Revenues rise at Redditch manufacturer Solid State

Solid State

Solid State plc, the Redditch-based computing and power products manufacturer, expects to announce revenues for for the six months to 30 September 2021 of around £39 million, up from  £33.1 million over the same period last year, and adjusted profit before tax for the period of approximately £3.25 million reflecting strong underlying trading and the contributions from the Willow and Active Silicon acquisitions made in March 2021, which have exceeded management’s expectations.

Reported revenue growth was slightly reduced as a result of a weaker US dollar, although the profit effect was mitigated by a natural hedge from component purchases also denominated in US dollars, resulting in an enhanced gross margin percentage.

The company says it has benefitted from a good project mix, Group-wide initiatives to develop own brand products, value-added lines of business, and careful cost management, all of which have contributed to improving operating margins in the Period.

Solid State has seen very strong growth in its open order book primarily due to customers placing longer order schedules to help manage and mitigate supply chain challenges, and stronger demand in markets which had previously shown some weakness during the pandemic, specifically the energy and aerospace sectors.

Its open order book on 30 September 2021 stood at a record level of £61.5 million, up from £51 million at 31 May 2021, an increase of 48 per cent on the financial year end.  The lengthening order coverage means that scheduled orders now span three financial years.

The Company is working hard with customers and suppliers to manage supply chain challenges. This has resulted in some stocking at Solid State, requiring investment in working capital, and some commitments to longer order schedules by both Solid State and its customers.

Solid State says it continues to pursue its acquisition strategy, with a healthy acquisition pipeline currently being reviewed.

The Board said it is pleased with progress in the Period and optimistic for the prospects for the year as a whole, however mindful of the broader economic, supply chain and global challenges.