1st Dec 2025 07:01
Solid State plc
("Solid State", the "Group" or the "Company")
Interim Results
Analyst Briefing & Investor Presentation
Solid State plc (AIM: SOLI), the specialist value added component supplier and design-in manufacturer of computing, power, and communications products, announces its Interim Results for the six months ended 30 September 2025 ("First Half", the "Period", or "H1 2025/26").
Trading performance during the six months ended 30 September 2025 was strong, benefitting from the delivery of a major communications order which more than offset ongoing softness within the industrial sector. The revenue generated from these communications programmes arise from close relationships with commercial partners, and with national and international agencies. These projects are typically long term in nature and may span several years. Such contracts typically generate high value revenue with an irregular cadence as they complete, followed by recurring revenue from both product sales and through life support.
Headline Revenues in the Period were £85.7m, up 38.6% over the equivalent prior year period. When, adjusting for the impact of communications sales and a currency headwind, underlying revenues increased by 3.6%. Accordingly, adjusted profits before tax were £4.9m. Whilst order intake was slower in H1 2025/26, pleasingly we have seen order intake recover strongly at the beginning of H2 and the Directors remain confident in meeting consensus market expectations for FY25/26.
The strong financial performance was overshadowed by the recent sad news that Gary Marsh, Chief Executive for over twenty years, has died after a short illness. He has left an enduring legacy. John Macmichael has been appointed as Interim CEO to lead the business, supported by the Board and senior management team.
Financial highlights:
| H1 2025/26 | H1 2024/25 | Change |
Revenue | £85.7m | £61.8m | 38.6% |
Gross margin | 31.0% | 31.1% | -10bps |
Operating profit margin | 5.3% | 3.0% | 230bps |
Adjusted operating profit margin* | 6.5% | 5.1% | 140bps |
Profit before tax | £3.8m | £1.2m | 216.6% |
Adjusted profit before tax* | £4.9m | £2.5m | 96.0% |
Diluted earnings per share** | 5.0p | 1.7p** | 194.1% |
Adjusted diluted earnings per share** | 6.5p | 3.5p** | 85.7% |
Interim dividend | 0.92p | 0.83p | 10.8% |
Net cash flow from operating activities | £4.1m | £7.2m | -43.1% |
Adjusted operating cash conversion | 102% | 231% | -129% |
Net debt*** | £(7.1)m | £(2.0)m | +255.0% |
Open order book at 30 September | £87.3m | £76.6m | +14.0% |
* Adjusted performance metrics are reconciled in note 5, and these metrics exclude the impact of one-off items, acquisition-related intangible amortisation, non-recurring tax credits, non-recurring charges in respect of re-organisation costs, acquisition fees and share option expenses.
** Prior year comparative is restated for the impact of the bonus share issue in October 2024, see note 6.
*** Net cash / (debt) includes net cash with banks £5.8m (H1 24/25: £8.4m), bank overdrafts of £1.7m (H1 24/25 £Nil), bank loans of £10.7m (H1 24/25: £10.4m), deferred consideration of £0.4m (H1 24/25: £Nil) and excludes the right of use lease liabilities of £5.4m (H1 24/25: £3.7m).
Commercial and operational highlights:
· Enhanced capacity and capabilities through opening new integrated systems facility, now delivering product and providing opportunities to secure more premium business and support mid-term growth.
· Secured a £1.65m integrated systems order from a new government customer attracted by technical capability and capacity.
· Invested in consolidating Active Silicon business into one facility, enhancing collaboration and operational effectiveness.
· Follow-on international $5.2m IoT contract award from US franchise line.
· Custom Power & Volklec UK collaboration to deliver a sovereign, end-to-end energy solution for the UK defence sector.
· Delayed communications programme to NSPA carried over from the prior year into the Period has seen the Group deliver £23.3m of communications product revenue to NSPA in H1 2025/26.
· Successful DSEI trade show in London drove strong order intake for communications technology with increased order intake from multiple customers and significant new opportunities arising.
Post-Period highlights:
· Order intake from defence and security customers remains robust with ongoing demand from multiple tier 1 customers.
· Strong demand and order intake for battery products with multiple autonomous applications.
