Solid State PLC Trading Update (9626K)
September 03 2019 - 2:00AM
UK Regulatory
TIDMSOLI
RNS Number : 9626K
Solid State PLC
03 September 2019
Solid State plc
("Solid State", the "Company" or the "Group")
Trading Update
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
positive trading update.
As a result of a strong start to the year, the Board is
confident that profits for the year ending 31 March 2020 will be
significantly ahead of expectations. Revenue for the year is
expected to be in line with current consensus forecasts, albeit the
Directors consider there may be opportunities to generate further
incremental sales later in the year.
Trading in the first four months of the year has been very
strong and is well ahead of budget. Generally, revenues across the
Group have been in line with management's expectations however
there has been an acceleration of certain project work into H1 that
had been expected in H2 which will benefit reported revenue and
profits in H1.
A number of other factors are having a favourable impact on
profits:
-- gross margins are stronger than anticipated as a result of a
favourable sales mix in the Manufacturing division and also
continuing production efficiencies;
-- a general operational gearing benefit arising from increased activity;
-- Pacer, acquired in November 2018, is continuing to perform
strongly and ahead of expectations; and
-- positive exchange rate gains are expected in the first half.
Commenting on the trading update, Gary Marsh, Chief Executive of
Solid State, said:
"The Board is very pleased with the start to the year, and to be
upgrading profit expectations for the year, notwithstanding the
heightened macroeconomic and political uncertainties of recent
months. We look forward to updating further on trading and
prospects in our trading update for the first half which will be
released in late October."
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 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'.
Operating through two main divisions: Manufacturing (Steatite)
and Value Added Distribution (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 niche
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.
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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