Tagging group seeks to rebuild confidence after lost Government contract

SOLID STATE has said its core businesses will shortly announce results in line with expectations as the group seeks to rebuild confidence after the loss of a major Government contract.

In February the Ministry of Justice (MoJ) decided to terminate a £34m tagging project, which caused the group’s share price to plunge 42% in 10 minutes. Solid State has said negotiations in relation to the settlement of the terminated contract with the MoJ are now “at an advanced stage”.

The AIM-listed supplier of electronic systems and hardware has told the stock market it has entered its new financial year with healthy order books.

The group order backlog, including recent acquisition Ginsbury, stood at £15.34m at March 31.

Solid State’s share price has remained stable since the market adjustment following the MoJ’s announcement. It closed at 345p on February 25, and closed last night at 339p.