Solid State shares sink as it reports delay on potential defence orders

Shares in Solid State plc, the Worcestershire-based tech component manufacturer and supplier, fell on Friday (November 15) after it released a trading update concerning a delay regarding "certain potential defence orders".

In the statement, the Redditch-based firm noted that earlier this month it had highlighted "good visibility" over the expected recurring requirement for communications equipment in the security and defence sector.

But it added that it had now been told that expenditure on a "prominent defence order programme has been paused, we believe pending completion of the UK Government's strategic defence review next summer".

"As a result, the company's performance for FY24/25 will be materially below current consensus expectations," it added.

However, Solid State said it was confident that this was a temporary delay and that expected orders will still be received in due course, albeit that they will fall outside the current financial period.

CEO Gary Marsh said: "While the current delays in receiving orders are frustrating, our relationships with the Forces and key defence prime contractors underpins our confidence in the group's position within this sector.

"The board remains optimistic about the medium and long-term outlook for defence spending given the current geopolitical climate," he added.

"Aside from this order deferral, the open order book continues to improve across our target markets".

Shares lost around 34% on November 15.