TIDMSOLI
RNS Number : 4729L
Solid State PLC
06 September 2023
Solid State plc
("Solid State", the "Group" or the "Company")
AGM Statement
Solid State plc (AIM: SOLI), the specialist value added
component supplier and design-in manufacturer of computing, power,
and communications products, announces an AGM Statement ahead of
its Annual General Meeting being held at 2 Ravensbank Business
Park, Hedera Road, Redditch, B98 9EY at 9.30am today.
The Directors are pleased to report a strong start to the
financial year across both divisions, as the Group continues to
benefit from its robust and diverse customer base across multiple
sectors. The geopolitical drivers have meant the Group has seen
particularly strong order intake in the security & defence
sector, with the medical sector continuing to see good demand and
new design opportunities.
Custom Power, acquired just over a year ago, is now an integral
part of the Group, providing US battery power production. Solid
State has continued to see the benefits of the excellent
collaboration between the Group's UK and US teams to create product
and market development opportunities, demonstrating the value of
the strategy of internationalising the Group and positioning it to
take advantage of this high growth sector.
The NATO contract referred to in previous announcements has now
been substantially delivered, with the result that the associated
inventory and payables position reported at the final results in
July is unwinding.
Solid State continues to maintain a strong balance sheet which
provides the business with advantageous commercial and competitive
strength for working capital needs and M&A opportunities.
The Group continues to invest in securing inventory to manage
the delivery of its order book through timely order fulfillment and
supply chain risk mitigation. As previously reported, we expect to
see net debt continuing to fall in the first half, and to be
consistent with expectations for the full year (1) .
The order book profile, driven by customer order schedules, is
continuing to normalise as lead times improve. The order book
remains strong totaling GBP101.1m with circa 65% expected to be
delivered in the remainder of the current financial year.
The Board is confident in meeting the recently upgraded
forecasts (1) for the full year and in managing supply chain and
input cost risks which remain stubborn, whilst also being mindful
of the current macro-economic risks.
Solid State remains ambitious and continues to review
acquisition opportunities and organic growth initiatives, with a
view to meeting its new 2030 strategic objective of maintaining
compound annual growth in total shareholder return in excess of
20%.
A further trading update will be announced towards the end of
October in respect of the first six months' trading of this
financial year.
(1) Cenkos Securities plc, WH Ireland plc, and finnCap Limited,
provide equity research on Solid State, and the Company considers
the average of their research forecasts to represent market
expectations for Solid State's FY2023/24 financial year, being
revenue of GBP147.3m, adjusted profit before tax* of GBP11.9m and
net debt of GBP3.1m.
Investor Site Visits to Head Office in Redditch
Solid State holds site visits to its head office in Redditch
where operations from both the Systems and Components divisions can
be seen. Interested investors should contact
solidstate@walbrookpr.com .
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ("MAR"). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
For further information please contact:
Solid State plc Via Walbrook
Gary Marsh - Chief Executive
Peter James - Group Finance Director
Cenkos Securities plc (Nominated
Adviser & Joint Broker)
Adrian Hadden / Callum Davidson (Corporate
Finance)
Jasper Berry (Sales) 020 73978900
finnCap (Joint Broker)
Ed Frisby (Corporate Finance)
Tim Redfern (Sales / ECM) 020 7220 0500
Walbrook PR (Financial PR) 020 7933 8780
Tom Cooper / Nick Rome / Joe Walker 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 defence markets with durable
components, assemblies, manufactured units and power units for use
in specialist and harsh environments. The Group's mantra is -
'Trusted technology for demanding environments'. To see an
introductory video on the Group - https://bit.ly/3kzddx7
Operating through two main divisions: Systems (Steatite, Active
Silicon & Custom Power) 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
400 staff across the UK and US, serving specialist markets with
high barriers to entry 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 three acquisitions in the last three years.
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