Solid State trades ahead of expectations despite Covid-19 impacts

Electronics group Solid State said on Monday that trading had been ahead of management's expectations since its April update, despite the impact of the Covid-19 pandemic.

Solid State said it had seen and expected "some slowdown in order intake" in the first two months of its new trading year but noted that the diversification in its sector and product exposure, as well as a "strong" open order book, had provided the group with resilience to the effects of the outbreak.

The AIM-listed group stated clients in sectors such as the oil and gas market and commercial aviation had been "significantly impacted"; however, others, notably the medical and food retail sectors, had been "far more buoyant" and were helping to offset the hits taken elsewhere.

All four of Solid State's manufacturing sites remained operational and compliant with government guidelines as it worked on its open order book of £37.9m as of 31 May.

Solid State, which also highlighted that it had remained cash generative throughout the outbreak, said any evidence of pressure on its supply chain had largely been mitigated by its buffer stocking policies.

"The outlook remains difficult to predict however the board 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," concluded the group.

As of 1010 BST, Solid State shares had surged 7.55% to 591.50p.