Solid State revenue, profits rise in first half

Computing, power and communications components specialist Solid State reported first-half revenue of £59.4m on Tuesday, up from £39.4m year-on-year.

The AIM-traded firm said that included like-for-like constant currency organic revenue growth of around 31% for the six months ended 30 September.

Adjusted profit after tax improved 46% year-on-year to £4.16m, while operating cash generation of £0.58m delivered an adjusted operating cash conversion of 10%, due to investment in inventory/

Reported net debt, excluding IFRS 16 lease obligations, widened to £16.1m as at 30 September from £5.2m on 31 March, including deferred and contingent consideration of £14.4m, up from £6.6m.

Financial headroom within the group’s banking facilities stood at £9.2m, compared to £11m at the start of the period.

Solid State said it had a “robust” open order book of £117.8m as at 30 November, up 4.7% from the end of September and 37.8% higher than on 31 March.

“The group has delivered excellent first half results and is building strong momentum despite a more challenging macroeconomic climate,” said chairman Nigel Rogers.

“The successful acquisition of Custom Power has added resilience to the group and accelerated the expansion of our power business in the key North American market.

“We continue to see acquisitions as a key pillar of our growth strategy alongside internal investment to fuel organic growth.”

Rogers said that across the group, the company was working “closely” with customers and suppliers to mitigate the impact of global component shortages and macroeconomic challenges.

“This is evident in the order flow and the strong open order book, which gives the board confidence in the outturn for the full year.”

At 1536 GMT, shares in Solid State were up 4.64% at 1,376p.

Reporting by Josh White for