TIDMSOLI
RNS Number : 9258K
Solid State PLC
13 April 2018
The following amendment has been made to the 'Trading Statement'
announcement released on 12 April 2018 at 07:00 a.m. under RNS No
6481K.
The original announcement did not include the word "adjusted" in
respect to the Group profit before tax, in the second
paragraph.
All other details remain unchanged.
The full amended text is shown below.
13 April 2018
Solid State plc
("Solid State", the "Group" or the "Company")
Trading Update &
Notice of Results
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 12 months ended 31 March 2018.
The Board is pleased to announce that the adjusted Group profit
before tax for the financial year 2017/18 will be in line with
market consensus forecast at approximately GBP3 million. Year on
year Group revenue is expected to be slightly ahead of expectations
at in excess of GBP45.5 million, close to 15% growth (2017:
GBP40.0m).
The Distribution & value added services division has
maintained very strong organic growth of close to 18%, and the
Manufacturing division has delivered in excess of 10% increase in
reported revenues.
Product line margins have been maintained, however as reported
at the half year, the customer and product mix in any period
ultimately determines the overall Group gross margin, which, in
this period, will show a reduction on the comparative period.
The revenue performance from the Distribution division and Power
business unit has been stronger than expected which is very
pleasing. We are continuing to make good progress with a
significant development contract within our Power business unit and
franchise discussions within the Distribution division; both of
which are anticipated to contribute to 2018/19.
At our Interim Report in October 2017, we reported that the lead
time to win new business within our Communications business unit
had been longer than expected. This trend has continued in the
second half.
A significant proportion of our sales in the Communication
business unit are export. Securing overseas opportunities is
proving harder than we anticipated; particularly in North America
where it appears domestic suppliers are being preferred on contract
awards. As a result of these factors we are reducing our
expectations for the Communications business unit for the financial
year 2018/19, which will have a negative impact on margin mix for
the Group in the financial year.
Albeit the financial year 2018/19 will be impacted by the issues
highlighted above in the Communications business unit, looking
forward, management remains confident that the prospects for the
Group's other business units remain positive. We have delivered
significant organic growth for the year ended 31 March 2018,
maintained margins across our markets and customers and have
increased the open order book at 31 March 2018 to GBP19.6m (31
March 2017: GBP18.4m).
The Board is confident that its long-term strategy will continue
to deliver organic growth which can be complemented by targeted
acquisitions to meet its ambitions. The success of the organic
growth strategy is now in evidence and the Board also continues to
actively engage with potential acquisition targets that offer a
complementary fit to the Group product offering, client base and
structure.
Notice of Results and Investor Lunch:
Final results for the 12 months ended 31 March 2018 are expected
to be released on 3 July 2018.
An investor lunch for Private Client Investment Managers and
Private Investors will be held in the week following the
announcement of the Final results at St Pauls, London. Those
interested in attending should contact Tom Cooper on 0797 122 1972
or tom.cooper@walbrookpr.com.
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 / Ed Allsopp (Corporate
Finance)
Jasper Berry / David Kilbourn
(Corporate Broking / Sales)
finnCap (Joint Broker)
Ed Frisby / Kate Bannatyne
(Corporate Finance)
Emily Morris / Rhys Williams
(Corporate Broking / Sales) 020 7220 0500
Walbrook PR (Financial PR) 020 7933 8780
Tom Cooper / Paul Vann 0797 122 1972
tom.cooper@walbrookpr.com
Notes to Editors:
Solid State plc (SOLI) is a leading value added group of
companies providing specialist design-in and manufacturing services
to those acquiring computing, power and communications products and
electronic component services for use in harsh environments.
Serving niche markets in oil & gas production, medical,
construction, security, military and field maintenance, Solid State
acts as both a component supplier to OEMs and bespoke manufacturer
of specialist units to clients with complex requirements.
Headquartered in Redditch, Solid State employs over 200 staff
across five sites. Solid State operates through two main divisions:
Solid State Supplies and Steatite.
Solid State was established in 1971 and admitted to AIM in June
1996.
Solid State's Vision:
We are well placed to exploit the significant opportunities that
exist in all of our target markets; we aspire to double the size of
the business over the next five years. We will deliver this through
a combination of organic growth and strategic acquisitions.
Solid State's Mission:
"To remain at the forefront of electronics technology,
delivering reliable, high quality products and services. Adding
value at every opportunity, from enquiry to order fulfilment;
consistently meeting customer and partner expectations."
Solid State's Strategy:
Our strategy has three key elements:
1) Investment in our people, our technical knowledge and our
capabilities, to ensure we remain at the forefront of electronics
technology and be the 'go to' technical solutions provider of
choice, enabling us to develop and maintain long term client
relationships as a trusted adviser with the sector 'know how'.
2) Continue to develop our strategic partnerships with customers
and suppliers within the electronics industry, building our
portfolio of value added services.
3) Targeting strategic acquisitions which are aligned with our
core capabilities which provide access to new markets or deepen our
knowledge, ability and enhance the value we can add to our
customers.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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