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 Interim Results for the six months ended 30 September 2019.
Highlights in the period include:
H1 2019/20 | H1 2018/19 | Change | |
Reported revenue | £33.6m | £23.5m | +43% |
Proforma revenue* | £33.6m | £30.3m | +11% |
Reported operating profit margin (note 5) | 7.1% | 5.7% | +140bps |
Adjusted profit before tax (note 5) | £2.67m | £1.66m | +61% |
Proforma adjusted profit before tax** | £2.67m | £1.67m | +60% |
Adjusted diluted earnings per share (note 6) | 27.8p | 16.9p | +64% |
Interim dividend | 5.25p | 4.20p | +25% |
*Proforma 2018 restates the prior year on a like for like basis to include the £7.7m Pacer revenue for H1 2018/19 and excludes £1.0m non recurring electronics revenue as reported in prior year.
** Proforma 2018 restates the prior year on a like for like basis to include the £0.26m Pacer EBIT for H1 2018/19 and excludes £0.25m non recurring electronics EBIT as reported in prior year.
Financial highlights:
· Organic revenue growth of 22% in the Manufacturing division with slightly improved margins.
· Proforma like for like revenues in VAD reflect 4% organic revenue growth.
· Strong operating cash generation results in a return to net cash of £0.3m (31 March 2019 net debt £1.9m).
· Significant contract wins previously announced have resulted in a solid Group open order book as at 31 October 2019 of £37.8m up 5.3% (31 October 2018: like for like £35.9m; previously reported £29.4m).
Operational highlights:
- Securing enlarged Microchip franchise announced in July 2019 is expected to positively impact VAD order intake in the second half.
- Significantly enhanced value added capability as a result of the investment in the Weymouth facility.
- Continued development of own brand computing products and investment in research & development particularly in the Computing, Power and Opto-electronics business units supporting the margin improvement.
- Investment in Business Development resource to target new customers and markets across both divisions.
Commenting on the results and prospects, Tony Frere, Chairman of Solid State 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.”
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