Solid State plc (AIM: SOLI), the AIM listed manufacturer of computing, power and communications products, and value added supplier of electronic and opto-electronic components, announces a trading update for the year ending 31 March 2021.
The Board is pleased to announce that trading since the half year has continued to be robust, with revenues expected to be broadly in line with, and profits expected to be ahead of, consensus forecasts. The revenue mix has remained strong with demand for higher value-added products, services and solutions maintaining margins. The strengthening pound has resulted in currency headwinds at a revenue level, albeit the Group's natural hedge mitigates the impact on profits.
The business has taken steps to manage the effects of extending delivery times on semiconductor components on both Solid State and its customers through proactively increasing stock levels. However, when combined with shortened customer order schedules resulting from their own lack of visibility there is potential for programme delays in the financial year 2022, albeit the Board currently expects trading activity to be comparable with this financial year.
This year's performance, notwithstanding the challenges of COVID-19 and Brexit, exceeds the prior year profitability.
Commenting on trading, Gary Marsh, Chief Executive of Solid State, said:
"We are very happy with the performance of the business this year. To be upgrading profit expectations ahead of last year, which was itself a record performance, given the challenges all businesses have faced, is testament to the hard work and commitment of the whole team and demonstrates the resilience of the business."