REG - Solid State PLC - Trading Update & Notice of Results

Solid StateAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20251104:nRSD0056Ga&default-theme=true

RNS Number : 0056G  Solid State PLC  04 November 2025

 

4 November 2025

 

Solid State plc

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

Trading Update

& Notice of Results

 

'Robust half-year performance - trading in line with market expectations'

 

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 ended 30 September 2025 (the
"Period").

Trading Update

The Company expects to announce revenues and adjusted profits before tax in
excess of £85.0m and £4.75m respectively (H1 24/25 - revenue £61.8m and
adjusted profits before tax of £2.5m).

These results reflect a strong performance with defence and security sales
more than offsetting a weaker performance from the industrial sector and
disruption caused by tariff uncertainty in the USA.

This strong performance is further accentuated through the recognition of
revenue from multi-period communications programmes which is irregular in
nature.  Adjusting for the effect of  periodic communications sales, and the
currency headwinds which have seen the USD weaken by circa 5%, revenues
increased by mid-single digit (5-7%).

Further progress has been made towards the Group's medium-term goal of
exceeding 10.0% adjusted operating margins with an improvement in the Period
to circa 7.0% (H1 24/25: 5.1%).

Notwithstanding challenging markets, all three divisions have developed their
customer offering and go to market operations, with particular focus and
success on building relationships with Tier 1 customers.  This has
complemented the Group's strategic diversification across sectors, products,
customers and territories to build further resilience into Solid State's
business model.

Components

The market for industrial IoT products has been strong against the backdrop of
a weaker industrial sector and a further normalisation of the global
electronics market, where order schedules have adjusted to shorter lead-times
and a continued unwinding of overstocking.

Systems

The Group's new integrated systems facility is now operational and fulfilling
customer orders.  This strategic investment has boosted the Group's technical
capabilities and added capacity to deliver higher revenues in value-added
production at enhanced margins.  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").

In addition, the Group remains well positioned to benefit from the increased
demand for communications programmes.  Revenue generated from communications
products and associated services arises from close relationships with
commercial partners, and with national and international agencies. 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.

During the Period, £23.3m of revenue was recognised which had been delayed
from delivery in the prior year as previously announced.  Since the end of
the Period, the Group announced the award of an initial $10.8m contract for
Project CAIN, a key defence initiative of the UK MoD.  Delivery of the
initial systems under this programme is expected in the first half of 2026.

Power

The Power division is benefiting from a strategic shift towards higher-value
activities and has successfully secured orders for battery systems from key
Tier 1 customers in the robotics, drone and naval sonar buoy sectors.  The
addition of engineering expertise to achieve optimal customer solutions is
increasingly seen as a differentiator.

Outlook

The Group has started the second half with a solid open order book of £87.3m,
of which over 60% is expected to be delivered in the second half. Including
the recently announced communications order for Project CAIN, the open order
book at 31 October 2025 stood at £96.6m.  This reflects a strong trading
position notwithstanding global geo-political risks and economic variables,
giving the Directors further confidence in meeting expectations for the full
year.

Commenting on the Period and outlook, Gary Marsh, Chief Executive Officer,
said:

"We are very pleased to be reporting a strong period in spite of various
trading challenges, acknowledging equally the contribution of irregular
communications revenue to this performance.

"We continue to improve the quality of earnings for the Group through
targeting multi-year, multi-product programmes for international blue-chip
customers where our value-added engineering-led expertise delivers state of
the art products, security of supply and reliability.  The new integrated
systems facility is a significant step in building capacity for future
higher-margin sales, and notable orders across the Group in the Period
demonstrate progress in a shift to higher-value activities.

"Order intake at the start of the second half is positive, underpinning
expectations for the full year."

 

Notice of Results

Solid State expects to announce its interim results for the six months ended
30 September 2025 on Monday 1 December 2025.

Analyst Briefing: 9.30am on Monday 1 December 2025

An online briefing for Analysts will be hosted by Gary Marsh, Chief Executive,
and Peter James, Group Finance Director, at 9.30am on 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: 2.00pm on Tuesday 2 December 2025

Gary Marsh, Chief Executive; and, Peter James, Group Finance Director; will
hold a presentation to cover the results and prospects at 2.00pm 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
(mailto:solidstate@walbrookpr.com) , or in real time during the presentation
via the "Ask a Question" function.

 

(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

 

* 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) .

 

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 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
two 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=)

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTEAPFDEFPSFFA



            Copyright 2019 Regulatory News Service, all rights reserved