Solid State plc (AIM: SOLI), the AIM listed manufacturer of computing, power and communications products, and value added distributor of electronic components, announces its Final Results for the 12 months to 31 March 2020.
Highlights include:
Financial overview:
Set out below are financial key performance indicators which reflect the record year and a very pleasing result:
KPI | 2020 | 2019 | Change |
Reported Revenue | £67.4m | £56.3m | +19.7% |
Proforma Revenue** | £67.4m | £64.7m | +4.2% |
Reported operating profit margin | 6.1% | 5.2% | +90bps |
Adjusted operating profit margin* | 7.2% | 6.5% | +70bps |
Reported profit before taxation | £4.0m | £2.8m | +42.9% |
Adjusted profit before taxation* | £4.7m | £3.5m | +34.3% |
Adjusted diluted EPS | 46.3p | 35.9p | +29.0% |
Underlying cash flow | £8.0m | £4.0m | +103% |
Net cash/(net debt) | £3.2m | (£2.0m) | +260% |
Dividend | 12.5p | 12.5p | – |
Open order book @ 31 May 2020 | £37.9m | £35.9m | +5.6% |
* Adjusted performance metrics are reconciled in note 7.
**Proforma revenue restates the prior year on a like for like basis to include the £9.4m pre-acquisition Pacer revenue for 2018/19 and excludes £1.0m non-recurring electronics revenue as reported in prior year.
The Group has delivered:
· 4% organic sales growth in proforma Group revenue, driven by 8.8% organic growth in Manufacturing and 1% growth in VAD against an electronic component distribution market that experienced a 7% decline
· Record profitability reflected in adjusted operating margins increasing 70bps to 7.2%, based on margin improvement in both divisions and the operational gearing
· Record operating cash generation of £8.0m with reported cash conversion of 197% (2019: 168%)
· Adjusted fully diluted EPS up 29% to 46.3p (2019: 35.9p)
· 5.6% organic growth in the open orderbook at the 31 May 2020
· Dividend maintained – testament to the resilience of the Group’s business model
Notable achievements in 2019/20 to advance our strategy included:
· Investment in technology across the Group including our battery pack designs, own brand computing products and enhanced production capabilities in the Weymouth value added facility
· Investment in business development resource to target new customers and markets for our technical solutions
· Integration of Pacer’s Opto-electronics business into VAD to enable the division to leverage the benefits of scale and reach
· Investment in ERP systems across the Group
Commenting on the results and prospects, Gary Marsh, Chief Executive of Solid State, said:
“I am very pleased to be presenting a set of results that demonstrates a resilient performance, enhanced by the Group’s structural characteristics. Our diversity in technology, markets and territory has offered some protection against the global headwinds in the period and enabled Solid State to deliver record results.
“The Board is confident that the achievements of the last year and the growth in the open order book demonstrate that Solid State is making good progress towards achieving its goals and that the prospects for the Group remain very positive in spite of the disruption that COVID-19 is causing.”
Investor Results Presentation:
Gary Marsh, Chief Executive, and Peter James, Finance Director, will hold a presentation to cover the results and prospects at 4.30pm on 30 June 2020.
The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company for free and add to meet Solid State plc via the following link. https://investormeetcompany.com/solid-state-plc/register-investor?arc=d9e8ece0-bac5-4100-ab1b-fdf0f9178636. For those investors who have already registered and added to meet the Company, they will automatically be invited.
Questions can be submitted pre-event to solidstate@walbrookpr.com, or in real time during the presentation via the “Ask a Question” function.
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