Electronics group to receive confidential payment after Government contract cancelled

WORCESTERSHIRE electronics group Solid State has secured a one-off settlement with the Ministry of Justice (MoJ) following the cancellation of a £34m tagging contract.

The announcement on February 25 wiped 40% off the value of the stock market-listed company in just 10 minutes. It closed that day down 175p at 345p and last night, exactly three months later, was just 8p higher.

Solid State has agreed a confidential settlement which it said will result in its reported pre-tax profits for the year to March 2016 being £4.1m.
It recorded a pre-tax profit of £3.0m in its 2015 financial year

The group’s subsidiary, Steatite, has also been granted a licence to use the Intellectual Property it developed in relation to the MoJ contract.

Gary Marsh, chief executive of Solid State, was happy that a resolution had been arrived at “swiftly”.

He said: “Management can now focus fully on the continued development of the core group and its businesses.

“Solid State has a strong balance sheet to pursue its growth ambitions. The board is confident in the opportunities for the group, both organic and via complementary acquisitions.”