Solid State reports surge in first half pre-tax profit

Electronics manufacturer and distributor, Solid State, has reported a sales and profit increase for the six month period to 30 September.

Solid State posted a 40% increase in sales to reach a total of £17.1m compared to £12.2m in 2013. Pre-tax profits also surged to £1.5m, up 175% from £564,000 a year prior.

According to a statement released by the group, profits were driven upwards following the recent acquisitions of 2K1 in December 2013 and Q-Par in May 2013.

Subsequently, the group’s board has increased its interim dividend by 45% to 4.0p per share, compared to 2.75p for the same period last year.

Group chairman Tony Frere said: "These results represent both an excellent performance and a valuable underpin to the board's confidence in future prospects.

"Our ambition for the group intensifies as we benefit from new tender opportunities and the benefits of scale from the success of our growth strategy.

"I can report ongoing dialogue with potential acquisition targets, productive conversations with new product manufacturers, and encouraging new client and cross selling initiatives."

As of 11:40 on Monday, the group’s share price jumped 6.27% to 720.00p per share.