· Secured a significant contract to deliver communications product under project CAIN to the British Army, which is a multi-year programme. The initial order of $10.8m provides a foundation for potentially significant follow-on revenues. Delivery of the initial systems under this programme is expected during 2026.
· The open orderbook at 30 September 2025 of £87.3m (H1 24/25: £76.6m) has rebuilt to £97.0m on 30 November 2025 (30 November 2024: £85.5m), which, combined with a strong prospect pipeline, gives the Directors confidence in meeting full year consensus analyst expectations1.
· Board further strengthened by appointment of Victor Chavez CBE as Non-Executive Deputy Chairman announced today
Commenting on the results and prospects, Nigel Rogers, Chairman of Solid State, said:
"The significantly improved trading performance in the first half of the year reflects the benefits of our targeted market sector strategy, where we have had strong demand in the defence and security sector including strong shipments of communications products. The Board is confident that ongoing investment in facilities, capabilities and people will continue building a strong platform for strategic growth across the Group.
"Industry data indicates that the European electronics market appears to have been reset to a lower base. The industrial sector is particularly depressed, and the recovery of the cycle is slow. However, our leading indicators, including the rate of design activity and new opportunity pipeline, indicate that there are good grounds to be optimistic as we look forward to 2026 and beyond. This is reinforced by the improvement in orderbooks since the Period end.
"The Directors are confident of a return to a growth trajectory, whilst taking a prudent approach to short term earnings guidance to recognise some uncertainty on timing."
1 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.
Market Expectations | FY25/26 | FY26/27 |
Revenue | £145.2m | £149.4m |
Adjusted profit before tax* | £7.2m | £8.0m |
Net (debt) / cash | (£4.3m) | (£2.4m) |
Analyst Briefing: 9.30 a.m. today, Monday 1 December 2025
An online briefing for Analysts will be hosted by John Macmichael, Interim Chief Executive, Peter James, Chief Financial Officer, and Matthew Richards, Divisional Managing Director (at 9.30 a.m. today, Monday 1 December 2025 to review the results and prospects. Analysts wishing to attend should contact Walbrook PR on [email protected] or on 020 7933 8780.
Investor Presentation: 2.00 p.m. on Tuesday 2 December 2025
John Macmichael, Interim Chief Executive; Peter James, Group Finance Director, and Matthew Richards Divisional Managing Director; will hold a presentation to cover the results and prospects at 2.00 p.m. on Tuesday 2 December 2025. The presentation will be hosted through the digital platform Investor Meet Company. Investors can sign up to Investor Meet Company for free and add to meet Solid State plc via the following link https://www.investormeetcompany.com/solid-state-plc/register-investor. Investors who have already registered and added to meet the Company will automatically be invited.
Questions can be submitted pre-event to [email protected], or in real time during the presentation via the "Ask a Question" function.
Investor Site Visits to Head Office in Redditch
Solid State holds site visits to its head office in Redditch where operations from both the Systems and Components divisions can be seen. Interested investors should contact [email protected].
This announcement contains inside information for the purposes of Article 7 of the UK version of Regulation (EU) No 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
For further information please contact:
Solid State plc Nigel Rogers - Chairman John Macmichael - Interim Chief Executive Peter James - Group Finance Director | Via Walbrook |
Cavendish Capital Markets Limited (Nominated Adviser & Broker) Adrian Hadden / Callum Davidson (Corporate Finance) Jasper Berry / Tim Redfern (Sales / ECM) | 020 7220 0500 |
Walbrook PR (Financial PR) Tom Cooper / Nick Rome / Joe Walker | 020 7933 8780 0797 122 1972 |
Analyst Research Reports: For further analyst information and research see the Solid State plc website: https://solidstateplc.com/research/
Notes to Editors:
Solid State plc (AIM: SOLI) is a leading value-added electronics group supplying industrial and defence markets with durable components, assemblies and manufactured systems for use in critical applications, with a particular emphasis on harsh operational environments. Solid State's products are found around the world, from the ocean floor and into space, ensuring the smooth operation of systems that augment our everyday lives.
The Company has a core focus on industrial and ruggedised computing, battery power solutions, antennas, secure radio systems, imaging technologies, and electronic components & displays.
