Solid State plc (AIM: SOLI), the AIM listed manufacturer of computing, power and communications products, and value added distributor of electronic components, is pleased to announce its Final Results for the year ended 31 March 2019.
Highlights in the period include:
Financial:
2019 | 2018 | Change** | |
Revenue | £56.3m | £46.3m | +22% |
Adjusted profit before tax* | £3.5m | £3.0m | +18% |
Reported profit after tax | £2.7m | £2.2m | +19% |
Adjusted diluted earnings per share | 35.9p | 30.9p | +16% |
Gross profit margin | 29.1% | 27.5% | +154bps |
Adjusted operating margin | 6.5% | 6.6% | -7bps |
Dividends | 12.5p | 12p | +4% |
*Profit before tax adjusted for acquisition and re-organisation costs, amortisation of acquisition intangibles, share based payments, non-recurring tax credits and the associated tax effect of the other adjustments.
** Calculated based on the reported figures in £’000 in the primary statements rather than the figures in £’m.
Operational:
- Acquisition of Pacer Group, taking the Group into the complementary opto-electronics market;
- Delivered significant increase in sales, with the Value Added Distribution (‘VAD’) division delivering close to 25% organic growth;
- Re-focusing the Manufacturing division, to concentrate on higher ‘added value’ business, which has translated into a richer mix of business with better gross margins;
- New value added facility in Weymouth, facilitating the growth of higher margin products and services; and,
- Continued investment in medium term research and development to deliver increased higher margin services and manufacturing solutions such as battery packs for robotics and new security accredited computing products.
Post period end:
- Extension of Microchip franchise; and,
- Appointment of Nigel Rogers as independent Non-Executive Director.
Commenting on the results and prospects, Tony Frere, Chairman of Solid State said:
“The financial year ended 31 March 2019 has seen the Group deliver its best ever performance in terms of both revenue and profit from the core business and make significant progress against its strategic objectives.
“Our strategy is to deliver growth both organically and through acquisition. These results illustrate our success in both aspects, and our continued commitment to deliver on this strategy and our aspiration to double the size of the business.
“The Group open order book at 31 May 2019 was up 56% on the prior year at £35.9m. The acquisition of Pacer has been a large contributor, however like for like, the proforma open order book was still up 20%. This gives the Board confidence that the Group remains on track to deliver in-line with our expectations.“
Capital Markets Lunch:
A presentation of the results and an update on prospects will be held on Monday 8 July 2019 in the City. Those keen to attend should contact Tom Cooper on tom.cooper@walbrookpr.com or 0797 122 1972.
Investor Site Visits:
Solid State conducts site visits for investors at its Redditch head office where operations for both the value added distribution and manufacturing operations can be seen. Those interested in attending should contact Tom Cooper on tom.cooper@walbrookpr.com or 0797 122 1972.
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