Technology group’s record performance continues

Technology group Solid State was in bullish mood this morning as it said the record trading performance achieved last financial year has continued in the first half of this year.

Updating the markets on its performance for the six months to the end of September, the Redditch electronics manufacturer said it is on track to deliver the recently upgraded full year earnings in line with the board’s expectations.

Group sales for the first half are expected to show organic growth of circa 7.5% on a proforma basis, giving revenue in excess of £33m, despite the heightened macroeconomic and political uncertainties of recent months.

Solid State’s performance was boosted by its acquisition of Pacer Group in November 2018, taking the group into the complementary opto-electronics market.

The company said: “As a consequence of favourable operational gearing, revenue growth and gross margin improvement, adjusted PBT for the period is expected to be approximately £2.5m.

“The board is particularly pleased with the cash generation in the first half. This has enabled the continued early repayment of the Pacer acquisition loans and resulted in a return to a net cash position of circa £0.25m at 30 September 2019.”

The open order book at 30 September 2019 stood at £36.5m, at the comparative point of 30 September 2018, the open order book stood at £36.2m on a proforma basis.

In July, the company said it is aiming to double the size of the business through organic growth and acquisitions.

Solid State employs over 200 staff across the UK with a branch office in the USA, serving specialist markets in oil & gas production, transportation, medical, construction, security, military and field maintenance.

Solid State was established in 1971 and admitted to AIM in June 1996.