11 March 2025

Solid State plc

("Solid State", the "Group" or the "Company")

$25m Communications Equipment Order

Solid State plc (AIM: SOLI), the specialist value added component supplier and design-in manufacturer of computing, power, and communications products, announces the receipt of a $25m order for communications equipment under a prominent defence order programme, to be delivered in the next financial year ending 31 March 2026 (FY25/26).

This order was previously expected to be received and delivered in FY24/25, however as announced in November 2024, it was put on hold following the change in the UK Government and pending the outcome of the Strategic Defence Review. Whilst the defence review is expected to report in the Spring, this order has been approved by exception.

The Group has continued confidence in its prospects within the defence & security sector, notwithstanding the interrupted order cycle of this particular programme, and has dedicated resources targeting further contract opportunities.

Given recent geo-political developments, and in light of this order, the Company intends to increase investment in the Group's production capabilities in both the USA and the UK to accelerate medium term organic growth opportunities within the defence & security sector.

Commenting on the Order, Gary Marsh, Chief Executive Officer, said:

"At the time we announced the delay in the original order in November 2024, due to the pause in defence expenditure resulting from the Strategic Defence Review, we were confident that the disruption would be temporary. 

"Despite the ongoing nature of the Strategic Defence Review, which is not expected to conclude for some months, this order has been approved for a largely comparable equipment list to the original postponed order.  This confirms the strategic need for Solid State's technology, which is likely to heighten given global security concerns and Europe's further commitment to strengthen its defence capability.

"We welcome this large order which improves our earnings prospects for FY25/26 and will enable us to increase investment and support organic growth across the business. The Company expects to announce a trading update in relation to the current financial year in April 2025 and remains confident in achieving market expectations for FY24/25."

The Company considers the average of the most recently published research forecasts prior to this announcement by all providers - Cavendish Capital Markets Ltd and Zeus Capital Ltd to represent market expectations for Solid State.

* Adjustments relate to IFRS 3 acquisition amortisation, share based payments charges and non-recurring charges in respect of re-organisation cost/acquisition costs and fair value adjustments.

Investor Site Visits to Head Office in Redditch

Solid State holds site visits to its head office in Redditch where operations from both the Systems and Components divisions can be seen.  Interested investors should contact [email protected].

This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

For further information please contact:

Analyst Research Reports: For further analyst information and research see the Solid State plc website: https://solidstateplc.com/research/

Notes to Editors:

Solid State plc (AIM: SOLI) is a leading value-added electronics group supplying industrial and defence markets with durable components, assemblies and manufactured systems for use in critical applications, with a particular emphasis on harsh operational environments. Solid State's products are found around the world, from the ocean floor and into space, ensuring the smooth operation of systems that augment our everyday lives.

The Company has a core focus on industrial and ruggedised computing, battery power solutions, antennas, secure radio systems, imaging technologies, and electronic components & displays.

Operating through two divisions (Systems and Components) the Group thrives on complex engineering challenges, often requiring design-in support and component sourcing. Serving a wide range of industries, with a particular focus on defence, energy production, aerospace, environmental, oceanographic, industrial, robotics, medical, life sciences, and transportation, the Solid State trading brands have become synonymous with quality and reliability. The Group operates under the brands of Steatite, Solsta, Custom Power, Pacer, Active Silicon, Gateway, Durakool and Q-Par.

Solid State plc is headquartered in Redditch, UK, and employs over 400 people around the world. The business has seven production facilities in the UK and two in the USA. In total, including all office locations, the Group operates from 14 national and international sites.

Solid State was established in 1971 and admitted to AIM in June 1996.  The Group has grown organically and by acquisition - having made five acquisitions in the last five years.  

Take a look at the videos below for more insight into the Solid State Group.

Introduction to Solid State - https://youtu.be/1M_Q_B1mYic

Why invest in Solid State? - https://youtu.be/ShmTz6005ws