Solid State PLC
LSE:SOLI
Solid State PLC
Solid State Plc engages in the manufacture and distribution of electronic equipment, components, and materials. The company is headquartered in Redditch, Worcestershire and currently employs 245 full-time employees. The firm supplies electronic products, technology, and solutions. The firm operates through two segments: Value Added Supplies (VAS) and Manufacturing. The VAS division comprises Solid State Supplies Ltd, Pacer LLC, Pacer Components Ltd, Willow Technologies Limited and American Electronic Components, Inc. companies. The Manufacturing division includes Steatite Ltd, Active Silicon Limited and Active Silicon Inc. The VAS division primarily supplies designed-in products and solutions at the component and sub assembly level. The company serves original equipment manufacturing (OEM) and the contract electronics manufacturing (CEM) communities. The Manufacturing division operates with three business units, including computing, power, and communications, the Manufacturing division supplies electronics technology products and systems.
Solid State Plc engages in the manufacture and distribution of electronic equipment, components, and materials. The company is headquartered in Redditch, Worcestershire and currently employs 245 full-time employees. The firm supplies electronic products, technology, and solutions. The firm operates through two segments: Value Added Supplies (VAS) and Manufacturing. The VAS division comprises Solid State Supplies Ltd, Pacer LLC, Pacer Components Ltd, Willow Technologies Limited and American Electronic Components, Inc. companies. The Manufacturing division includes Steatite Ltd, Active Silicon Limited and Active Silicon Inc. The VAS division primarily supplies designed-in products and solutions at the component and sub assembly level. The company serves original equipment manufacturing (OEM) and the contract electronics manufacturing (CEM) communities. The Manufacturing division operates with three business units, including computing, power, and communications, the Manufacturing division supplies electronics technology products and systems.
Strong Revenue Growth: Revenue grew nearly 40% year-on-year, mainly due to the delivery of a significant communications order deferred from last year, with underlying revenue up about 4% when normalizing for one-offs and FX headwinds.
Order Book Strength: The order book reached GBP 97 million by November, boosted by major contract wins such as Project CAIN, positioning the company to meet or exceed full-year expectations.
Margin Stability: Gross margins remained stable at 31%, with operating margins recovering thanks to higher volumes and operational gearing.
Improved Cash Flow and Lower Debt: Net debt fell from GBP 7.4 million to GBP 7.1 million during the half, with strong cash generation and over 100% operating cash conversion, despite temporary working capital swings.
Raised Dividend Guidance: Full-year dividend guidance increased to 2.75p, with interim dividend at 0.92p and coverage at 3.5x.
Operational Investments: Continued investment in new facilities, talent, automation, and sales teams to support long-term growth across all divisions.
Upbeat Outlook: Management expressed optimism about upside risk, driven by a strong pipeline and new opportunities in high-value markets such as defense, antennas, and autonomous tech.
