Solid State on course to beat expectations amid 'record' order book

For the six month period ended 30 September, the company’s revenue increased by 4% to £23.5m compared to the same period last year as the value added distribution and manufacturing divisions enjoyed good trading.

Value added distribution had a particularly strong showing, benefiting from a one-off client order of approximately £1m and delivering revenue and margin growth and representing more than half of first half revenue.

Meanwhile, the manufacturing division saw an improvement in the gross margin percentage due to the sales product mix in the period.

In the second half of the year, the division’s revenue is expected to improve and return to making up more than half of Solid State’s revenue due to a strong open order book in the Power business unit.

The AIM traded company is a specialist in the manufacture of ruggedised computing, battery power solutions, communications including antennas and secure radio systems, electronic components and displays.

“Entering the second half, the board considers prospects for the year to be positive and expects the group to exceed market expectations for the current financial year. The group continues to pursue margin enhancement initiatives across both divisions and to progress its acquisition strategy, where the directors continue to review an active acquisition pipeline,” said a statement from Solid State.

The company’s order book at the end of the period stood at £29.6m, setting a new record for the group and constituting a 64% increase compared to the same point last year, with £18.1m set for delivery in the remainder of the financial year.

Solid State’s shares were up 11.23% at 317.00p at 1128 BST.