Solid State H1 revenues flat as Covid-19 delays stall growth

Computing and power products manufacturer Solid State said on Tuesday that both interim revenues and pre-tax profits were expected to be broadly flat year-on-year.

Solid State stated that despite the impacts of Covid-19 in the year-to-date, revenue was expected to be approximately £33.0m, down slightly from the £33.6m reported in the first half of 2019, while adjusted profit before tax was pegged to be roughly £2.50m, a slight reduction on the £2.67m recorded at the same time a twelve months earlier.

The AIM-listed group added that its open order book as of 30 September was £34.3m, down from £36.5m in the prior year, of which approximately £23.7m was expected to be shipped in the current financial year.

"The order book reflects some delays in order intake and a shortening of client order scheduling in response to Covid-19 uncertainties," said Solid State.

However, the group added that demand from sectors such as medical and security and defence had been "robust" during the first half.

"While the outlook remains opaque, the board currently anticipates an outcome to the 2020/21 financial year similar to the prior year," said the group.

As of 1335 BST, Solid State shares had slumped 9.44% to 566.0p.