Solid State sees continued 'strong trading' in H2

Value-added component supplier Solid State said on Tuesday that it had seen "continued strong trading" in the second half of the year, resulting in a performance that it expects will be in line with consensus expectations.

Solid State expects to announce record full-year revenues of approximately £125.0m, up roughly 47% year-on-year, while organic revenue growth on a constant currency basis was expected to be close to 20%.

The AIM-listed group expects to deliver record adjusted pre-tax profits of at least £10.5m, up more than 46% on the prior year, as it said driving and improving adjusted operating margins remained a focus and, despite ongoing supply chain challenges, was expected to be at least maintained or marginally improved at approximately 9%.

Solid State said its strong open order book continued to reflect extended order schedules as clients manage supply chain risks but noted it was still managing its own supply chain through the investment in inventory to support order fulfilment in the first half of 2023-24 and beyond.

Cash generation was also said to have seen a "significant improvement" in the second half, with net debt expected to reduce to about £9.0m from £16.1m on 30 September 2022.

As of 1015 BST, Solid State shares were up 1.37% at 1,112.50p.

Reporting by Iain Gilbert at Sharecast.com