Solid State Plc · LSE:SOLI
Solid State — H1 FY2022/23 Earnings Presentation
16 slides from Solid State's earnings presentation, December 2022
Slide 1: Interim Results to 30 September 2022
SOLID STATE PLC PRESENTS: PRESENTED BY: Interim Results to 30 September 2022 Gary Marsh Solid State PLC Investor Presentation Peter James Matthew Richards
Slide 2: Strategic progress continues post period end
Strategic progress continues post period end Positive momentum - Record first half ➢ Record H1 revenue up 51% at £59.4m ➢ Record H1 adj EPS up 39% at 45.3p ➢ Record order book to Nov 22 - £117.8m (Mar 22 – £85.5m) Solid State PLC Investor Presentation Foundation for continued growth ➢ Custom Power a
Slide 3: Group structure - Custom Power now forms part of the Power BU
Group structure - Custom Power now forms part of the Power BU Presentation Solid State PLC Investor Presentation 3
Slide 4: Revenue growth benefits, GM% depressed by USD tailwinds
Revenue growth benefits, GM% depressed by USD tailwinds Solid State PLC Investor Presentation 4
Slide 5: Operating margin improvements continue at 9.3%
Operating margin improvements continue at 9.3% up 70 Bps H1 H1 FY Change 2022/23 2021/22 2021/22 ➢ Organic constant currency Revenue £59.36m £39.38m 51% £85.00m revenue growth 31% Gross profit £18.77m £12.89m 46% £27.53m Gross profit margin 31.6% 32.7% (110Bps) 32.4% Adjusted Operating profit* £5.52
Slide 6: H1 FD adj EPS of 45.3p, FY22/23 consensus 79.9p
H1 FD adj EPS of 45.3p, FY22/23 consensus 79.9p up 13% on FY22 Solid State PLC Investor Presentation 6 6
Slide 7: Provisional Custom Power acquisition accounting materially changes B/S
Provisional Custom Power acq’n accounting materially changes B/S H1 H1 FY 2022/23 2021/22 2021/22 ➢ Acquisition accounting impacts ➢ Recognised acquired working capital Goodwill £34.55m £9.90m £9.90m Deferred tax asset £3.14m - £0.54m ➢ Recognised fair value of PPE & IFRS 3 Intangibles £12.65m £6.13
Slide 8: Working capital increased as we manage growth and supply chain
Working capital increased as we manage growth and supply chain H1 H1 FY 2022/23 2021/22 2021/22 ➢ Working capital investment ➢ Underlying inventory up ~£3.4m Goodwill £34.55m £9.90m £9.90m Deferred tax asset £3.14m - £0.54m ➢ Underlying receivables up ~£2.7m Intangibles £12.65m £6.13m £5.93m Propert
Slide 9: Strong cash profits invested in working capital to secure growth
Strong cash profits invested in working capital to secure growth H1 H1 FY Change 2022/23 2021/22 2021/22 ➢ Strong cash profits invested: Adjusted operating profit* £5.52m £3.37m - 5% £7.40m Underlying cash conversion rate 147% 148% 81% ➢ £3.4m in inventory Underlying operating cash generation £0.58m
Slide 10: Progressive dividend policy maintained, interim dividend up 4%
Progressive dividend policy maintained, interim dividend up 4% Solid State PLC Investor Presentation 10 10
Slide 11: Solid State PLC - Investment proposition
Solid State PLC - Investment proposition Solid State PLC – ambition for the next 5 years is to replicate or beat historic performance ➢ Solid State PLC – strong growth delivering record financial performance ➢ The 5 year strategy delivered growth through: ➢ investment in organic growth Solid State P
Slide 12: Key to accelerating our growth strategy for a sustainable future
Key to accelerating our growth strategy for a sustainable future Broaden Investment & complementary development product/technology of talent profile Presentation Solid State PLC Investor Presentation Develop our “own brand” Internationalise product portfolio the Group 12
Slide 13: A profitable and resilient business model
Solid State PLC a profitable and resilient business model Solid State PLC – supplying specialist engineered systems and value added components Solid State PLC Investor Presentation 13
Slide 14: Continued investment in technology and capabilities
Continued investment in technology and capabilities Solid State PLC Investor Presentation 14
Slide 15: Custom Power - Good progress on integration in first four months
Custom Power – Good progress on integration in first four months Exciting prospects for FY2023/24 and beyond ➢ Technical collaboration: Provides a step change in BMS, pack heating and packaging capabilities ➢ Team work: The early collaboration and engagement of Custom Power with our existing team ha
Slide 16: Prospects for 2022/23 and beyond
Prospects for 2022/23 and beyond Opportunities and prospects ➢ Resilient growth markets: High barrier to entry markets: security, defence, medical & transport ➢ Advanced technology: Adoption of Industrial AI & 5G – Power control / switching - targeting Net Zero ➢ Order book: Record order book Sept 2