Operating through three divisions (Systems, Power and Components) the Group thrives on complex engineering challenges, often requiring design-in support and component sourcing. Serving a wide range of industries, with a particular focus on defence, energy production, aerospace, environmental, oceanographic, industrial, robotics, medical, life sciences, and transportation, the Solid State trading brands have become synonymous with quality and reliability. The Group operates under the brands of Steatite, Solsta, Custom Power, Pacer, Active Silicon, Gateway, Durakool and Q-Par.
Solid State plc is headquartered in Redditch, UK, and employs over 425 people around the world. The business has seven production facilities in the UK and one in the USA. In total, including all office locations, the Group operates from 13 national and international sites.
Solid State was established in 1971 and admitted to AIM in June 1996. The Group has grown organically and by acquisition - having made five acquisitions in the last five years.
Take a look at the videos below for more insight into the Solid State Group.
Introduction to Solid State - https://youtu.be/1M_Q_B1mYic
Why invest in Solid State? - https://youtu.be/ShmTz6005ws
CHAIRMAN'S REVIEW
Trading performance during the six months ended 30 September 2025 was strong, benefitting from the delivery of a major communications order which more than offset ongoing softness within the industrial sector and, to an extent, headwinds presented by continuing changes in US tariffs.
The revenue generated from these communications products and associated services arises from close relationships with commercial partners, and with national and international agencies. These projects are typically long term in nature and may span several years. Such contracts typically generate high value revenue with an irregular cadence as they complete, followed by recurring revenue from both product sales and after sale services.
On a constant currency basis and excluding the impact of the large communications project, year-on-year revenues are up £2.3m. The strength of the USD rate has resulted in revenue headwinds in the Period of approximately 2.7%, albeit our natural hedge means the profit impact is substantially lower.
The Group has entered the Second Half with a solid open orderbook of £87.3m of which >60% is expected to ship in the Second Half, meaning the Board is confident of meeting full year consensus expectations.
Strategy and progress
The Group has set a goal of growing the underlying "core business" (normalised for the periodic revenues peaks associated with initial adoption of communications technology) to deliver 20p of adjusted EPS by 2030.
Solid State's growth strategy combines organic and acquisitive growth to actively target strategic customers in sectors with high barriers to entry that require accreditations, long standing credibility, and specialist skills and experience where our technology adds tangible value. The Group's key target markets include defence and security ("D&S"), medical, transport, and industrial automation.
The Group's capabilities and technology remain highly relevant and valuable in all our target growth sectors and our pipeline of opportunities continues to develop. Current market dynamics mean that in the near term, we anticipate the key driver of growth to be within D&S where we have continued to see strong demand for our design-in engineered technology systems, services and components.
We organised the Group into three core divisions, delivering focus built on the core technological and engineering competencies which are aligned to delivering value to customers in the target markets. Within each of the divisions at a business unit level we are continuing to simplify and harmonise our processes, procedures, and systems to support scaling the business units and in turn, the associated divisions as we look forward to achieving our 2030 goals.
Strategic direction
We are seeking to drive growth, scaling the individual business units by delivering value through our trusted technologies. This is being achieved by focusing on markets where our core competencies and the engineering expertise are recognised and valued.
Our four strategic pillars to drive growth are:
• Talent development embedding our ESG values;
• Broadening our complementary product and technology portfolio;
• Engineer-in trusted technology for demanding applications, securing recurring high quality revenue; and
• Internationalisation of the Group.
The following key milestones represent critical steps in the delivery of our strategy, and are foundations upon which our 2030 plans and ambitions are being built:
• Investment in the development of our technical capabilities and expertise with the new integrated systems facility becoming operational, delivering enhanced capabilities and value-added differentiation of our offering to our Tier 1 customers;
• Continue to generate cash and pay down borrowings to position the Group for future investments;
• Separation of the Power division where we have continued to invest in developing the leadership team under a Global Vice President / General Manager, improving technical expertise and increasing scale. We are seeing benefits from improved collaboration and the focus with the global Custom Power brand; and,
• Post Period-end, the Group announced an initial order valued at $10.8m under Project CAIN, a major defence programme where a new UK Government end user Group has adopted the Persistent Systems radio communications technology.
