Greater defence spending bolsters revenue for tech manufacturer
Redditch-based Solid State has seen its revenue increase by nearly half in the six months to September, following greater government defence spending thanks to the current geopolitical environment.
Revenue has risen to £88.1m from £59.4m in the previous period for the specialist component supplier and manufacturer, resulting in a strong delivery of orders that weren’t expected to be fulfilled until the second half of the year.
Government security and defence spending have driven results, with its Systems division seeing revenue rise by 136.2% to £56.7m and completing £23.4m of NATO contracts.
Profit before tax has increased by 45% to £6.1m, alongside a reduction in net debt to £3.9m, compared to FY23’s £8.1m.
As of the end of October, a strong order book totalling £108.6m, coupled with a promising prospect pipeline, instils confidence in the directors’ ability to meet full-year expectations.
In terms of commercial and operational achievements, the restructuring of the US components and the integration of Custom Power activities are largely finalised.
Nigel Rogers, chairman of Solid State said: “We continue to work with customers to leverage our specialist design-in capabilities, placing the Group in a strong position, both regionally and globally, in our target growth markets. Solid State remains ambitious with a growth strategy focused on developing Group talent, product innovation and further internationalisation of our operations to deliver on our 2030 goals.
“The performance in the Period reflects a very pleasing out-turn given the broader economic and geopolitical influences.”
