Discover the Potential of Solid State: The Leading Provider of Electronics for Electric Car Manufacturers and Defence Giants
Solid State is not your typical electronics firm. With clients ranging from Ocado and GCHQ to the London Underground and Saab, this specialist company based in Redditch is in high demand. The key to their success? Components and computer systems that can withstand the harshest environments.
Solid State’s products are used in a variety of applications, from robots in Ocado’s warehouses and military drones to Tube trains and electric vehicles. While the company serves numerous businesses in the UK, it is also expanding its presence in the US and entering the European market.
Founded in 1971 by semiconductor expert Gordon Comben, Solid State has come a long way. Under the leadership of CEO Gary Marsh, the company has grown to employ around 400 people across 14 sites in the UK and America. Since its listing on AIM in 1996, Solid State has experienced steady organic growth and has successfully completed several strategic acquisitions. The company has consistently increased dividends and set ambitious targets for future growth.
Marsh and finance director Peter James are focused on doubling group earnings within five years, a goal that was already achieved in 2022. Now, their target is to deliver total shareholder returns of more than 20% annually until 2030. With strong financial results for the year ending March 31, Solid State is off to a great start. Sales increased by 48%, profits by 50%, and the order book grew by 30%. While dividends were only slightly higher, Marsh plans to keep cash reserves for potential acquisitions that will further fuel the company’s growth.
Solid State’s recent acquisition of California-based Custom Power marked its foray into the US market. With the promotion of renewable energy and electric vehicles under President Biden’s Inflation Reduction Act, the American market offers ample opportunities for Solid State’s products. Additionally, there are attractive deals to be made in Europe, particularly in Germany and the Netherlands.
As a provider of quality products and services, Solid State operates in resilient industries such as healthcare and defence. The company also benefits from the global shift towards electrification. From imaging technology for hospitals to battery packs and sophisticated radios, Solid State plays a vital role in multiple sectors. The company has even secured a contract with Transport for London to upgrade the Underground lines by supplying computer screens for train drivers.
Analysts predict further growth for Solid State, with projected sales of £147 million and profits of nearly £12 million for the next fiscal year. Marsh’s commitment to taking care of employees fosters a loyal workforce, further contributing to the company’s success.
In summary, Solid State is a promising investment opportunity. With a strong leadership team, a solid reputation, and a successful expansion into international markets, the company is well-positioned for continued growth. Current shares are priced at £12.60, leaving room for potential returns. Don’t miss this chance to be part of Solid State’s success story.
Trade on AIM with the ticker symbol SOLI. For more information, visit solidstateplc.com or call 01527 830 666.
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