Electronics group Solid State sees big rise in turnover and profits

WORCESTERSHIRE electronics group, Solid State, has seen a big rise in annual turnover and profits following strong demand for its products both at home and abroad.

The AIM-listed group, which supplies specialist industrial/ruggedised computers, electronic components, secure communications systems and battery power solutions to the electronics market, saw turnover grow 14% to £36.56m (2014: £32.09m), with pre-tax profit up 40% to £3.01m (2014: £2.15m).

Earnings per share were up 38% to 34.9p (2014: 25.3p) and the company is recommending a 41% increase in dividend to 12p (2014: 8.5p).

Tony Frere, chairman of Solid State, said: “This is another very pleasing set of results for a year that represents a real step change in the business.

“Solid State has made a pleasing start to the new financial year with our order book remaining strong and a backlog of £19.38m as at May 31, 2015 (May 31, 2014: £15.11m).

“Over the last 13 years we have successfully acquired and integrated eight businesses. We continue to see potential acquisition opportunities, with a number of them being as a direct result of the improving economic climate. We will pursue this acquisitive growth strategy while at the same time seeking to enhance organic growth through developing our export prospects and other product innovation initiatives.”

The growth is revenues came despite exiting approximately £2m of very low margin business in the year to March 31, 2015 which was inherited from the acquisition of 2001 Electronic Components in December 2013.  
 
The group revenue divisional breakdown was represented by a contribution of £22.75m (62%) from the manufacturing division (Steatite £19.74m and Q-Par £3.01m); with the distribution division under Solid State Supplies contributing £13.81m (38%).

A growth in export sales was aided largely by a new range of communications systems enhanced by Steatite which have unique features for the markets they serve.   
 
“The combination of new product development and new market penetration has delivered healthy organic growth, principally through cross selling initiatives and the application of innovative processes that save our clients time and money,” it said.  
 
Headquartered in Redditch, Solid State employs over 150 staff across five sites.  The group operates through two main divisions: Solid State Supplies and Steatite.