£7.3m NATO defence contract snapped up by tech manufacturer
Redditch-based specialist component supplier and manufacturer Solid State has been awarded a £7.3m contract by the NATO Support and Procurement Agency (NSPA) to supply communications equipment to a defence customer.
Delivery of the products is expected within the current financial year, which will contribute towards achieving current market expectations.
Commenting on the contract, Matthew Richards, MD of the Systems division at Solid State, said: “In our AGM statement we referenced the strength of the defence sector, so it is pleasing to be announcing this award with such a significant client. The group has a good reputation in the delivery of high-reliability technology for ruggedised applications so this customer requirement fitted very well.”
Solid State acquired California-based Custom Power in a deal worth £38m in July. Established in 1965, Custom Power offers battery systems and energy solutions across a range of sectors including medical, defence and industry.
Since the acquisition, the demand for Custom Power’s products has continued to be strong with the open order book increasing to £16.8m ($19.5m) at the end of August, which takes the Group open order book to £106.8m (March 2022: £85.5m; likefor-like including Custom Power £98.3m).
Sold State also secured a contract to help deliver a new One Person Operation CCTV system for Transport for London. as part of the Piccadilly Line Upgrade on the London Underground Network. It will allow real-time IP video images of the platform edge to be displayed on in-cab screens for drivers.
The range of acquisitions made and contracts won has meant Solid State reported revenue growth of 30% in the first half of the year.
The firm has brought in £59m in revenue (2021: £39m) and an adjusted profit before tax for the period of £5m (2021: £3.25m) reflecting a 54% year-on-year increase.
