TIDMSOLI
RNS Number : 2356W
Solid State PLC
22 April 2021
Solid State plc
( "Solid State", the " Group " or the "Company" )
Trading Update
Solid State plc (AIM: SOLI), the specialist value added
component supplier and design-in manufacturer of computing, power,
and communications products, announces a trading update for the 12
months ended 31 March 2021.
The Group is pleased to report that it expects to announce
results ahead of the recently upgraded consensus forecasts. The
final month of the financial year benefitted from demand pulled
forward and a strong contribution from the two businesses acquired
at the end of February. Trading since the update announced on 22
February 2021 has continued to be encouraging, with stable order
flow and strong invoiced sales in the month of March, driven in
part by certain component shortages and customer stocking to
mitigate supply chain risks.
Demand across the Group has generally been strong with gross
margins holding up, albeit shortened customer order schedules and
reduced visibility remains. Foreign exchange headwinds continue,
however these are frequently mitigated by the natural currency
hedge achieved by invoicing in the same currency as the supply
chain cost, and freight costs are running at a premium to the
historical average.
The acquisitions of the Active Silicon and Willow Technologies
Groups have integrated well so far, with trading in the first
months of ownership having been at the run-rate expected by
management. The commercial synergies between the acquisitions and
Solid State are increasingly being realised, with exciting
prospects being advanced.
The Group continues its programme of investment in engineering
capability and improvement in production efficiency to enhance the
development of services to customers, own brand products and margin
opportunities.
At 31 March 2021 the Group had net cash (excluding deferred and
contingent considerations and IFRS16 lease obligations) of
approximately GBP 3.1m.
The open order book on 31 March 2021 was GBP41.3m, which
includes the open order books from the recent acquisitions. On a
like for like basis, the order book on 31 March 2021 was GBP33.7m
(31 March 2020: GBP39.9m) reflecting a continuation of shortened
customer order cycles due to limited visibility in clients' own
markets. This is illustrated by the open orders due for delivery in
the first quarter of the year (April - June) which, despite the
accelerated shipments to customers in March, closed the year up 10%
on the 0-3 month open order low point of May 2020 .
Market conditions across the electronics industry are expected
to be impacted by supply chain challenges and component shortages
for several months, and customers have been encouraged to pay
increased attention to forecasting and adequacy of forward order
cover. The Board is pleased to report that we have seen
particularly strong order intake post year end to start FY21/22,
building confidence in the outlook for the current year.
Commenting on trading and prospects, Gary Marsh, Chief Executive
at Solid State said:
"The outcome for the full year represents an excellent
achievement for the Group, given that notwithstanding the
disruptions of COVID and the Brexit uncertainty, the performance
exceeded the prior year, which was itself a record year.
"Despite the residual market uncertainty and ongoing related
supply chain constraints, the organic growth opportunities in our
target structural growth markets provide an encouraging foundation
for the future growth prospects of the Group."
Certain information contained in this announcement would have
constituted inside information (as defined by Article 7 of
Regulation (EU) No 596/2014) ("MAR") prior to its release as part
of this announcement and is disclosed in accordance with the
Company's obligations under Article 17 of MAR.
For further information please contact:
Solid State plc Via Walbrook
Gary Marsh - Chief Executive
Peter James - Group Finance Director
WH Ireland (Nominated Adviser & Joint
Broker) 0207 220 1666
Mike Coe / Chris Savidge (Corporate
Finance)
Jasper Berry / David Kilbourn (Corporate
Broking / Sales)
finnCap (Joint Broker)
Ed Frisby (Corporate Finance)
Rhys Williams / Tim Redfern (Sales
/ ECM) 020 7220 0500
Walbrook PR (Financial PR) 020 7933 8780
Tom Cooper / Nick Rome / Nicholas
Johnson 0797 122 1972
solidstate@walbrookpr.com
Analyst Research Reports: For further analyst information and
research see the Solid State plc website:
https://solidstateplc.com/research/
Notes to Editors:
Solid State plc (SOLI) is a value added electronics group
supplying commercial, industrial and military markets with durable
components, assemblies and manufactured units for use in specialist
and harsh environments. The Group' s mantra is - 'Trusted
technology for demanding applications'. To see an introductory
video on the Group - https://bit.ly/3kzddx7
Operating through two main divisions: Manufacturing (Steatite
& Active Silicon) and Value Added Supplies (Solid State
Supplies, Pacer, Willow Technologies & AEC); the Group
specialises in complex engineering challenges often requiring
design-in support and component sourcing for computing, power,
communications, electronic, electro-mechanical and opto-electronic
products.
Headquartered in Redditch, UK, Solid State employs approximately
300 staff across UK and US, serving specialist markets in energy
production, transportation, medical, construction, security,
military and field maintenance.
Solid State was established in 1971 and admitted to AIM in June
1996. The Group has grown organically and by acquisition - having
made 12 acquisitions since 2002.
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END
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April 22, 2021 02:00 ET (06:00 GMT)
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