Environmental Social and Governance ("ESG")
ESG is at the core of Solid State's strategy, creating a long-term sustainable business which minimises our impact on the environment and maximises value for our stakeholders.
Our technology, products and systems are designed and engineered to be high quality, often upgradable with a long life, and energy efficient, which inherently means we are starting from a strong position. These characteristics help to differentiate us from our competitors and enable us to be ambitious in how we operate. We believe we are a business leading on ESG in our sector.
Our ESG Committee continues to improve our communication with stakeholders to articulate our ESG strategy and deliver on our goals, including achieving net zero in Scope 1 and 2 emissions by 2050.
Performance and markets
Group
Solid State has been successful in building on its relationships with Tier 1 customers across our target growth markets of defence and security, medical, transport, and industrial automation, where we have seen design-in and equipment contract wins with certain larger orders announced during the Period and post Period-end. Our long-standing relationships, strong commitment to customer service, and proactive management of semiconductor supply chains have enabled us to maintain a well-diversified customer base across our target markets underpinning our resilient business model.
The Group is now very well positioned in D&S markets. This sector is highly regulated, with substantial barriers to entry for those without many years of experience and the necessary personal and facility accreditations. The Directors have identified high growth potential for this business, which has excellent relationships with strategically important customers, innovative world-class technology, and operates in an environment which will benefit from well documented increased levels of public spending, both domestic and internationally, in coming years.
Having achieved the ISO13485 medical standard in our production facility in Weymouth in the prior year, we will continue to invest in enhancing the Group's accreditations which are relevant to our target markets which provide barriers to entry and ensure that our engineering value-add is recognised by our customers. While the D&S market is currently very buoyant, we continue to develop our other target markets such as medical and transport where our accreditations, know-how and longer design cycles are valued. Developing these markets over the longer term will complement and balance our strength in the D&S market.
Components
The market for industrial IoT products has been strong against the backdrop of a weaker industrial sector where we have seen the global electronics market continue to normalise, with orderbooks adjusting to reflect shorter lead times and unwinding of overstocking. Political and economic uncertainty has affected some sectors, with certain customers delaying orders in response to shorter lead times combined with slower demand. However, like the rest of the Group, our Components division has continued to see strong demand and increased billings for components utilised in the D&S sector.
Systems
Within the Systems division, the Group is building a robust platform to deliver growth, including the addition of highly skilled and experienced people, and opening new capacity in a dedicated "integrated systems" production facility which is now operational and contributing revenue. This facility has boosted the Group's technical capabilities and capacity, which is driving organic growth, and improving mid-term margins.
This facility provides significant capacity for growth over the coming years to 2030. Having commenced deliveries in this financial year we expect the facility to cover its costs; however the utilisation is modest, which means it will continue to be dilutive to the Group's operating margins while we demonstrate delivery and ramp utilisation over the coming periods.
Towards the end of the Period, the Group announced the award of a significant contract for this facility from the Defence Science and Technology Laboratory, an executive agency of the Ministry of Defence of the United Kingdom ("UK MoD"). Improving utilisation will mean that this facility and the associated capabilities will realise the operational gearing benefits resulting in an enhancement of the Group's operating margins as we progress towards our 2030 strategy horizon.
Power
As recently announced the Group's Power division has achieved significant progress by securing several new and major follow-on orders for battery systems from key Tier 1 customers in the robotics, drone, and naval maritime sectors. These high-quality projects, along with an improving pipeline of prospects in both the US and UK, reflect a strategic shift toward higher-value activities.
This focus is delivering significantly improved performance having exited lower value-added customer accounts in the prior year. Based on the progress, we have committed to a phased investment plan which will ensure we enhance our operational capabilities, quality and capacity, which is critical to establishing capacity and a differentiated offering for our customers to underpin delivery of our mid-term growth ambitions.
Branding and Market positioning
Having completed the initial adoption of the new branding for the existing Group companies with Active Silicon, Steatite, Q-PAR USA and Custom Power all adopting the common approach, we are seeing the benefits of this family of brands. This has made it simpler to articulate "who we are, what we do and why our offering is unique and different from our competitors". It has also provided a common brand platform facilitating the presentation of Group capabilities to existing and new customers.
