Technology group expects annual profits to be ‘significantly ahead’

Technology group Solid State says it expects annual profits to be “significantly ahead” of expectations after a positive year.

The Redditch-based company said that as a result of a strong start to the year, the board is confident that profits for the year ending 31 March 2020 will be strong.

It said revenue for the year is expected to be in line with current consensus forecasts, while the directors consider there may be opportunities to generate further incremental sales later in the year.

The company said: “Trading in the first four months of the year has been very strong and is well ahead of budget. Generally, revenues across the group have been in line with management’s expectations however there has been an acceleration of certain project work into H1 that had been expected in H2 which will benefit reported revenue and profits in H1.”

Solid State said a number of other factors are having a favourable impact on profits, including gross margins being stronger than anticipated as a result of a favourable sales mix in the manufacturing division and also continuing production efficiencies; while Pacer, which it acquired in November 2018, is continuing to perform strongly and ahead of expectations.

Gary Marsh, chief executive of Solid State, said: “The board is very pleased with the start to the year, and to be upgrading profit expectations for the year, notwithstanding the heightened macroeconomic and political uncertainties of recent months.

“We look forward to updating further on trading and prospects in our trading update for the first half which will be released in late October.”