Solid State confident of FY results being 'significantly ahead' of expectations

Electronics supplier Solid State said it was "confident" that full-year profits would be "significantly ahead" of expectations following a "strong start to the year".

The AIM-listed group told investors on Tuesday that trading in the first four months of the year had been "very strong" and well ahead of budget.

Solid State expected revenues for the year to be in line with current consensus forecasts, although the group's directors believed there might be opportunities to generate "further incremental sales" later in the year.

Generally, revenues across the group were in line with management's expectations. However, Solid State noted that there had been an acceleration of certain project work into the first-half that had been expected in the second, benefiting reported revenues and profits for the half.

Stronger gross margins than anticipated, operational gearing benefits, positive exchange rates and recent acquisitions all helped Solid State turn in the improved performance.

Chief executive Gary Marsh said: "The board is very pleased with the start to the year, and to be upgrading profit expectations for the year, notwithstanding the heightened macroeconomic and political uncertainties of recent months.

"We look forward to updating further on trading and prospects in our trading update for the first half which will be released in late October."

As of 0845 BST, Solid State shares had shot up 14.88% to 494p.