Tribute to Gary Marsh (CEO 2002 - 2025)
I have had the great pleasure of working alongside Gary Marsh since joining the Board of Solid State in 2019. He had a deeply ingrained understanding of the business and its people. He led the Company for many years with abundant skill and sound judgement, but more importantly with a warm and friendly personal touch. He engendered an exceptional company culture, consistent with its roots as a family-owned enterprise, but with the polish and professionalism of a listed company.
He was also valued, respected and well-liked by many long-standing institutional investors, who have been very kind in coming forward with messages of condolence to his family, and support for the Board, management and the Company as a whole. These have been much appreciated.
He will be greatly missed by all of us, yet the strongest tribute is his legacy; a closely knit executive group with the leadership skills and experience to ensure continuity and future success, supported by a talented and committed workforce across the Group.
Board structure and succession planning
The Board is grateful that John Macmichael has accepted the invitation to step in as Interim Chief Executive. He is well supported by a strong executive team at Solsta, enabling him to dedicate the required time for this additional responsibility. John's interim role will be for a minimum period of six months to enable him to continue to work to a long-term horizon whilst the future needs of the Company are considered at a more appropriate time.
On a separate note, the Board is pleased to announce the appointment of Victor Chavez CBE as Deputy Chairman with effect from 1 January 2026. Victor has broad sectoral experience spanning the many of the key markets of the Group, underpinned by a strong technology background as former Chief Executive of Thales UK, a £1.2 billion business employing circa 6,500 people. He has a strong track record of growing businesses and working closely with government and commercial customers and has proven experience of implementing strategic and organisational development programmes in complex businesses. We welcome him to the Board and look forward to his insight and valuable contribution.
Victor's appointment is part of a wider ranging succession plan, under which he is expected to step into the Chair role during a twelve-month transitional arrangement throughout 2026. I have indicated my own willingness to remain as a non-executive director following this transition to support Victor and the Board for an agreed period.
People and leadership development
Group leadership continues to be strengthened by the Executive board, reporting to the Directors, which has been tasked with the delivery of strategic objectives, monitoring and control of ongoing operational and commercial activities and continuous improvement. The "Executive board" is working well and is driving progress in developing and delivering the 2030 strategy and providing a structure for development of talent and the next generation of leadership;
We remain committed to investing in new talent and strengthening our senior team across the Group. This includes implementing a General Management structure within the Systems business units, enhancing the US team with Engineering, Quality, and HR management roles, and recruiting additional talent in IT, Quality, Health & Safety, and Project Management in the UK.
Developing our Group leadership team is a critical driver for future growth. Significant investment has been directed towards building expertise in growth areas such as communications and integrated systems, with several internal promotions reflecting our commitment to nurturing talent. Talent acquisition processes and systems are being developed globally. The introduction of an internal recruitment function has led to 78% of talent being sourced in-house this financial year.
The work of the ESG Committee is continuing to build our internal communications through HR roadshows, to ensure that our environmental, social and wellbeing initiatives are embraced by our people. The Executive board is driving progress in updating, refocusing and delivering the strategy, strengthening the leadership, and improving succession planning, which is critical in ensuring our leadership structure can deliver the next phase of the Group's growth.
We're a proud signatory of the Armed Forces Covenant and are working toward achieving Silver status. Our policies are being refined to align with the covenant's commitments, ensuring real support for those who have served. We're also proud to employ ex-servicemen and women, whose skills and discipline strengthen our team every day.
M&A activities
The Group remains acquisitive, with an active and well-developed pipeline of opportunities across all three divisions which are under consideration. The Board continues to pursue attractive acquisition prospects across target markets in the UK and overseas, with a focus on enhancing capability, advancing technology, and supporting the Group's international expansion.
The Board sees M&A providing the potential to replicate established UK technology and technical capabilities in new territories providing a lower-risk means of establishing local presence and accelerating growth in the region.
Outlook
The Board has set out a strategy for Solid State to develop its business through the delivery of multi-year, multi-product programmes as a valued partner to international blue-chip customers which will improve the quality of earnings from the core activities, with overlaying periodic project revenues and profits which will add significant shareholder value in those periods. This has delivered consistent success over the past several years, including record financial results in FY23/24 and a very strong start to the current financial year.
