Solid State plc (SOLI) , the AIM listed manufacturer and specialist design-in distributor to the electronics industry, posted stronger revenues and profits for the year in its final results on Tuesday.
Revenues were up 22% to £56.3 million and profits before tax were up 18% to £3.5 million, after it saw a significant increase in sales. The company said that its Value Added Distribution division delivered close to 25% organic growth.
Solid State also saw its gross profit margins increase slightly to 29.1%, up from 27.5%. The company said margins were driven by concentrating on higher “added value” business, re-focusing the manufacturing division and adding a new value added facility in Weymouth.
It also acquired Pacer Group, which it called a “complementary acquisition”, bringing it into opto-electronics market, in November 2018.
Commenting on the results and prospects, Tony Frere, Chairman of Solid State said: "The financial year ended 31 March 2019 has seen the Group deliver its best ever performance in terms of both revenue and profit from the core business”
Shares in Solid State were trading 6.69% lower at 464p after the release of the results
Tony Frere added: "Our strategy is to deliver growth both organically and through acquisition. These results illustrate our success in both aspects, and our continued commitment to deliver on this strategy and our aspiration to double the size of the business.”
He said the company’s open order book at the end of May was up 56% on the prior year at £35.9m and that the acquisition of Pacer was a large contributor. The like for like open order book was up 20%.
Solid State also increased its dividend to 12.5p up from 12p and said it is on track to deliver in-line with expectations.
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