Trading Update

Solid State plc (AIM: SOLI), the specialist value added component supplier and design-in manufacturer of computing, power, and communications products, announces a trading update following receiving news of an expenditure delay regarding certain potential defence orders.

At the time of the trading update on 06 November 2024, management highlighted good visibility over the expected recurring requirement for communications equipment in the security and defence sector.

The Company has now received notification that expenditure on a prominent defence order programme has been paused, we believe pending completion of the UK Government's strategic defence review next summer. The Company is confident that this is a temporary delay and that expected orders will still be received in due course, albeit that they will fall outside of the current financial period. As a result, the Company's performance for FY24/25 will be materially below current consensus expectations. The timing of the strategic defence review means it remains uncertain whether these delays will also affect orders and deliveries originally expected in FY25/26.

Solid State expects to announce its Interim Results for the year ended 31 March 2025 in the first half of December and will provide a further update of trading at that time.

Gary Marsh, Chief Executive Officer, said:

"There is strong demand for our technology within the Forces, as operatives continue to experience the benefits of the communications equipment previously delivered.

"While the current delays in receiving orders are frustrating, our relationships with the Forces and key defence prime contractors underpins our confidence in the Group's position within this sector. The Board remains optimistic about the medium and long-term outlook for defence spending given the current geopolitical climate.

"Aside from this order deferral, the open order book continues to improve across our target markets"

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