Redditch-based Solid State plc, the AIM listed manufacturer of computing, power and communications products distributor of electronic components, has revealed that trading for the first two months of the new financial year has been ahead of management’s expectations, despite the impact of the COVID-19 outbreak.
In a statement, the company said: “We are seeing and expecting some slowdown in order intake but the diversification in our sector and product exposure, and strong open order book, is providing some resilience to the effects of the COVID- 19 outbreak. Understandably, sectors such as the oil & gas market and commercial aviation have been significantly impacted however, others, notably the medical and food retail sectors, have been far more buoyant and are helping to compensate.”
In many instances the Group has found ways to engage with new and existing customers to maintain service levels, despite not being able to travel and attend face to face meetings. This has included securing new clients through an innovative series of virtual ‘hands-on’ design and specification meetings, which would in the normal way have been conducted in person. Greater resources have been committed to web site optimisation and digital marketing to take advantage of this opportunity as all businesses continue to operate under the current restrictions.
All of the Group’s four manufacturing sites remain operational and compliant with government guidelines. At this point, any evidence of pressure on the Group’s supply chain has largely been mitigated by the Group’s buffer stocking policies. The open order book at 31 May 2020 was £37.9 million.
The company admits that the outlook remains difficult to predict, however the Board says it is confident that given its niches in sectors currently in demand and those likely to be in receipt of government stimulus packages, for example transportation and medical, it is well placed to navigate these exceptional trading conditions.
Gary Marsh, Chief Executive, and Peter James, Finance Director, will hold an online presentation to cover the results and prospects at 4.30pm on 30 June 2020.