Solid State Share Chat (SOLI)

Solid State plc (SOLI.L) is well positioned within the UK’s growing semiconductor and defence electronics sector, operating in the specialist hardware layer that supports mission-critical technology. The company supplies rugged electronic components, embedded systems, power solutions and communications equipment for demanding environments, giving it exposure to areas such as aerospace, defence, security, industrial automation and high-reliability electronics.

As demand grows for resilient communications, sovereign technology capability, advanced electronic systems and hardware built for extreme conditions, SOLI offers a compelling UK-listed way to follow this broader next-generation technology trend.

Cavendish have raised their forecast by 8% to 10.3p EPS for the year just gone.

They retain their 253p target price as follows:

"Positive FY26 trading update – EPS upgrade of 8.0%

The Group has announced a positive FY26 trading update, highlighting strong 4Q trading, continuing the positive momentum seen throughout the year. This means the Group is now expected to slightly exceed revenue expectations and also exceed adjusted PBT expectations. It also highlights robust order intake in the period increasing the order book to £106.5m. We therefore upgrade our FY26E EPS by 8.0% to 10.3p, with FY27E seeing strong momentum in the order book, but unchanged profit expectations given the uncertain geopolitical and supply chain outlook.

We maintain our 253p target price offering significant upside to current levels and we see this update as providing greater confidence in the shares, which have slipped recently to compelling levels, with a FY27E P/E of just 13.2x, which underwrites our Buy rating.

— Trading update: The Group has experienced a strong end to the year with robust Q4 trading building on the positive momentum seen in the prior three quarters. As such management expects revenue to exceed expectations slightly and also adjusted PBT to exceed expectations. Growth has been seen across all divisions.

— Divisional trading: The Components division delivered a strong YoY increase, with new design wins in the UK and US underpinned by improving market conditions. The Power division has seen a significant improvement following the management reorganisation and investment in capabilities. A significant driver of this increase has been in the defence sector, with drone and other autonomous technologies in high demand. It also comments that significant opportunities continue to arise in the defence sector. The Systems division reflects ongoing strong demand in communications, with robust momentum in antenna and integrated systems capabilities. Order book momentum continues to underwrite the anticipated sales mix.

— Order book: The order book has also seen strong growth rising from £97.0m on 30 November 2025 to £106.5m currently, largely reflecting the strong order intake in the Power division of close to $20m. It also includes the initial order from the new Communications customer previously announced in 3Q with shipments expected for 1Q 26/27. Most of the order book is expected to be delivered in the next 18 months. Over recent weeks lead times for certain components such as DRAMs have extended reflecting geopolitical uncertainty and AI demand growth."

"Valuation:

We maintain our TP at 253p, based on a FY27E P/E of 24.0x, which seems reasonable given the high momentum and rerating seen among defence-related stocks. The shares have drifted in the past month, due to the Iranian conflict, and trade on a FY27E P/E of just 13.2x, which looks much too low in our opinion, offering strong upside reinforced by this positive update, with a

Lse indicator charts functionality restored.

RSI(relative strength index), bullish RSI failure swing where RSI has crossed above all previous RSI swing highs on the one year chart. Bullish double bottom price pattern in place, spanning 5 months, which provides a base for a subsequent uptrend. Recent price tops, show a gentle downtrend, with value being 174.5 for current week, suggesting sp requires to break above that value for a confirmed trend.

My previous comment regarding required volume and the two day close above 172.5 is an additional interim requirement. DYOR.

Bearish March 2026 monthly outside price bar reversal, when sp today crossed above outside bar high of 172.5. Validity of breakout depends on volume and whether sp can remain above 172.5 for 2 days close. Future sp forecast is 232.5, calculated as outside bar range X 2, added to outside bar high of 172.5.

SOLI is top sector riser today and sector chart shows bullish major higher high, so relative strength to rest of equity market.

Lse indicator charts no longer working so viewed site at live charts instead.

Empirical sp projection from preceding congestion pattern suggests current week value of 188.05, with weekly increase of 1.94. DYOR.

And on decent early volumes too. Perhaps the time for re-rating has arrived.

Agreed. I am surprised, given the various current conflicts around the globe demonstrating the decisive impact of drone and electronic warfare, that the company has not generated more excitement recently.

Long term holder and has given me some decent returns. Has lost its way over last few years after consistently growing profits. I feel like it is turning a corner and hopefully will resume momentum end of 2026 and expect 2027 to be a very good year.

