and bank facilities. The
bank facilities are subject to financial covenants; therefore, in evaluating a
stressed forecast, the Board only included the RCF in the headroom to the
extent it is available within the covenants.
This financial modelling is prepared to 31 March 2027 and has been based on an
extension of the reforecast guidance for FY25/26 reflecting the current
trading performance. The Board has maintained significantly sensitised
guidance and as such does not consider further sensitivities are needed to the
model. The financial model assumes that revenue, margin and cash profit remain
flat for the following twelve months which is well below the expectation as H1
25/26 has seen a significant improvement.
With no growth built into the Group EBITDA forecast, combined with the
mitigating actions that are within the Group's control, the Group would fully
comply with covenants and maintain sufficient liquidity to meet its
liabilities as they fall due.
The Directors have concluded that the likelihood of a scenario whereby the
covenant headroom is exhausted is remote and therefore there are no material
uncertainties over the Group and Company's ability to continue as a going
concern. Nevertheless, it is acknowledged that there are, potentially,
material variations in the forecast level of future financial performance.
The Directors have a reasonable expectation that the Group has adequate
resources to continue in operational existence for the next 15 months;
therefore, it is appropriate to adopt a going concern basis for the
preparation of the financial statements. Accordingly, these financial
statements do not include any adjustments to the carrying amount or
classification of assets and liabilities that would result if the Group and
Company were unable to continue as a going concern.
2. Accounting policies
The accounting policies are unchanged from the financial statements for the
year ended 31 March 2025, other than as noted below.
Financial instruments
The carrying value of cash, trade and other receivables, other equity
instruments, trade and other payables, and borrowings also represent their
estimated fair values.
Additional disclosure of the basis of measurement and policies in respect of
financial instruments are described on pages 109 to 114 of our 31 March 2025
Annual Report and remain unchanged at 30 September 2025.
Estimates
The preparation of interim financial statements requires management to make
judgements, estimates and assumptions that affect the application of
accounting policies and the reported amounts of assets and liabilities,
income, and expense. Actual results may differ from these estimates.
In preparing these condensed interim financial statements, the significant
judgements made by management in applying the Group's accounting policies and
the key sources of estimation uncertainty were the same as those that applied
to the consolidated financial statements for the year ended 31 March 2025.
Recent accounting developments
The accounting policies adopted are consistent with those of the previous
financial year, and in preparing the interim financial statements, there were
no standards, amendments or interpretations applied for the first time that
had a material impact for the Group.
3. Principal risks and uncertainties
The principal risks and uncertainties impacting the Group are described on
pages 44 to 47 of our 31 March 2025 Annual Report and remain unchanged at 30
September 2025.
The risks considered to impact the Group include: acquisitions, legislative
environment and compliance, competition, product/technology change, supply
chain interruption, destocking and cost inflation, retention of key employees,
failure of, or malicious damage to, IT systems, natural disasters, and
forecasting and financial liquidity.
4. Segmental information
Unaudited Unaudited Audited
Six months to Six months to Year to
30 Sept 25 30 Sept 24 31 Mar 25
£'000 £'000 £'000
Revenue
Systems 38,717 21,534 42,099
Power 16,962 13,421 29,041
Components 29,974 26,820 53,924
Group revenue 85,653 61,775 125,064
5. Adjusted profit measures
Unaudited Unaudited Audited
Six months to Six months to Year to
30 Sept 25 30 Sept 24 31 Mar 25
£'000 £'000 £'000
Acquisition fair value adjustments, reorganisation and deal costs - 88 431
Impairment of Goodwill - - 2,734
Amortisation of acquisition intangibles 940 903 1,909
Share-based payments 112 322 (374)
Imputed interest on deferred consideration unwind 21 - 18
Current and deferred taxation effect (230) (270) (1,303)
Non-recurring deferred tax credit in USA - - (364)
Movement of deferred tax assets in other comprehensive income - - (43)
Total adjustments to other comprehensive income 843 1,043 3,008
Gross profit 26,540 19,189 39,327
Adjusted gross profit 26,540 19,189 39,327
Operating profit 4,526 1,830 1,334
Adjusted operating profit 5,578 3,143 6,034
Operating profit margin percentage 5.3% 3.0% 1.1%
Adjusted operating profit margin percentage 6.5% 5.1% 4.8%
Profit before tax 3,848 1,206 320
Adjusted profit before tax 4,921 2,519 5,038
Profit after tax 2,885 975 512
Adjusted profit after tax 3,728 2,018 3,563
Other comprehensive income/(loss) 1,583 (819) (133)
Adjusted other comprehensive income 2,426 224 2,875
6. Earnings per share
The earnings per share is based on the following:
Unaudited (Restated(1)) Audited
Six months to Unaudited Unaudited Year to
30 Sept 25 Six months to Six months to 31 Mar 25
£'000 30 Sept 24 30 Sept 24 £'000
£'000 £'000
Adjusted earnings post tax attributable to equity holders of the parent 3,728 2,018 2,018 3,563
Earnings post tax attributable to equity holders of the parent 2,885 975 975 512
Weighted average number of shares 56,848,425 56,957,828 11,388,853 56,826,189
Diluted weighted average number of shares 57,726,379 57,835,613 11,564,000 57,487,575
