Solid State plc reports record revenues driven by organic and M&A growth
Solid State plc, a Redditch-based specialist value added component supplier and design-in manufacturer of computing, power, and communications products, has reported strong trading for the 12 months ended 31 March 2023.
The company announced record revenues of £125 million and adjusted profit before tax of £10.5 million, both up more than 46 per cent on the previous financial year. It also expects organic revenue growth on a constant currency basis to reach close to 20 per cent.
This figure excludes revenue contributions from Custom Power, a Californian battery systems and energy solutions provider acquired by Solid State in August 2022. The purchase has opened up new international opportunities in target markets, with Custom Power’s open order book growing by 11 per cent over the last year to $18.6 million.
Solid State has also been building relationships with BAE Systems and NATO, as the current geopolitical environment continues to drive government spending in the security and defence sectors. Late last year it secured key contracts to supply communications equipment to a defence sector client through NATO.
The company continues to invest in its own supply chain to fulfil upcoming orders this year and beyond. This proactive approach has reduced Solid State’s reliance on the global component supply chain, which continues to show inconsistencies.
Results from the last financial year have validated the Group’s organic and M&A driven growth strategy, as it sought collaborations, introduced new own brand products, and focused on structural growth markets.
Going forward, Solid State hopes to maintain in excess of 20 per cent compound growth in total shareholder return over the next phase of its development, which will take the company up to 2030.