TIDMSOLI
RNS Number : 8142I
Solid State PLC
21 April 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 12
months ended 31 March 2022 (the "Period" or "FY22").
Following an exceptionally strong finish to the Period, the
Company expects to announce record results with revenues for FY22
of approximately GBP85m (2021: GBP66.3m) up 28% over the prior
year, and adjusted profit before tax for the Period of
approximately GBP7.2m (2021: GBP5.4m) up 33%; both ahead of
recently upgraded consensus expectations(1) . The like for like
open orderbook at 31 March 2022 is up 106% over the prior year at a
record GBP85.5m (31 March 2021: GBP41.5m).
These results reflect a strong performance across the Group,
with notable contributions in electro-mechanical and imaging
systems resulting from the acquisition of Willow Technologies and
Active Silicon respectively. Both these companies have performed
ahead of management's expectations since their acquisition in March
2021.
Like for like organic revenue growth is in excess of 8%, which
is pleasing given the well publicised supply chain and
macro-economic challenges faced in the year and the more recent
conflict in Ukraine which, to date, has had negligible impact.
The Group has enjoyed particularly strong demand in the energy
and aerospace & defence sectors, with the latter now
representing approximately 15% of the Group's revenue. Contracts
awarded in Q4 of the Period by BAE Systems for marine platforms,
and a Component solutions contract for smart meters in India for
CyanConnode, illustrate the breadth of the customer base and
applications secured.
A s Solid State executes on its growth strategy, its favoured
approach to business development and the increased scale of the
Group is allowing it to compete for, and win, previously
inaccessible high value contracts as customers engage across a
broader product and service offering.
As previously reported, Solid State has navigated the long-term
supply chain challenges associated with semiconductor shortages
through careful inventory management and pro-active engagement with
customers to manage order scheduling. Given the success of this
experience, the Group is taking a similar approach to the
management of input cost pressures and inflationary effects of
recent global events, continuing to manage the ongoing supply
challenges and help mitigate potential margin erosion risks. This
is enabling the Group to share the risk with its customers and pass
on some of the cost increases.
The Group's continued strong cash generation has enabled it to
invest significantly in inventory to support its customers in
managing and mitigating the supply chain challenges the industry
has faced, and continues to face, as we enter FY23.
The Board, being mindful of the geo-political influences on both
domestic and international business and acknowledging the ongoing
challenges of COVID-19 in the Period, considers the Group's
performance for the Period to be a great credit to the staff and
the business as a whole.
Solid State continues to deliver on its organic growth strategy
through the targeting of structural growth markets and remains
focused on complementary acquisition opportunities. The record open
order book and trading momentum underpin the near-term prospects
and give the Directors optimism for the future.
(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 GBP80m, and
adjusted profit before tax* of GBP6.5m.
* 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 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
WH Ireland (Nominated Adviser & Joint
Broker)
Mike Coe / Sarah Mather (Corporate
Finance)
Fraser Marshall (Sales) 020 7220 1666
finnCap (Joint Broker)
Ed Frisby (Corporate Finance)
Rhys Williams / Tim Redfern (Sales
/ ECM) 020 7220 0500
Walbrook PR (Financial PR) 020 7933 8780
Tom Cooper / Nick Rome 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 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
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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END
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