EPS
Basic EPS from profit for the period 5.1p 1.7p 8.6p 0.9p
Diluted EPS from profit for the period 5.0p 1.7p 8.4p 0.9p
Adjusted EPS
Adjusted basic EPS from profit for the period 6.6p 3.5p 17.7p 6.3p
Adjusted diluted EPS from profit for the period 6.5p 3.5p 17.5p 6.2p
(1) The H1 24/25 disclosed basic EPS and diluted EPS of 8.6p and 8.4p have
been restated assuming the October 2025 4 for 1 bonus share issue occurred on
1 October 2023 to enable comparability.
7. Dividends
Dividends paid during the period from 1 September 2024 to 30 September 2025
were as follows:
27 September 2024 Final dividend year ended 31 March 2024 14.5p per share
14 February 2025 Interim dividend year ended 31 March 2025 0.83p per share
30 September 2025 Final dividend year ended 31 March 2025 1.67p per share
The Directors are intending to pay an interim dividend for the year ending 31
March 2026 on 13 February 2026 of 0.92p per share. This dividend has not been
accrued at 30 September 2025.
Unaudited Unaudited Audited
Six months as at Six months as at Year
30 Sept 25 30 Sept 24 as at
£'000 £'000 31 Mar 25
£'000
Allotted issued and fully paid
Ordinary 5p shares 2,854 569 2,854
8. Share capital
Unaudited Unaudited Audited
Six months as at Six months as at Year
30 Sept 25 30 Sept 24 as at
31 Mar 25
Allotted issued and fully paid
Number of ordinary 5p shares 57,081,720 11,376,644 57,081,720
The ordinary shares carry no right to fixed income, the holders are entitled
to receive dividends as declared and are entitled to one vote per share at
shareholder meetings.
Full details of movements in reserves are set out in the consolidated
statement of changes in equity.
The following describes the nature and purpose of each reserve within owners'
equity.
Reserve Description and purpose
Share premium Amount subscribed for share capital in excess of nominal value.
Other reserves Amounts transferred from share capital on redemption of issued shares.
Settlement value with non-controlling interests in excess of net asset
carrying value
Retained earnings Cumulative net gains and losses recognised in the consolidated statement of
comprehensive income.
Shares held in treasury Shares held by the Group for future staff share plan awards.
Foreign exchange Foreign exchange translation differences arising from the translation of the
financial statements of foreign operations.
Non-controlling interest Equity attributable to non-controlling shareholders.
9. Non-current assets
Unaudited Unaudited Audited
Six months as at Six months as at Year
30 Sept 25 30 Sept 24 as at
£'000 £'000 31 Mar 25
£'000
Goodwill 26,080 28,246 26,832
Acquisition intangibles 6,617 7,411 7,773
Research and development 1,726 1,341 1,632
Patents and Trademarks 204 - 156
Software 516 628 575
Intangible assets 35,143 37,626 36,968
Property plant and equipment 5,710 4,594 5,487
Right-of-use assets 5,443 3,717 6,075
Deferred tax asset 512 605 1,458
Total non-current assets 46,808 46,542 49,988
10. Net debt
Unaudited Unaudited Audited
Six months as at Six months as at Year
30 Sept 25 30 Sept 24 as at
£'000 £'000 31 Mar 25
£'000
Cash and cash equivalents - overdraft (1,730) - -
Bank borrowing due within one year (47) (7,764) (8,634)
Bank borrowing due after one year (10,669) (2,587) (1,935)
Total borrowings (12,446) (10,351) (10,569)
Deferred consideration on acquisitions - current (206) - (181)
Deferred consideration on acquisitions - non-current (230) - (161)
Cash and cash equivalents - on demand 5,773 8,352 3,513
Net debt (7,109) (1,999) (7,398)
Having refinanced on 18 May 2025, the Group has increased its committed
multi-currency Revolving Credit Facility ("RCF") to £15.0m. The £15.0m RCF
is committed until May 2028 with an option to extend by 2 years and bears
variable interest based on a margin over currency appropriate base rates.
There are also uncommitted facilities including an accordion of £10.0m, a
base multi-currency net overdraft facility of £5m and the Group has the
potential to access an additional gross multi-currency overdraft facility of
£5.0m, subject to agreement with the bank, to cover very short-term spikes in
working capital which may arise.
Lease liabilities are excluded from the Group's definition of net debt and a
separate roll-forward of lease liabilities will be presented in the full-year
report to the year ending 31 March 2026.
The Group's new banking facilities are subject to two financial covenants,
being: leverage, and interest cover. These covenants were met at all
measurement points throughout the period.
11. Related party transactions
During the period, the Group entered into a transaction with a fully owned
subsidiary of Filtronic PLC, an entity where Peter Magowan is also a
non-executive director. The transaction related to the sale of electronic
components totalling £0.01m (H1 2025: £0.0m). At 30 September 2025 no
receivables were outstanding. The transaction was conducted on normal arm's
length commercial terms.
There were no other related party transactions during the period that are
considered material to the Group's interim results.
12. Post balance sheet events
After the balance sheet date, the Group announced an initial order valued at
$10.8m under Project CAIN, a major defence programme for a UK Government end
user. In addition, several major orders have been received in H2 by the Power
division in relation to the supply of specialist power packs for applications
across unmanned aerial vehicles (UAVs), land-based robotic systems, portable
medical devices, industrial applications and the energy sector totalling
$7.4m.
There were no other identified post balance sheet events that are considered
material to disclose in the Group's interim results.
The statement will be available to download on the Company's website:
www.solidstateplc.com (http://www.solidstateplc.com) .
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