Solid State plc, the AIM-listed manufacturer of computing, power and communications products for use in harsh environments, and distributor of electronic components has reported trading ahead of expectations.
Group profit for the financial year ended 31 March 2019 will be slightly ahead of recently upgraded market consensus forecasts which are £3.5 million adjusted profit before tax. The company says this result is particularly pleasing as market forecasts were upgraded twice in the second half of the 2018/19 financial year.
Year-on-year Group revenue is expected to be ahead of expectations at circa £56 million, representing growth of over 20 per cent, and reflecting close to 10 per cent organic growth (excluding Pacer Technologies Ltd which the company bought last November). The Group benefitted from particularly strong distribution sales in Q4.
In its manufacturing division, progress in enhancing operating margins has been maintained and efficiencies in the power business unit are being delivered as a result of the capital investment in plant and equipment.
The integration of Pacer into the Value Added Distribution division is progressing as planned. The new facility in Weymouth began production in March 2019 and this facility, together with the Solid State Supplies Redditch facility, gives the Group class leading operations in electronics distribution.
The Board says it is confident that its long-term strategy will continue to deliver organic growth and that this can be complemented by further targeted acquisitions. 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’s product offering, client base and structure.
Solid State plc will announce its results for the year ended 31 March 2019 on Tuesday 2 July 2019.