Business
Trading Update, Notice of Results & Investor Pres
Trading Update, Notice of Results & Investor Pres.
About this update from Solid State Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 7365P\n Solid State PLC\n 21 October 2021\n \n \n \n \n \n Solid State plc\n \n \n (\n \"Solid State\", the \"\n Group\n \" or the \"Company\"\n )\n \n \n Trading Update, Notice of Results, Analyst Briefing\n \n \n & Investor Presentation\n \n \n \n \n \n Solid State plc (AIM: SOLI), the specialist value added component supplier and design-in manufacturer of computing, power, and communications products, announces a trading update for the six months to 30 September 2021 (\"the Period\").\n \n \n Trading Update:\n \n \n Solid State expects to announce revenues for the Period of approximately £39.0m (2020: £33.1m) and adjusted profit before tax for the Period of approximately £3.25m (2020: £2.55m), reflecting strong underlying trading and the contributions from the Willow and Active Silicon acquisitions made in March 2021, which have exceeded management's expectations. The Board is confident that the Company will meet adjusted profit before tax consensus expectations for the year. There is potential upside in the second half of the year, delivery of which is dependent upon careful management of the constraints imposed by supply chain challenges.\n \n \n Reported revenue growth was slightly reduced as a result of a weaker US dollar, although the profit effect was mitigated by a natural hedge from component purchases also denominated in US dollars, resulting in an enhanced gross margin percentage. The Company has benefitted from a good project mix, Group-wide initiatives to develop own brand products, value-added lines of business, and careful cost management, all of which have contributed to improving operating margins in the Period.\n \n \n The Group has seen very strong growth in its open order book primarily due to customers placing longer order schedules to help manage and mitigate supply chain challenges, and stronger demand in markets which had previously shown some weakness during the Pandemic, specifically the energy and aerospace sectors. The open order book on 30 September 2021 stood at a record level of £61.5m (31 May 2021: £51.0m), an increase of 48% on the financial year end (31 March 2021: £41.5m). The lengthening order coverage means that scheduled orders now span three financial years; FY22 (63%), FY23 (32%) and into FY24 (5%).\n \n \n The Company is w...