Solid State trades ahead of management expectations

Computing and power products manufacturer Solid State said on Tuesday that trading over the last two months had continued to be ahead of management's expectations.

Solid State said group revenues were stable, down 4% year-on-year, and while order intake in the first quarter was down roughly 15%, by the end of July, order intake for the four-month period had improved and was down about 7% on a like-for-like basis.

The AIM-listed group's open order book was 4% below the year-end at £38.3m as of 31 July, reflecting shorter order periods.

Cash generation remained "solid" with all VAT and PAYE deferrals repaid in the first quarter, with net cash of £3.2m at the end of the period.

Looking forward, while Solid State acknowledged that the short-term macroeconomic outlook remained "uncertain", the group noted it was confident that it could continue to perform "robustly" given its sector diversity and broad customer base.

As of 0900 BST, Solid State shares were up 2.38% at 622.50p.