LONDON (Alliance News) - Computer and electronic products manufacturer Solid State PLC on Tuesday posted a reduced annual profit due to margin pressures in its value added distribution division.
In its financial year ended March 31, Solid State recorded pretax profit of GBP2.5 million, down from GBP2.7 million the year before.
The company's revenue, however, increased to GBP46.3 million from GBP10.0 million.
The company's value added distribution, which consists of radios and battery packs, recorded lower margins than Solid State's other divisions. As it contributed more to revenue in the company's most recent financial year, it also contributed to the narrowing of Solid State's gross margin to 27.5% from 30.1%.
"This change in the sales mix has meant the strong revenue growth has not translated in to the same level of growth in gross profit," the company said in its annual report.
Solid State will pay a final dividend of 8 pence per share, making its full year dividend flat at 12p.
"The board is encouraged by new order intake during the first two months of our new fiscal year, giving confidence that the group remains on track to deliver in-line with our expectations," said Solid State Chairman Tony Frere.
"The group open order book at 31 May 2018 was at a record GBP23.0 million...up 11% on the prior year," Frere added.
Shares in Solid State were trading down 2.8% at 306.10p on Tuesday.
Solid State (SOLI)