Solid State PLC Trading & COVID-19 Update (7010V)
August 11 2020 - 2:00AM
UK Regulatory
TIDMSOLI
RNS Number : 7010V
Solid State PLC
11 August 2020
Solid State plc
("Solid State", the "Group" or the "Company")
Trading & COVID-19 Update
Solid State plc (AIM: SOLI), the AIM listed manufacturer of
computing, power and communications products, and value added
distributor of electronic components , announces a trading update
for the first four months of the year ending 31 March 2021.
Trading update for four months of the year to 31 March 2021:
The Board is pleased to announce that trading since the last
update on 8 June 2020 has continued to be ahead of management's
expectations.
Group revenues were stable, down 4% year on year. As previously
announced, the order intake in Q1 was down just under 15% compared
to the prior year; by the end of July 2020, order intake for the
four month period had improved being down 7% on a like-for-like
basis compared to the equivalent period last year. The open order
book at 31 July 2020 was 4% below the year end at GBP38.3m (31
March 2020: GBP39.9m) reflecting the shorter order periods
referenced below.
Cash generation has remained solid with all VAT and PAYE
deferrals repaid in Q1. Net cash at 31 July 2020 stood at GBP3.2m
(31 March 2020: GBP3.2m). In addition, the Group has an unutilised
revolving credit facility with its bank of GBP7.5m.
COVID-19 update:
All of the Group's four manufacturing sites remain open, are
operating effectively and compliant with government guidelines.
COVID-secure re-opening of our offices has been completed and those
working from home that wish to return to work are now able to do so
on a rota system whilst maintaining the COVID-19 safe environment.
The Group's working from home procedures and robust IT systems have
however proven to be both efficient and effective, therefore Group
policy remains that where possible staff should continue working
from home.
The Group's supply chain remains strong with all suppliers now
shipping to schedule. However, lead times on new orders are
lengthening and freight costs from the Far East remain at elevated
levels. Consequently, the businesses are regularly communicating
with their customers to ensure that appropriate levels of free
stock and buffer stock are in place.
All customers have now re-opened to work, although a number of
them are still operating at reduced levels. Consistent with others
in the electronics sector, a significant slow down has been seen in
the oil & gas and civil aerospace sectors. The medical, food
retail, security and defence sectors remain strong, although
reduced confidence in the UK economy has led to some domestic
customers placing orders covering shorter time scales than would
otherwise be expected, with the consequent reduction in forward
order visibility.
Outlook:
The Group's stated strategy is to deliver growth both
organically and through acquisition.
Solid State's pipeline of new product designs continues to
increase, and work progresses on building the portfolio of
potential acquisition targets. With net cash of GBP3.2m and agreed
bank borrowing facilities the Group is well placed to take
advantage of any new acquisition prospects that may emerge later in
the financial year.
Whilst the short-term macroeconomic outlook remains uncertain,
the Board is confident that given its sector diversity and broad
customer base the Group can continue to perform robustly.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
For further information please contact:
Solid State plc 01527 830 630
Gary Marsh - Chief Executive investor.information@solidstateplc.com
Peter James - Group Finance Director
WH Ireland (Nominated Adviser & Joint
Broker) 0117 945 3470
Mike Coe / Chris Savidge (Corporate
Finance)
Jasper Berry / David Kilbourn (Corporate
Broking / Sales)
finnCap (Joint Broker)
Ed Frisby / Kate Bannatyne (Corporate
Finance)
Rhys Williams / Tim Redfern (Sales
/ ECM) 020 7220 0500
Walbrook PR (Financial PR) 020 7933 8780
Tom Cooper / Paul Vann 0797 122 1972
solidstate@walbrookpr.com
Analyst Research Reports: For further analyst information and
research see the Solid State plc website:
https://solidstateplc.com/research/
Notes to Editors:
Solid State plc (SOLI) is a value added electronics group
supplying industrial and military markets with ruggedised/durable
components, assemblies and manufactured units for use in harsh
environments. The Group's mantra is - 'Trusted technology for
demanding applications'. To see an introductory video on the Group
- https://youtu.be/bp4WfLCEc5Y
Operating through two main divisions: Manufacturing (Steatite)
and Value Added Distribution (Solid State Supplies & Pacer);
the Group specialises in complex engineering challenges often
requiring design-in support and component sourcing for computing,
power, communications, electronic and optoelectronic products.
Headquartered in Redditch, Solid State employs over 200 staff
across the UK with a branch office in the USA, serving specialist
markets in oil & gas production, transportation, medical,
construction, security, military and field maintenance.
Solid State was established in 1971 and admitted to AIM in June
1996. The Group has grown organically and by acquisition - having
made 10 acquisitions since 2002.
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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 or visit www.rns.com.
END
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