Solid State Plc · LSE:SOLI
Solid State — Investor Presentation (2023)
36 slides from Solid State's investor presentation, 2023
Slide 1: Investor presentation
SSS Investor \ presentation
Slide 2: Disclaimer
Disclaimer DISCLAIMER This content of information contained in these slides and the accompanying presentation comprises an institutional presentation (the Presentation) which has been prepared by and is the sole responsibility of Solid State plc (the Company). The content of this Presentation has no
Slide 3: Highlights
Highlights In this section Highlights 4-7
Slide 4: Financial Highlights
Highlights FINANCIAL HIGHLIGHTS Revenue (million) Adjusted profit before tax (million) Adjusted fully diluted EPS (pence) 2023 £8.1m2022 Adjusted operating margin (%) £5.2m2021 Return on Capital Employed (%) Net Cash / (Debt) (million) £4.4m2020 £3.2m 04
Slide 5: Financial & Non-Financial Highlights
Highlights FINANCIAL & NON-FINANCIAL HIGHLIGHTS Revenue by division Revenue by Systems business unit Revenue by geography Revenue by markets Components 55% Components & modules 55% UK 57% Industrial 37% Power products 20% Defence & Security 19% Systems 45% ROW 43% Computing products 17% Medical 16%
Slide 6: Our Customers
Highlights OUR CUSTOMERS Jun 2016 06
Slide 7: Investment Case
Highlights INVESTMENT CASE Revenue by division TSR / shareholder return • Solid State PLC – strong growth delivering record financial performance • Delivering on our sustainable growth strategy: • Delivering organic growth <?xml version="1.0" • Complementedencoding="UTF-8"?><svg by strategic M&A id=
Slide 8: Financial Information
Financial Information In this section Financial highlights 9 Organic growth vs Acquisition growth 10 Operating profit bridge 11 Net cash bridge 12 Summarised BS 13 Net asset bridge 14
Slide 9: Key Financial Metrics
Financial KEY FINANCIAL METRICS 31 March 2023 2022 Change Orderbook £120.1m £85.5m 34% Commentary Revenue £126.5m £85.0m 49% • Solid open orderbook Reported operating profit £9.4m £3.7m 154% Adjusted* operating profit % 9.2% 8.7% 50bps • Organic revenue growth ~18%** Adjusted* profit before tax £10.
Slide 10: Organic Growth vs Acquisition Growth
Financial ORGANIC GROWTH VS ACQUISITION GROWTH Revenue 10
Slide 11: Operating Profit Bridge
Financial OPERATING PROFIT BRIDGE Adjusted operating profit 11
Slide 12: Cash Bridge
Financial CASH BRIDGE Cash bridge 12
Slide 13: Summarised Balance Sheet Highlights
Financial SUMMARISED BALANCE SHEET HIGHLIGHTS £m 2023 2022 Change Intangibles 41.6 15.8 163% Commentary PPE and other 4.7 3.4 38% • Non-current assets increase due to Custom Power Total non-current assets 48.6 21.8 123% acquisition Inventory 33.2 17.6 89% • Net trade W/C increase: • Customer purchas
Slide 14: Net Asset Bridge
Financial NET ASSET BRIDGE Net assets 14
Slide 15: Division and market review
Division and market review In this section Group Structure 16 Business model 17 Systems division 18 Components division 19 Key markets 20-21
Slide 16: Our Operating Structure
Division and market review OUR OPERATING STRUCTURE Solid State Plc Systems Components Power Communications Computing Franchise Own Brand Value Added Services Our values lead every aspect of our business operations and decision-making Our vision To be the enabler that allows Employees across offices
Slide 17: A Profitable and Resilient Business Model
Division and market review A PROFITABLE AND RESILIENT BUSINESS MODEL Cross selling and customer referral create Cross selling and Cross selling and repeat revenue streams customer referral customer referral create repeat create repeat revenue streams revenue streams Repeat the design cycle, driving
Slide 18: Systems Division
Division and market review SYSTEMS DIVISION The Systems Division has market leading capabilities in the design, manufacture, supply and through life support of high specification systems. Key highlights • Record order book for FY23 • NATO communications win under framework contract with scope for fo
Slide 19: Components Division
Division and market review COMPONENTS DIVISION The Components Division's business provides products and services in three areas: own brand manufactured components, franchised components, and the provision of value- added services such as programming, firmware control, sourcing and obsolescence manag
Slide 20: Our Offering in Our Key Markets