GLA

What’s most interesting for the long term is the drone/UAV strategy. Between the Custom Power contract wins in the US and the push for 'sovereign capability' in the Systems division, they seem to have carved out a high-margin niche in the defence drone supply chain.

From the news wires just now:

"Berenberg raises Solid State price target to 245 (240) pence - 'buy'"

Cavendish's target price is 253p, so still loads of upside here.

Loved it!

Nice - the year end trading update shows SOLI trading well ahead of expectations.

In particular:

"strong demand from the drone and other autonomous technology applications with significant new and emerging defence opportunities"

Plus in Components:

"exciting new design wins in the UK and the US underpinned by improved market conditions"

And in Systems:

"strong demand for communications products in the period combined with building opportunities for its antenna and integrated systems capabilities"

SOLI are positioned in just the right high growth areas going forward:

Https://uk.advfn.com/stock-market/london/solid-state-SOLI/share-news/Solid-State-PLC-Trading-Update/98238943

Just to let shareholders and prospective investors know that Solid State will be exhibiting & presenting at Mello Birmingham on 22nd April

Newly appointed CEO John Macmichael and Peter James CFO will be presenting and available to meet investors.

Tickets available via our website.

If you are not familiar with us at MELLO, we have created an investor conference that will include top quality fund manager speakers including Simon Barnard (Smithson Equity Fund), Alyx Wood (Kernow), Tom Dorner (Polar Capital Global Financials). Popular investors Paul Hill, Paul Scott, Jamie Ward, Mark Simpson will also be giving talks, on panels and in attendance.

The conference will feature panel sessions such as our popular Mello BASH (Buy, Avoid, Sell, Hold) with professional investors and analysts like Paul Scott. There will be over 25 exhibiting & presenting companies including Victorian Plumbing, Serabi Gold, S&U, Capital Gearing Trust and many more.

Get 25% off your ticket with code MBLSE25

Hmm, thinks afoot, me thinks

Lump we are here but no significant news yet to generate conversation, i see this as one of my steady away shares rather than game changer

Looks decent at the moment. nice run to £3 probably in weeks ahead

David Kempton, the long-term investor and columnist on Citywire, has just published this article on "The top UK stocks I’m buying for 2026", including SOLI:

Https://citywire.com/funds-insider/news/david-kempton-the-top-uk-stocks-i-m-buying-for-2026/a2481467

"Elsewhere, I added to Solid State (SOLI), which manufactures and distributes electronics for a number of sectors, including ‘mission critical’ technologies in the UK’s armed forces.

First half profit was significantly boosted by the realisation of a delayed NATO order and other significant contracts in the pipeline include demand from the US and UK militaries for medical and energy needs."

hello, anybody else out there? notable increase in trades today.

am i talking to myself...

yes you are.

hang on a sec, who are you?

oh ****, i'm talking to myself again

Some more of these would be welcome..

Solid State plc (AIM: SOLI), the specialist value-added supplier and design-in manufacturer of computing, power, and communications products, is pleased to announce that its Power Division, Custom Power, has secured several major orders with a total value of $7.4 million since the half year ending 30 September 2025.

The orders relate to the supply of specialist power packs for applications across unmanned aerial vehicles (UAVs), maritime technologies, portable medical devices, industrial applications and the energy sector.

In the United States, Custom Power has secured repeat and new demand from both its Tier 1 defence and security (D&S) customers in the air and maritime domains and commercial customers for its advanced battery technologies used in autonomous vehicles. In the United Kingdom, follow-on orders have been secured from key customers in the medical device, industrial and energy sectors.

Hello, we have some blue!

Looking much better.. assault on £2 incoming

Thanks Rivaldo

Upward momentum. The russians doing us a favour here. Im still giving to ukraine via telegram

Methinks a good rns isn't far away. People in the know buying

10 Companies to follow in 2026

2025 was the year AIM showed its resilience, rising nearly 10pc after enduring years of higher interest rates in the wake of the pandemic and continued economic and geopolitical uncertainty.

It’s been the market’s best year for fundraising since the boom year of 2021: by the end of August AIM-listed companies had raised £2.1bn from IPOs and secondary fundraisings (shares sold by current shareholders rather than issued by the company itself), more than double the £889m raised in the previous 12 months.

AIM has continued to dominate Europe’s growth markets, accounting for 53pc of all capital raised across European small cap indices over the past five years: more money than its five nearest European rivals combined. IPOs on London’s junior market rebounded through the 2024/25 financial year, 16 companies listing so far against just nine last year. The average amount of new money raised per IPO was £9.9m, up from the low of £6.8m recorded in 2022/23.

