Technology group outperforms twice-upgraded profit forecast

Rugged technology group Solid State has outperformed the profit forecasts expected by the market even though they were upgraded twice in the second half of the year.

The Redditch electronics manufacturer has enjoyed a very positive 12 months, with its share price almost doubling since last April.

Today’s update to the stock market that its adjusted pre-tax profits will exceed £3.5m is likely to fuel a further rise.

Solid State’s revenues for the year to March are expected to be ahead of expectations at around £56m. This would show 20% growth, of which around half is from the acquisition in November of Pacer Technologies.

Its strong performance has enabled the business to make an early repayment of £2.0m of the term loan taken out to fund the Pacer deal.

Solid State expects that it can continue its growth trajectory as it eyes another acquisition.

It said: “The board is confident that its long-term strategy will continue to deliver organic growth and that this can be complemented by further targeted acquisitions.

“The success of the organic growth strategy is now in evidence and the board also continues to actively engage with potential acquisition targets that offer a complementary fit to the group’s product offering, client base and structure.”