Solid State expects FY results to beat recently upgraded consensus forecasts

Manufacturer Solid State said on Thursday that it expects to announce full-year results ahead of recently upgraded consensus forecasts after the final month of its trading year benefitted from demand being pulled forward and a "strong contribution" from the two businesses acquired by the group at the end of February.

Solid State said trading since its February update had continued to be "encouraging", with stable order flow and strong invoiced sales in March, driven in part by certain component shortages and customer stocking to mitigate supply chain risks.

The AIM-listed firm added that demand across the group had "generally been strong", with gross margins holding up, although it noted shortened customer order schedules and reduced visibility remained, as did foreign exchange headwinds.

Solid Stated added that the acquisitions of Active Silicon and Willow Technologies had integrated well, with trading in the first months of ownership being at the run-rate expected by management.

Chief executive Gary Marsh said: "The outcome for the full year represents an excellent achievement for the group, given that notwithstanding the disruptions of Covid and the Brexit uncertainty, the performance exceeded the prior year, which was itself a record year.

"Despite the residual market uncertainty and ongoing related supply chain constraints, the organic growth opportunities in our target structural growth markets provide an encouraging foundation for the future growth prospects of the group."

As of 1045 BST, Solid State shares were up 5.06% at 882.50p.