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The Business Magazine March 2024
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Strong trading at Redditch tech component company Solid State

28 March 2024
The Business Magazine article image for: Strong trading at Redditch tech component company Solid State
Solid State

A record year of trading at Redditch-based Solid State has buoyed confidence in the company.

Revenues and profits are expected to be ahead of expectations thanks to deliveries made this year rather than in the expected 2025.

Gary Marsh, Chief Executive Officer, said: "I'm delighted that the Group continues to show excellent resilience and the benefits of our divisional balance and sector focus against head winds in certain parts of the business. While we continue to take a prudent approach to managing expectations for the year ahead, I take comfort that our underlying business remains robust, balanced and I take great pride from the scale of orders that we have delivered during the course of what has been a record year."

Solid State's systems division has had an exceptionally strong year, with revenues approximately 80 per cent ahead of prior year, due mainly to high demand from customers in the security and defence sectors.

The revenue delivered earlier than previously expected was driven by customer requirements for communications products to be shipped as soon as they are available, reflecting their operational requirements.

In the company's components division, after exceptional demand of last year, and like others within the sector, the Group is seeing component lead times reduce, with customers moving to more normalised levels of stocking. This is resulting in a continued slowdown in the industrial sector, with some customers pushing out schedules through 2024.

The Group expects to have a strong orderbook with the orderbook expected to be at least 55 per cent of next year's current consensus billings and shorter lead times across the Group enable more efficient conversion of new orders into billings.

Solid State says it has also secured new mid-term opportunities with multiple tier one security and defence customers, anchored by a key customer, for which it will need to invest in and expand its "Integrated Systems" production capabilities.

Nicky Godding is editor of The Business Magazine. Before her journalism career, she worked mainly in public relations moving into writing when she was invited to launch Retail Watch, a publication covering retail and real estate across Europe.

After some years of constant travelling, she tucked away her passport and concentrated on business writing, co-founding a successful regional business magazine. She has interviewed some of the UK’s most successful entrepreneurs who have built multi-million-pound businesses and reported on many science and technology firsts.

She reports on the region’s thriving business economy from start-ups, family businesses and multi-million-pound corporations, to the professionals that support their growth and the institutions that educate the next generation of business leaders.

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