Solid State boasts 61% profit growth during the first half

AIM listed manufacturer of computing, power and communications products, and value added distributor of electronic components, Solid State plc (LON: SOLI) boasted significant progress in its fundamentals during the six month period ended 30 September.

The Group’s revenue for the period was £33.6 million, up 43% on a reported and 11% on a proforma basis in a year-on-year comparison.

This led a 140bps bounce in the Company’s reported operating profit margin, which was up to 7.1%, alongside a staggering 61% hike in adjusted profit before tax, which shot up to £2.67 million.

Solid State shareholders fared similarly well, with the Group’s interim dividend rising 25% on-year to 5.25p per share, and their adjusted diluted EPS spiking 64% to 27.8p.

The Group went on to laud its ‘significant contract wins’ for an order book of £37.8 million as Halloween came around, up 5.3% on-year.

It also added that it had and would continue to benefit from securing an enlarged Microchip franchise, investing in its Weymouth facility and investment in Business Development resources.

Elsewhere in the tech sector, IMImobile PLC (LON: IMO) posted strong half-year results, Wirecard AG (ETR:WDI) secured a partnership with Yeepay, AdEPT Technology Group PLC (LON: ADT) revenues bounced and Infineon Technologies AG (ETR: IFX) enjoyed financial progress.

Solid State comments

Adding insight on the Company’s results and prospects, Tony Frere, Chairman, said,

“I am very pleased to present a strong set of results which will be my last as Chairman of Solid State. In the five years of leading the Board we have worked very hard to build a resilient business with key points of difference in its industry. These record results vindicate our strategy and ensure a strong platform for future growth.”

Investor notes

Following the announcement, the Company’s shares rallied 9.11% or 43.00p to 515.00p per share 03/12/19. Analysts from finnCap reiterated their ‘Corporate’ stance on Solid State stock. The Group’s p/e ratio is 12.90, their dividend yield stands at 2.43%.

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Jamie Gordon
Senior Journalist at the UK Investor Magazine. Also a contributing writer at the Investment Observer, UK Property Journal and UK Startup Magazine. Postgraduate of King's College London with a specialisation in Business Ethics. Interested in Development Economics and David Hume.