$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.

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