3rd Dec 2019 11:46
(Alliance News) - Solid State PLC on Tuesday hiked its dividend after reporting an improved performance in the first half of its current financial year.
The stock was up 10% at 520.00 pence a share in London.
The AIM-listed electronic components distributor reported a 43% growth in revenue in the six months to the end of September to GBP33.6 million, while pretax profit almost doubled to GBP2.3 million from GBP1.3 million a year ago.
Operating margin, which the company termed as "an increasingly important" measure of its performance, improved 140 basis points to 7.1% from 5.7% year-on-year, helped by the favourable foreign exchange tailwinds.
Solid State declared an interim payout of 5.25p a share, up 25% from 4.20p paid a year earlier.
Looking ahead, the company said it is confident of meeting the market expectations for the full year, which are underpinned by a "solid" open order book.
"These record results vindicate our strategy and ensure a strong platform for future growth," said Chair Tony Frere.
By Evelina Grecenko; [email protected]
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