REG - Solid State PLC - Trading Update

Solid StateAnnouncement

10/02/2022 07:00

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RNS Number : 2169B  Solid State PLC  10 February 2022

 

 

Solid State plc

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

Trading Update

 

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 year ending 31 March 2022 ('the Period').

Following a continuation of the strong trading performance reported in the
Interim Results in December, Solid State now expects to report revenues for
the Period slightly ahead of current consensus expectations(1) of at least
£80.0m (2021: £66.3m) with adjusted profit before tax well ahead of current
consensus expectations(1).

This trading momentum is reflected across both the Systems and Components
divisions, with highlights being the continued good margin mix from projects
delivered across the Group and very strong trading at the recently acquired
Active Silicon business.  As a result of the strong performance at Active
Silicon, the Group expects to further increase the earn out provision by
~£0.5m which will be included in net debt at year end. Forecast year end fair
value of deferred contingent consideration is now £5.75m (Active Silicon +
Willow Technologies).

Order intake remains strong, with a record open order book at 31 January 2022
standing at £74.1m (30 November 2021: £70.3m).

The global supply chain continues to present challenges for both Solid State
and its customers.  In many instances the risks are being mitigated through
collaboration with the client and supplier, and through order management;
complemented by continued strong Group cash generation to support investment
in working capital to manage the potential shortages.

The Group had net cash with banks of £0.4m at 31 January 2022 and has
retained its £3.0m overdraft and £7.5m Revolving Credit Facility which is
committed until November 2022.

Commenting on trading, Gary Marsh, Chief Executive at Solid State, said:

"The year continues to be busy and challenging, with widely reported supply
chain disruption, however the team is working very hard to collaborate with
both customers and suppliers to ensure timely supply of both components and
systems.  The depth of our relationships and our balance sheet strength is
helping greatly in being able to ensure consistent supply.

"The record open order book gives the Board confidence in the prospects for
Solid State."

 

(1)Analysts from brokers WH Ireland Limited, finnCap Limited, and Edison
Investment Research Limited, provide equity research on Solid State, and the
Company considers the average of their research forecasts to represent market
expectations, being, for Solid State's 2021/22 financial year, revenue of
£78.4m, and adjusted profit before tax* of £5.9m.

 

* The adjustments relate to IFRS 3 acquisition amortisation, share based
payments charges, and non-recurring charges in respect of redundancies and
acquisition costs and fair value adjustments.

This announcement contains inside information for the purposes of Article 7 of
EU Regulation 596/2014.

For further information please contact:

 

 Solid State plc                                           Via Walbrook

 Gary Marsh - Chief Executive

 Peter James - Group Finance Director
 WH Ireland (Nominated Adviser & Joint Broker)             020 7220 1666

 Mike Coe / Sarah Mather (Corporate Finance)

 Fraser Marshall (Corporate Broking)
 finnCap (Joint Broker)                                    020 7220 0500

 Ed Frisby (Corporate Finance)

 Rhys Williams / Tim Redfern (Sales / ECM)
 Walbrook PR (Financial PR)                                020 7933 8780

 Tom Cooper / Nick Rome                                    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 (SOLI) is a value added electronics group supplying
commercial, industrial and military markets with durable components,
assemblies and manufactured units for use in specialist and harsh
environments.  The Group's mantra is - 'Trusted technology for demanding
applications'.  To see an introductory video on the Group
- https://bit.ly/3kzddx7 (https://bit.ly/3kzddx7)

 

Operating through two main divisions: Systems (Steatite & Active Silicon)
and Components (Solid State Supplies, Pacer, Willow Technologies & AEC);
the Group specialises in complex engineering challenges often requiring
design-in support and component sourcing for computing, power, communications,
electronic, electro-mechanical and opto-electronic products.

 

Headquartered in Redditch, UK, Solid State employs approximately 300 staff
across UK and US, serving specialist markets in industrial, defence and
security, transportation, medical and energy.

 

Solid State was established in 1971 and admitted to AIM in June 1996.  The
Group has grown organically and by acquisition - having made 12 acquisitions
since 2002.

 

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