Redditch-based computing and power products manufacturer Solid State plc has reported robust trading in its latest trading update for the year ending 31 March 2021.
Revenues are expected to be broadly in line with, and profits expected to be ahead of, consensus forecasts, the company said. The revenue mix has remained strong with demand for higher value-added products, services and solutions maintaining margins. The strengthening pound has resulted in currency headwinds at a revenue level, albeit the Group’s natural hedge mitigates the impact on profits.
The business has taken steps to manage the effects of extending delivery times on semiconductor components on both Solid State and its customers through increasing stock levels, but it has warned that the global shortage of semiconductors could cause programme delays in the financial year 2022, albeit the Board currently expects trading activity to be comparable with this financial year.
This year’s performance, notwithstanding the challenges of COVID-19 and Brexit, exceeds the prior year profitability.
Gary Marsh, Chief Executive of Solid State, said: “We are very happy with the performance of the business this year. To be upgrading profit expectations ahead of last year, which was itself a record performance, given the challenges all businesses have faced, is testament to the hard work and commitment of the whole team and demonstrates the resilience of the business.”