Last checked at 20 Oct 2020 07:00
Solid State plc
("Solid State", the "Group" or the "Company")
Trading Update & Notice of Results
Analyst Briefing & Investor Presentation
Solid State plc (AIM: SOLI), the AIM listed manufacturer of computing, power and communications products, and value added supplier of electronic components, announces a trading update and notice of results for the six months ended 30 September 2020.
Trading Update:
Solid State expects to announce revenues and adjusted profits similar to the comparative period in the 2019/2020 financial year, which was itself a record first half performance for the Group. Despite the influences of the COVID-19 pandemic throughout the financial year so far, revenue is expected to be approximately £33.0m (2019: £33.6m) with adjusted profit before tax of approximately £2.50m (2019: £2.67m).
The open order book at 30 September 2020 was £34.3m (30 September 2019: £36.5m) of which approximately £23.7m is expected to be shipped in this financial year. The order book reflects some delays in order intake and a shortening of client order scheduling in response to COVID-19 uncertainties. Pleasingly, the demand from sectors such as medical and security & defence have been robust during the first half. Our cross-sector client exposure and market diversity provides a natural balance giving the Group some resilience.
Solid State has a strong balance sheet with net cash on 30 September 2020 of £3.9m (31 March 2020: £3.2m) and an unutilised £7.5m revolving credit facility with its bank. In the second quarter the Group repaid the VAT and PAYE deferrals and has not drawn down any Government Business Interruption Loans ('CBIL'). Solid State paid its final dividend to shareholders of 7.25p per share in September.
While the outlook remains opaque, the Board currently anticipates an outcome to the 2020/21 financial year similar to the prior year.
Having paused our investment and acquisition activities at the outset of the pandemic, the Group has restarted its capex programme and is re-engaging with potential acquisition targets across both divisions.
Following a strong first half the Board remains confident in Group's future prospects.
Notice of Results:
Solid State expects to announce its results for the six months ended 30 September 2020 on Tuesday 8 December 2020.
Analyst Briefing: 9.30am on Tuesday 8 December 2020
An online briefing for Analysts will be hosted by Gary Marsh, Chief Executive, and Peter James, Group Finance Director, at 9.30am on Tuesday 8 December 2020 to review the results and prospects. Analysts wishing to attend should contact Walbrook PR on solidstate@walbrookpr,com or on 020 7933 8780.
Investor Results Presentation: 4.00pm on Wednesday 9 December 2020
Gary Marsh, Chief Executive, and Peter James, Finance Director, will hold a presentation to cover the results and prospects at 4.00pm on Wednesday 9 December 2020. The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company for free and add to meet Solid State plc via the following link https://www.investormeetcompany.com/solid-state-plc/register-investor. Investors who have already registered and added to meet the Company will automatically be invited.
Questions can be submitted pre-event to solidstate@walbrookpr.com, or in real time during the presentation via the "Ask a Question" function.
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 PR |
Gary Marsh - Chief Executive Peter James - Group Finance Director | investor.information@solidstateplc.com |
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WH Ireland (Nominated Adviser & Joint Broker) | 0117 945 3470 |
Mike Coe / Chris Savidge (Corporate Finance) Jasper Berry / David Kilbourn (Corporate Broking / Sales)
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finnCap (Joint Broker) Ed Frisby / Kate Bannatyne (Corporate Finance) Rhys Williams / Tim Redfern (Sales / ECM) | 020 7220 0500 |
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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 Supplies (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.