Electronics manufacturer bullish as strong trading continues
Redditch electronics manufacturer Solid State is in bullish mood this morning as it announced that strong trading would result in profits “significantly ahead” of expectations.
The AIM listed manufacturer of computing, power and communications products said trading results for the year ending 31 March 2019 will now “comfortably exceed” current market guidance, with revenues also ahead. Its shares rose 15% in early trading, getting close to a 12-month high.
Solid State said that strong demand seen in the first half within its value added distribution division has continued into the second half.
It said with increased revenues and the impact of operational gearing, the division is now expected to deliver results well ahead of management’s previous expectations.
Gary Marsh, chief executive of Solid State, said: “We are delighted with the group’s strategic progress, delivering significant organic revenue growth within the value added distribution division and increasing the proportion of higher value added projects within the manufacturing division, which together are driving the improvement in profitability.
“The integration of the Pacer acquisition is progressing well. In addition to current year trading, the order book now gives us confidence in an improved outlook for our financial year ending 31 March 2020.”