And there are good grounds for believing the revival will gather pace in 2026. The brutal shakeout over the last few years has left a core of higher quality, better capitalised companies better able to inspire investor confidence. As a junior market AIM is particularly well positioned to benefit from the prospect of lower interest rates that will ease the debt burden of smaller companies. And it is a particular focus of ongoing efforts by policy makers (across all major parties) and regulators to improve the competitiveness of London’s markets and direct more investment into UK assets.

In his annual review of the small cap sector Investors’ Chronicle associate editor Simon Thompson notes that UK equities continue to be undervalued relative to US shares, particularly AIM-listed tech. Plenty of opportunities exist for canny stockpickers amid the many small caps with low earnings multiples.

The prospect of lower interest rates and – in due course – market reform augur well for AIM’s continued recovery in 2026. And though investors rightly look to the junior market for short-term gains they should not lose sight of one of the most well observed market patterns, frequently highlighted by TMS: the tendency of small caps to outperform their larger counterparts over time. The pattern has asserted itself in recent history, small and mid-sized companies generating a return premium over their larger peers of 6pc between 2009 and 2021. AIM was designed precisely to provide a framework for small cap growth over extended periods.

For investors willing to do their homework, manage risk, spread their money over different sectors, and hold on to promising shares through tough times, AIM offers as many opportunities as it ever has.

Here, we look at 10 Companies from a variety of sectors that have performed in 2025 or which may be positioned for a better year ahead. Also look out for our roundup of new year selections for Oil & Gas plus mining

Just a dip, and looks like it finished. Shares go up and down.. hopefully now more UP

Cracking results 2 weeks ago yet share price is back close to pre-result levels!! Can anyone explain the logic? Future looks great so hopefully we'll see it take off in the new year.

Good to see the new Deputy Chairman buying £20k's worth of shares at 159p:

Https://uk.advfn.com/stock-market/london/solid-state-SOLI/share-news/Solid-State-PLC-Share-Purchase/97428468

Very little available to buy, different from last week hmm

Excellent article. Good start today. This could easily double in 2026 imo

Tip conclusion - note the upgrade to Buy (from Hold):

"The acquisition strategy aligns with the board’s goal to grow the underlying core business (normalised for the periodic revenue peaks associated with initial adoption of communications technology) and deliver EPS of 20p by 2030. If the group succeeds in doubling EPS over the 2026-2030 forecast period, then the shares should re-rate well beyond Cavendish’s target price of 253p, which is only based on earnings projections for next year and embeds a target PE ratio of 24.

So, with full-year earnings estimates de-risked, the group winning orders and the forward earnings multiple modest, it’s time to upgrade our previous hold recommendation (‘Add this small-cap defence stock to your watchlist’, IC, 8 July 2025) to buy."

Tip continued part 2:

"Importantly, the order book looks increasingly robust, having increased by 14 per cent to £87.3mn year on year, of which more than 60 per cent is scheduled for delivery in the second half to de-risk full-year revenue estimates (£145mn). Furthermore, since the half-year end, the group has secured an initial order worth $10.8mn (£8.1mn) under Project CAIN, a major defence programme, for a UK government end user. The order represents a significant milestone in Solid State’s strategy to deliver cutting-edge, mission-critical technologies to the UK’s armed forces and security community. Delivery of these initial systems is scheduled for the first half of 2026.

In addition, the group’s power division, Custom Power, has recently won several major orders with a total value of $7.4mn. These relate to the supply of specialist power packs for applications across unmanned aerial vehicles, maritime technologies, portable medical devices, industrial applications and the energy sector.

In the US, Custom Power has secured repeat and new demand from customers in the defence, air and maritime domains, as well as from commercial customers for advanced battery technologies used in autonomous vehicles. In the UK, follow-on orders have been secured from key customers in the medical device, industrial and energy sectors.

Earnings estimates de-risked

The current order book is now £97.4mn, which helps to de-risk revenue expectations of £149mn for the 2026-27 financial year, too. Brokerages Cavendish and Zeus Capital have pencilled in 44 per cent growth in full-year pre-tax profit to £7.2mn, rising to £8mn the following financial year, to produce consensus earnings per share (EPS) of 9.5p and 10.4p. On this basis, the shares are rated on forward price/earnings (PE) ratios of 15.5 and 14.2, respectively, an 11 per cent discount to Solid State’s closest peer and a modest rating for a modestly leveraged business targeting growth markets.

