Revenue growth for Redditch-based computing supplies manufacturer Solid State

Solid State

Redditch-based Solid State PLC, which manufactures and supplies computing, power and communications products, has reported revenue growth of more than 28 per cent to record record revenues of £85 million, up from £66 million the previous year.

The company saw record profitability and a record order book of more than £89 million.

The news comes just two weeks after the company announced it is to buy Custom Power LLC, a battery systems manufacturer based in Los Angeles.

Under the terms of the sale, Solid State has agreed to acquire all of the equity in Custom Power for a maximum price of $45 million (around £37.8 million).

The acquisition will help Solid State expand their power capabilities, particularly in the defence, medical and industrial sectors, which are notoriously difficult to enter.

Worcester’s Solid State to acquire US battery manufacturer for $45m

Gary Marsh, Chief Executive said: “I am very pleased to report 29.1 per cent growth in adjusted diluted earnings per share over the prior year’s record result and a significant step change in revenue year on year at £85 million.

“The Group benefitted from the first full year of the two acquisitions and a few pull-ins of demand at the end of the year where our team’s supplier relationships secured product pre-year end, meaning we were able to fulfil some of the strong customer demand.

“The Group has a record open order book which, combined with our inventory management plan, positions Solid State to proactively manage the well-publicised electronics supply chain issues with our customers. Despite these ongoing challenges, the Group has been able to make considerable strides in delivering its growth strategy in the current year.

“The opportunities for significant growth across both divisions are very exciting and the acquisition of Custom Power is expected to be an important catalyst enabling Solid State to deliver on its five year ambition of matching or exceeding the performance achieved over the preceding five years.”