15th Nov 2024 10:37
(Alliance News) - Solid State PLC on Friday said it now expects to report results "materially below" the current market consensus, due to a pause in expenditure for a "prominent" defence order programme.
Shares in the Worcestershire-based electronics supplier for industry and defence were down 31% at 147.00 pence each in London on Friday morning.
Solid State said it believed the delay was pending completion of the UK government's strategic defence review next summer. The timing of this review remains uncertain, meaning the delays may hurt orders and deliveries in financial 2026 too.
Broker Cavendish now forecasts full-year revenue of GBP123 million for Solid State, which would represent a 28% fall from GBP163.3 million last year, and adjusted pretax profit of GBP4.0 million, down from GBP15.6 million.
Chief Executive Officer Gary Marsh 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."
Solid State is due to release its interim results in the first half of December.
By Emily Parsons, Alliance News reporter
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