Solid State LON:SOLI, the Redditch-based electronic components distribution and manufacturing company published its final results for the year to the end of March 2024 earlier this week.
As expected, the AIM-listed company had a good year, reporting a 29% increase in revenues to GBP163.3m. Along with the uptick in revenue, Solid State reported a 13.5% increase in operating profit margins of 8.4%, which led to a 45.2% increase in profit before tax to GBP12.2m.
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As previously reported, Peter James, group finance director was confident about Solid State’s progress.
“We have strength in diversity […] we operate in a broad number of markets, and cover this with a number of different products and services to the industry and our diversity has given us resilience.”
Solid State results show profits and dividends up
The company reported an adjusted profit before tax of GBP15.6m, up 44.4% year-on-year and announced a full-year dividend of 21.5p/share up 7.5% y-o-y. Solid State improved its cash position significantly in the year, reporting net cash flow from operating activities up 52.1% to GBP14.3m which saw net debt fall 58% from GBP8.1m in 2023 to GBP4.7m.
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It was a record year for Solid State in terms of revenue and profit, which saw the electronics company upgrade its expectations twice in the year. The AIM-listed company saw like-for-like organic revenue grow in excess of 25% y-o-y.
Solid State operates through two main divisions: its Systems Division, which encompasses the operating companies Steatite, Active Silicon and Custom Power; and its Components Division which includes the operational units Solsta (formerly Solid State Supplies) and Pacer. The company has been in business for 53 years, has been a component of AIM for 27 years and employs around 400 people. Its subsidiary Steatite, which Solid State acquired in 2002, was founded in 1938.
Orderbook back to historic levels
James had previously highlighted that Solid State had been dealing with its clients destocking their inventories post-Covid. But in this week’s results the company said that in the first quarter of the year its order intake had stabilised and its open orderbook levels had returned to historically normal levels. Solid State reported that it had built up a strong orderbook in the last year with open orders of GBP89.2m at the end of May, which was slightly up year-on-year.
Although the company said that industrial demand remained subdued, it has made progress in its design-in activities, whereby Solid State designs components to fit into and do specialist functions on larger pieces of equipment.
The components manufacturer opened trading on 9th July at 1,480p. Over one year the company’s shares are up 13% and over the year-to-date up 4.6%. The company has a market capitalisation of GBP166.6m and its shares have ranged between 1,010p and 1,540p over a 52-week period.
Solid State has delivered a strong set of results, capping-off a record-breaking year with a strong financial performance, exceeding revenue and profit expectations. The company boasts a healthy cash position and a stabilised order book, positioning it well for continued growth despite subdued industrial demand.
