Solid State FY performance seen 'materially below' current expectations

Electronics group Solid State warned on Friday that payments linked to a UK government defence contract had been paused, pending the completion of a strategic defence review next summer.

Solid State said it was confident that this was only a temporary delay and that expected orders would still be received in due course. However, the group noted that they will now fall outside of the current financial period.

As a result, the AIM-listed company said its performance for FY24/25 will now be "materially below current consensus expectations". It also said the timing of the strategic defence review meant it remains uncertain whether these delays will also affect orders and deliveries originally expected in FY25/26.

Chief executive Gary Marsh said: "While the current delays in receiving orders are frustrating, our relationships with the Forces and key defence prime contractors underpins our confidence in the Group's position within this sector. The Board remains optimistic about the medium and long-term outlook for defence spending given the current geopolitical climate."

As of 0935 GMT, Solid State shares had sunk 34.12% to 140.0p.

Reporting by Iain Gilbert at Sharecast.com