$25m defence order lifts Solid State after profit warning
Solid State has secured a $25m delayed order for communications equipment under a defence programme, to be delivered in the next financial year.
The delay was in connection with the completion of the UK Government’s strategic defence review this spring, but the order has now been approved by exception.
Given recent geo-political developments, and in light of the order, Solid State said it intends to increase investment in its production capabilities in both the USA and the UK to accelerate medium-term organic growth opportunities within the defence and security sector.
Gary Marsh, Chief Executive Officer of Solid State said: “At the time we announced the delay in the original order in November 2024, due to the pause in defence expenditure resulting from the Strategic Defence Review, we were confident that the disruption would be temporary.
“Despite the ongoing nature of the Strategic Defence Review, which is not expected to conclude for some months, this order has been approved for a largely comparable equipment list to the original postponed order. This confirms the strategic need for Solid State’s technology, which is likely to heighten given global security concerns and Europe’s further commitment to strengthen its defence capability.
“We welcome this large order which improves our earnings prospects for FY25/26 and will enable us to increase investment and support organic growth across the business. The Company expects to announce a trading update in relation to the current financial year in April 2025 and remains confident in achieving market expectations for FY24/25.”