Moreover, the board has identified a strong pipeline of acquisition opportunities to internationalise the group and replicate its established UK technology and expertise in new locations. This is a lower-risk way of accelerating regional growth and a sensible strategy. Analysts anticipate current net debt of £7.1mn falling to £3.8mn-4.8mn (March 2026) and £2.1mn-2.6mn (March 2027), so the group has the funding available to make acquisitions. The projected deleveraging reflects cumulative free cash flow of £10mn across the two financial years, a healthy sum in relation to the group’s market capitalisation of £84mn."

Tipped by the IC's Simon Thompson - subscriber-only, so if anyone has the conclusion....

Https://www.investorschronicle.co.uk/content/f8d7503c-d9d2-42b2-ae0d-d4f0f328b6ca

"Simon Thompson: The group is winning new orders and a modest rating fails to reflect its traction

This defence small cap is back on track

Published on December 1, 2025

by Simon Thompson

• First-half revenue up 38 per cent to £85.1mn

• Adjusted operating margin improved from 5.1 to 6.5 per cent

• Underlying pre-tax profit almost doubled to £4.9mn

• Closing order book up 14 per cent to £87.3mn

• Forward PE ratio of 15.5 (2026) and 14.2 (2027)

• Prospective dividend yield of 1.9 per cent

Worcestershire-based value-added electronics group Solid State (SOLI:147.5p) reported a first-half profit almost as large as for the whole of the previous financial year, albeit it is recovering from a low base.

That’s because a delayed order with the Nato Support and Procurement Agency, the main service provider for Nato, was finally delivered, thus enabling £23.3mn of revenue from defence and security shipments to be booked in its systems business (comprising antennas, communication equipment and computing systems). Adjusting for “periodic communications programme revenue” and currency movements, underlying revenue increased by 3.6 per cent.

etc"

Cavendish have retained their 253p target price, noting that SOLI is "significantly undervalued" and their forecasts are "cautious".

They summarise:

"Interims show good progress in challenging underlying markets, with a strong advance in the period from the booking of the previously delayed large communications contract. Recent contract wins give evidence of robust commercial traction continuing. Investment in facilities and capability offers a scale opportunity to Tier 1 customers in the defence and security markets. No change to forecasts, but with greatly strengthened confidence due to recent contract wins. The shares look significantly undervalued given the medium-term opportunity, with our 253p target price pointing to significant upside."

"Valuation: The shares continue to trade at low levels despite recent positive contract win news flow. The shares trade on a FY27E P/E of 13.5x and EV/EBITDA of 7.4x. This looks much too low in our opinion, given its recent commercial traction, investments to scale up facilities and its exposure to medium-term growth markets such as defence and security. With cautious forecasts but with significant definable opportunities for medium-term EPS uplift, we retain our 253p target price, offering significant upside."

Nice move up, with the offer price now at 155p.

IMO there's been an overhang for some time, with buying possible at well within the spread (I topped up further yesterday doing this).

This morning after some early buying, and with that early buying price moving up to 149p, there are now buys coming in at 151p/152.5p. Hopefully an indication that stock is becoming harder to find.

Excellent interim results yesterday.

With 6.5p EPS in H1 alone SOLI look very well placed to beat expectations for the year.

Particularly as the order book has zoomed up to £97m from £87.3m at the 30/9 period end.

With strong involvement in defence and security, including drones, plus robotics, naval maritime, medical etc - all sectors which should continue to thrive - and industrial looking decent despite a weaker overall sector, SOLI are well placed to grow earnings nicely.

Buy.....

Anyone else put in a fill or kill buy? I am hoping to add more shares before the market wakes up to the news.

$7.4m of new battery pack orders across "unmanned aerial vehicles (UAVs), maritime technologies, portable medical devices, industrial applications and the energy sector".

Which just shows the breadth of SOLI's applications.

I particularly like the sales into UAVs and autonomous vehicles specified in the rest of the RNS:

Https://uk.advfn.com/stock-market/london/solid-state-SOLI/share-news/Solid-State-PLC-Custom-Power-Orders-totalling-7-4m-across-UK-US/97279986

Sad news.

Strangely you can’t buy many

Decent company here. Great contracts, big names MoD etc. I’m liking what the manufacturing subsidiary Steatite is up to also.. bagged a contract with MoD

Steatite is a technology company that has significant contracts and partnerships with the UK Ministry of Defence (MoD) to provide ruggedized, mission-critical electronics. They supply secure military-grade communication systems, such as the Persistent Systems Wave Relay MPU5 radio, and are developing integrated systems under projects like Project CAIN. Additionally, Steatite is an approved supplier of custom battery packs and power solutions for various defence applications, from land to air and sea operations.