Division and market review OUR OFFERING IN OUR KEY MARKETS How we differentiate How we serve our customer • Specialist industry and market knowledge • Long-standing customer relationships • Technical product expertise • Solve technology challenges • Strong supply chain relationships • Turning ideas
Slide 21: Key Markets Providing Growth Opportunities
Division and market review KEY MARKETS PROVIDING GROWTH OPPORTUNITIES Unmanned Aerial Vehicles EV and EV infrastructure \\\\\\\\\\\\\\\\\\\\ Key highlights Key highlights • Differentiated battery technology • Broad portfolio of components for EV infrastructure • Leading communications and datalink s
Slide 22: Strategy review
Strategy review In this section ESG progress 23 Strategy achievements 24 M&A activity & Strategy 25 Custom Power review 26
Slide 23: ESG Progress
Strategy review ESG PROGRESS Our focus on ESG is a core part of our strategy and is integrated in all areas of our business. Supporting local Health & Safety Our People Economic growth Sustainable Sustainable Climate change communities innovative sourcing & products products • Supporting local • Acc
Slide 24: Strategic Achievements
Strategy review STRATEGIC ACHIEVEMENTS Our key strategic pillars: Investment and Broaden complementary Internationalise Develop our “own brand” 1 development of talent 2 products/technology 3 the Group 4 product portfolio profile • Development and additions to • Organic development of the • Establis
Slide 25: M&A Activity & Strategy
Strategy review M&A ACTIVITY & STRATEGY Our key strategic pillars: Why & how we do M&A: • Capital allocation decision between organic investment vs M&A investment • Delivering on the strategy minimising risk • Lower risk approach through M&A rather than organic penetration into a market Investment a
Slide 26: Custom Power Review
Strategy review CUSTOM POWER REVIEW In August 2022, Solid State plc successfully acquired Custom Power based in Southern California. Strategy Custom Power Alignment Five key synergies: Investment & development of 1 4 Strong engineering team talent Geographical Customers With access to North America
Slide 27: Prospects and outlook
Prospects and outlook
Slide 28: Prospects & Outlook
Prospects and outlook Prospects & Outlook Prospects & Outlook: • Very strong start to FY24/25 with a record Q1 • Benefit of Operational gearing • Consensus upgraded - YoY growth in; Revenue >15% & Adj. PBT c.10% • Strong growth in the target markets as orderbook begins to normalise • Active M&A pipe
Slide 29: Appendices
Appendices In this section Executive Team 30 Group timeline 31 Adjustments 32 Reconciliation 33 Key shareholders 34 Director Holdings 35
Slide 30: Executive Team
EXECUTIVE Appendices TEAM Gary Marsh Peter James Matthew Richards John Macmichael Chief Executive Officer Chief Financial Officer Systems Division Managing Director Components Division Managing Director 30
Slide 31: Group History and Strategic Acquisitions Completed
Appendices GROUP HISTORY AND STRATEGIC ACQUISITIONS COMPLETED 31
Slide 32: Alternative Performance Measures – Adjustments
Appendices ALTERNATIVE PERFORMANCE MEASURES – ADJUSTMENTS 2023 2022 Acquisition fair value adj CoS £0.1m £0.2m Commentary Adjustments to CoS £0.1m £0.2m Acquisition fair value adj, re-organisation and • Deal related items relate to £0.3m £0.5m • Custom Power deal costs • Active Silicon Change in con
Slide 33: Alternative Performance Measures – Reconciliation
Appendices ALTERNATIVE PERFORMANCE MEASURES – RECONCILIATION 2023 2022 Revenue £126.5m £85.0m Commentary • Adjusted operating margin 9.2% (2022: 8.7%) Operating profit £9.4m £3.7m Adjustments £2.2m £3.7m • Reported operating margin 7.4% (2022: 4.4%) Adjusted operating profit £11.6m £7.4m Profit befo
Slide 34: Key Shareholders and Directors' Holdings
Appendices KEY SHAREHOLDERS AND DIRECTORS' HOLDINGS Commentary % Holding • Founders Comben & Marsh family Charles Stanley & Co 10.97% • Directors' holdings total 4.5% (see overleaf) BGF Investment Management Limited 10.42% Schroders plc 7.99% Mr & Mrs Gordon Comben 7.98% Canaccord Genuity Group Inc
Slide 35: Directors' Holdings and Interests in Shares
Appendices DIRECTORS' HOLDINGS AND INTERESTS IN SHARES Vested but Total Interest % of Issued % of Issued % of Issued unexercised in Shares of Shareholding Share Capital Share Capital Share Capital share options the Company Nigel Rogers 6,351 0.06% - - 6,351 0.06% Gary Marsh 288,676 2.55% 8,000 0.07%
Slide 36: www.solidstateplc.com
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