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Solid State PLC on Monday said it grew profit and revenue double-digits largely on the back of strong demand for communications products. The Redditch, England-based company is the supplier and design-in manufacturer of computing, communication, and power products. In the year that ended March 31, pretax profit rose 45% to £12.2 million from £8.4 million the previous year. Revenue grew 29% to £163.3 million from £126.5 million. Customer demand for communications products brought about 80% revenue growth in the Systems division to £103.5 million from £57.5 million. Meanwhile, revenue from the Components division contracted 13% to £59.8 million from £69.0 million. This was attributed to the impact of currency headwinds and the unwind of industrial stocking. The company increased the final dividend by 7.4% to 14.5 pence per share from 13.5p, in turn bringing the total dividend to 21.5p, up 7.5% from 20.0p. Chair Nigel Rogers said: ‘I am delighted to announce that Solid State has delivered another record year of growth, continued strong cash generation and reduction in debt. Innovation and the group’s resilient business model, sector knowledge and customer diversity has also helped drive significant organic revenue growth.’ Total year-end net debt declined 42% to £4.7 million from £8.1 million. Solid State cut non-current borrowings 27% to £9.7 million from £13.4 million, whereas current borrowings multiplied to £3.4 million from £1.3 million. With open orders totaling £89.3 million on May 31, management said it is confident it is advancing its 2030 strategy, although expects revenue in the current year to be weighted towards the second half. The 2030 strategy aims to achieve 12% operating margins. In financial 2024 adjusted operating margins increased to 10.4% from 9.2%. Forecasts from Cavendish Capital Markets Ltd and WH Ireland Ltd expect Solid State, in financial 2025, to see a 33% fall in adjusted pretax profit to £10.1 million from £15.0 million, and a 13% revenue decline to £142.6 million. Solid State shares were down 4.0% to 1,469.00 pence each in London on Monday afternoon. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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