Solid State plc, the Redditch-based London Stock Exchange AIM listed manufacturer of computing, power and communications products, and distributor of electronic components, has announced that a strong start to the year should deliver profits for the year ending 31 March 2020 significantly ahead of expectations.
Trading in the first four months of the year has been very strong says the company, 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 the first half of the year that had been expected in the second half which will benefit reported revenue and profits.
A number of other factors are having a favourable impact on profits. These include stronger gross margins than anticipated as a result of a favourable sales mix in the manufacturing division and continuing production efficiencies arising from increased activity.
The company has also benefitted form the acquisition of Pacer Technologies in 2018, which is continuing to perform strongly and ahead of expectations.
Positive exchange rate gains are also expected in the first half.
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.”