Solid State plc, the Redditch-headquartered AIM-listed manufacturer of computing, power and communications products, and distributor of electronic and optoelectronic components has revealed that it expects the Company’s revenues for the year ending 31 March 2019 are expected to be above current guidance and adjusted profits significantly ahead.
The strong demand seen in the first half of the year within its Value Added Distribution division has continued into the second half. With increased revenues and the impact of operational gearing, the Division is now expected to deliver results well ahead of management’s previous expectations, the company said.
The focus in the company’s manufacturing division has been on improving the quality and mix of sales. The second half has benefitted from the initial shipments of the new power packs for the industrial smart warehousing contract announced in June 2018, and the resolution of a technically challenging specification on a high value-added contract enabling product shipment. The improvement in gross margins seen in the first half has been maintained in to the second half of the year, as a result a significant improvement ahead of management’s expectations in the full year gross margin is now expected.
Last year, the company posted revenue of £46.3 million and adjusted profit of £3.0 million.
Gary Marsh, Chief Executive of Solid State said: “We are delighted with the Group’s strategic progress, delivering significant organic revenue growth within the Value Added Distribution division and increasing the proportion of higher value added projects within the Manufacturing division, which together are driving the improvement in profitability.
“The integration of the Pacer acquisition is progressing well. In addition to current year trading, the order book now gives us confidence in an improved outlook for our financial year ending 31 March 2020.”