TIDMSOLI
RNS Number : 2169B
Solid State PLC
10 February 2022
Solid State plc
( "Solid State", the " Group " or the "Company" )
Trading Update
Solid State plc (AIM: SOLI), the specialist value added
component supplier and design-in manufacturer of computing, power,
and communications products, announces a trading update for the
year ending 31 March 2022 ('the Period').
Following a continuation of the strong trading performance
reported in the Interim Results in December, Solid State now
expects to report revenues for the Period slightly ahead of current
consensus expectations(1) of at least GBP80.0m (2021: GBP66.3m)
with adjusted profit before tax well ahead of current consensus
expectations(1) .
This trading momentum is reflected across both the Systems and
Components divisions, with highlights being the continued good
margin mix from projects delivered across the Group and very strong
trading at the recently acquired Active Silicon business. As a
result of the strong performance at Active Silicon, the Group
expects to further increase the earn out provision by GBP0.5m which
will be included in net debt at year end. Forecast year end fair
value of deferred contingent consideration is now GBP5.75m (Active
Silicon + Willow Technologies).
Order intake remains strong, with a record open order book at 31
January 2022 standing at GBP74.1m (30 November 2021: GBP70.3m).
The global supply chain continues to present challenges for both
Solid State and its customers. In many instances the risks are
being mitigated through collaboration with the client and supplier,
and through order management; complemented by continued strong
Group cash generation to support investment in working capital to
manage the potential shortages.
The Group had net cash with banks of GBP0.4m at 31 January 2022
and has retained its GBP3.0m overdraft and GBP7.5m Revolving Credit
Facility which is committed until November 2022.
Commenting on trading, Gary Marsh, Chief Executive at Solid
State, said:
"The year continues to be busy and challenging, with widely
reported supply chain disruption, however the team is working very
hard to collaborate with both customers and suppliers to ensure
timely supply of both components and systems. The depth of our
relationships and our balance sheet strength is helping greatly in
being able to ensure consistent supply.
"The record open order book gives the Board confidence in the
prospects for Solid State."
(1) Analysts from brokers WH Ireland Limited, finnCap Limited,
and Edison Investment Research Limited, provide equity research on
Solid State, and the Company considers the average of their
research forecasts to represent market expectations, being, for
Solid State's 2021/22 financial year, revenue of GBP78.4m, and
adjusted profit before tax* of GBP5.9m.
* The adjustments relate to IFRS 3 acquisition amortisation,
share based payments charges, and non-recurring charges in respect
of redundancies and acquisition costs and fair value
adjustments.
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
Gary Marsh - Chief Executive
Peter James - Group Finance Director
WH Ireland (Nominated Adviser & Joint
Broker)
Mike Coe / Sarah Mather (Corporate
Finance)
Fraser Marshall (Corporate Broking) 020 7220 1666
finnCap (Joint Broker)
Ed Frisby (Corporate Finance)
Rhys Williams / Tim Redfern (Sales
/ ECM) 020 7220 0500
Walbrook PR (Financial PR) 020 7933 8780
Tom Cooper / Nick Rome 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 commercial, industrial and military markets with durable
components, assemblies and manufactured units for use in specialist
and harsh environments. The Group's mantra is - 'Trusted technology
for demanding applications'. To see an introductory video on the
Group - https://bit.ly/3kzddx7
Operating through two main divisions: Systems (Steatite &
Active Silicon) and Components (Solid State Supplies, Pacer, Willow
Technologies & AEC); the Group specialises in complex
engineering challenges often requiring design-in support and
component sourcing for computing, power, communications,
electronic, electro-mechanical and opto-electronic products.
Headquartered in Redditch, UK, Solid State employs approximately
300 staff across UK and US, serving specialist markets in
industrial, defence and security, transportation, medical and
energy.
Solid State was established in 1971 and admitted to AIM in June
1996. The Group has grown organically and by acquisition - having
made 12 acquisitions since 2002.
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END
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