Revenues rise at Solid State plc

W Solid State PLC

Solid State plc, the London Stock Exchange, AIM listed manufacturer of computing, power and communications products, and distributor of electronic components, has announced its final results for the year ended 31 March 2019 which marks its best ever performance.

Revenues are up at the Redditch-based business by 22 per cent to £56.3 million.

Tony Frere, Chairman of Solid State said:”The financial year ended 31 March 2019 has seen the Group deliver its best ever performance in terms of both revenue and profit from the core business and make significant progress against its strategic objectives.

“Our strategy is to deliver growth both organically and through acquisition.  These results illustrate our success in both aspects, and our continued commitment to deliver on this strategy and our aspiration to double the size of the business.

“The Group open order book at 31 May 2019 was up 56% on the prior year at £35.9m.  The acquisition of Pacer has been a large contributor, however like for like, the proforma open order book was still up 20%. This gives the Board confidence that the Group remains on track to deliver in-line with our expectations.”

He added: “Current year trading has been ahead of the corresponding period last year, although the order intake during the first quarter of our new financial year has been softer than expected, we believe as a result of the unwind of Brexit stocking. However, as the open order book remains solid this gives the Board confidence that the Group remains on track to deliver in-line with our expectations. The Group open order book at 31 May 2019 was £35.9m (31 May 2018: £23.0m) up 56% on the prior year primarily due to the acquisition of Pacer. The like for like proforma open order book is up 20%.”

Solid State plc is an electronics group supplying industrial and military markets with ruggedised/durable components, assemblies and manufactured units for use in harsh environments.

Operating through two main divisions: Manufacturing (Steatite) and Distribution (Solid State Supplies & Pacer); the Group specialises in complex engineering challenges often requiring design-in support and component sourcing for computing, power, communications, electronic and optoelectronic products.

Solid State employs more than 200 staff across the UK with a branch office in the USA, serving specialist markets in oil & gas production, transportation, medical, construction, security, military and field maintenance.

Solid State was established in 1971 and admitted to AIM in June 1996.  The Group has grown organically and by acquisition – having made 10 acquisitions.

In addition to the acquisition in November 2018 of Pacer Technologies Limited, the holding company for the Pacer Group of companies, its distribution division contributed record organic growth in revenues and profits. This complemented the significant improvements seen in the manufacturing division’s operating margins, which have been delivered by refocusing into three key business units and concentrating on adding value to the products and services offered.

Solid State also added a new facility in Weymouth, facilitating the growth of higher margin products and services and continued investment in medium term research and development to deliver increased services and manufacturing solutions such as battery packs for robotics and new security accredited computing products.