New note from Edison - some extracts:

Https://www.edisongroup.com/research/h1-update-supports-full-year-expectations/BM-2361/

"Solid State — H1 update supports full year expectations

Solid State has announced an encouraging first half assisted by its exposure to defence, while also benefiting from delayed sales from the previous financial year. With expected first half profit equivalent to 66% of full year consensus, along with recent contract awards announced, the group is well positioned to deliver on FY26 market expectations and further growth to meet management’s longer-term targets."

"H1 performance and order book support full year

The group has started H2 with a solid opening order book of £87.3m, with more than 60% expected to be delivered in H2, which supports market expectations for H2 revenue of c £60m. The opening order book was down from £108.5m at the start of H1, albeit this included the delayed business delivered in H1. However, with recent wins such as the $10.8m Project CAIN defence order, the order book at 31 October stood at £96.6m. While there are clear uncertainties, such as tariffs, the order book provides management with confidence in meeting expectations for the full year.

Half year results will be published on 1 December with management presenting on 2 December at 2pm on the Investor Meet Company platform."

Cavendish retain their 253p target price.

Interesting comment that "The Power division has shown progress, with demand shifting towards added value activities, and has gained orders for battery systems from Tier-1 customers in the robotics, drone and naval sonar buoy sectors".

They summarise:

"Robust trading update confirms trading in line for FY26E

The group’s 1H trading update highlights a robust increase in revenue and profit, boosted by the delivery of the delayed large communications order and strong defence and security demand. Underlying growth was resilient at 5-7% with subdued industrial markets, US dollar headwinds and some effect from US tariff uncertainties. The £87.3m open order book significantly underwrites 2H expectations and management expresses confidence in achieving existing FY26E forecasts. The recent Project CAIN contract win highlights the opportunity for further significant contract wins as the group increasingly develops relationships with Tier-1 customers.

We maintain our 253p target price, offering significant upside potential from the current FY27E P/E of 13.6x as new orders and rising margins offer an attractive proposition."

"Valuation:

SOLI is well positioned to gain as it enhances its position to Tier-1 customers, with robust demand in the defence/security sector expected to continue in the medium term. The shares remain undervalued in our view, trading on a FY27E P/E of 13.6x, and our 253p target price offers significant upside."

Today's H1 update struck me as very encouraging.

I've been watching for years and have today bought in for the first time. Very pleased to have bought a decent stake at between 137p-140p.

There may have been an initial overhang, but this seems to have largely gone as the maximum stock I could buy online not long ago was only 15k.

With H1 having delivered almost 60% of the year's forecast revenues - and 66% of PBT - expectations of meeting forecasts look pretty nailed on at the least.

And with a heavy involvement in Defence and Security SOLI should continue to benefit from the growth in this sectoe for some time to come.

Good news....so the sp drops?

"an initial order valued at US $10.8 million under Project CAIN, a major defence programme, for a UK Government end user."

Well done SOLI!

Modest contract but feels to me like a good time to climb back on board.

Nice to see some buys here.

Technical bounce or something more?

I should have gone short.

Need to get below £1 on this one, and ideally we need to see that management know what they are doing - not convinced with their buy and build execution.

On minimal trades/values this past few days. odd

Looks like the orders are sensibly now being nicely accelerated to UK specialists, and having taken advantage and set up a md led tour of this business in the recent year or two m not surprised to see this companies expertice being utilised.

Your Missing another Mug Doug.

Good to see this rerating back to a more realistic level, a profitable dividend payer should not have fallen this far in my opinion.

Assume away and keep wondering Noclue.

Hows those £3.78 BOO shares you were bragging about doing these days? Oh yeah clinging onto 30p before likely administration. Nice

Spin it all you like but that post says "wondering" and "might" ... sorry, nothing you posted says that you actually DID cash out. Can only assume you're still holding and are deep underwater as usual.

No worries here for me Noclue Dung, have a read of my last post here

"Daytradenovice

Posts: 12,540

Price: 1,355.00

No Opinion

RE: Im in19 Nov 2023 18:01

Month since my buy in here, timed it quite nicely for once, wondering whether to bail out with the profit before the results day. Might just remove my cash in stake and leave the free runners, running."

Stated plan worked out a real treat eh!

How are your £3.78 BOO shares doing? Thats £8k worth of 'investment' you wont be seeing again lol lol lol lol