Solid State PLC Trading Statement & Notice of Results (2662E)
October 17 2018 - 2:00AM
UK Regulatory
TIDMSOLI
RNS Number : 2662E
Solid State PLC
17 October 2018
Solid State plc
("Solid State" or the "Group")
Trading Statement &
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, is pleased to announce a
trading statement for the six months ended 30 September 2018.
Group revenues for the period will be ahead of the comparative
period at approximately GBP23.5m (2017: GBP22.5m) reflecting good
trading in both the Value Added Distribution and Manufacturing
divisions.
The Value Added Distribution division has had a particularly
strong period, delivering growth in revenues and margins. In
addition to this, the Division has benefitted from a one off client
order of circa GBP1.0m in the first half. Of the two divisions,
Value Added Distribution feels the greater benefit of foreign
exchange tailwinds. This significant growth has meant that Value
Added Distribution now represents just over half of Group revenues
in H1. The securing of the exclusive VPT franchise announced in
April 2018 is expected to positively impact the second half.
Whilst revenues in the Manufacturing division are lower than in
the prior year, we have seen improvement in the gross margin
percentage due to the sales product mix in the period. This margin
benefit in Manufacturing has ensured consistent Group margins,
relative to the comparative period, despite the change in split
between the divisions. Looking forward, the strong open order book
in the Power business unit is anticipated to result in an improved
Manufacturing revenue performance in the second half. This would
return Manufacturing's share of Group revenue to be more than half
in the full year.
Entering the second half, the Board considers prospects for the
year to be positive and expects the Group to exceed market
expectations for the current financial year. The Group continues to
pursue margin enhancement initiatives across both divisions and to
progress its acquisition strategy, where the Directors continue to
review an active acquisition pipeline.
The open order book at 30 September 2018 stood at GBP29.6m, an
increase of 64%, setting a new record for the Group, of which
GBP18.1m is scheduled for delivery in the current financial year.
At the comparative point of 30 September 2017, the open order book
stood at GBP18.0m of which GBP12.4m was scheduled for delivery
before 31 March 2018.
Notice of Results:
Interim Results for the six months ended 30 September 2018 are
expected to be released on Tuesday 20 November 2018.
Investor Site Visits:
Solid State conducts site visits for investors at its Redditch
head office where operations for both the value added distribution
and manufacturing operations can be seen. Those interested in
attending should contact Tom Cooper on tom.cooper@walbrookpr.com or
0797 122 1972.
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 / Chris Savidge (Corporate
Finance)
Jasper Berry / David Kilbourn (Corporate
Broking / Sales)
finnCap (Joint Broker)
Ed Frisby (Corporate Finance)
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 four locations. 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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