Our core markets are highly regulated, with significant barriers to entry and opportunities to earn premium margins. In addressing and scaling our core capabilities to meet these exacting requirements, the Group invests in talent, facilities and product development, sometimes ahead of the available return.
The Board remains confident that the strategic priorities and focus remain unchanged, and the business model is resilient.
Our Components division has faced challenging market conditions in recent periods, with subdued industrial demand resulting in broadly flat billings. The business remains focused on maintaining an efficient cost base while retaining key talent and engineering expertise to support growth as markets recover. Despite current headwinds, the division provides a stable foundation and is well positioned to benefit from operational gearing as volumes return to prior highs.
Our Systems division is focused on positioning the business to capitalise on the significant growth potential arising from the strong demand for our world-leading radio frequency (RF) antennas and integrated systems capabilities. The Group is committed to continuing to invest in the facilities establishing capacity and capability to realise these potentially transformational growth opportunities.
Our Power division is beginning to see the benefits of its strategy to focus on premium customers in markets that value and require our engineering expertise. We remain committed to investing in advanced capabilities to stay at the forefront of battery pack technology for our target markets, enabling the division to scale and deliver significantly improved operating margins.
Very positively, the order intake in recent weeks has improved, which is reflected in the Group order book at 30 November 2025 of £97.0m. This provides confidence that current earnings guidance for this year and next is deliverable, with potential to build foundations for future outperformance.
Nigel Rogers
Chairman1 December 2025
FINANCIAL REVIEW
Revenue
The Group reported revenue of £85.7m for the Period (H1 24/25: £61.8m), representing a 38.7% increase compared to the prior period.
The primary driver of this increase was the recognition of £23.3m in respect of periodic communications revenues which were delayed from the prior year. These shipments more than offset the currency-related revenue headwind of approximately £2.8m, with the average USD exchange rate at $1.34:£1 (H1 24/25: $1.28:£1).
Adjusting for the impact of "periodic communications programme revenues" and foreign exchange, revenues increased by approximately 3.6%. This increase in revenues reflects stronger demand from the defence and security ("D&S") sector offsetting the challenging markets continuing in the industrial and transport sectors.
Divisional review
The Components division delivered revenue of £30.0m (H1 24/25: £26.8m), a 11.9% increase on the prior year driven by demand in contract manufacturers in the D&S market while the industrial, medical and transport sectors have been stable, albeit have rebased at a lower level than previously seen. Design activity remains strong and post Period-end we have seen an upturn in order intake which provides confidence that we will see stronger billings in the Second Half.
The Systems division revenues include periodic revenues in respect of communications programmes as well as longer term integrated systems projects. As noted above, in this period it has delivered a strong start to the year, with reported revenues of £38.7m (H1 24/25: £21.5m) driven by D&S communications shipments. The revenue pipeline for H2 is robust and we are excited about the mid-term growth opportunities for all three business units (Antenna's, Communications and Computing Systems).
The Power division has had a strong start to the financial year with reported revenues of £17.0m (H1 24/25: £13.4m) reflecting the benefit of seeing the deliveries beginning to build for the orders secured in the prior financial year from key Tier 1 customers in the medical, drone, and naval maritime sectors.
As we have recently announced, there is a strengthening pipeline and we are continuing to invest in enhancing our capability to enable the business to meet the significant opportunities we have sight of in the pipeline. This investment is being made ahead of the revenue, which is diluting the operating margins in the short-term. However, the investment is critical to ensure we can execute on meeting customer expectations and realise our mid-term growth ambitions and strategic goals.
As a result of macro-economic uncertainty both in the US, with the impact of tariffs, and the recent UK budget, we have seen customers placing shorter orders and delays in placement of orders. Despite these headwinds, we are identifying promising opportunities, where we have seen a notable improvement in the project pipeline and contract awards within the D&S sector, as noted above as well as several important follow-on orders within the Components division. This reinforces our confidence in delivering Second Half performance in-line with the revised expectations.
Looking ahead to 2026 and beyond, the Group's initial communications order under project CAIN gives confidence that additional major projects and revenue opportunities will arise as the communications technology is adopted by a growing number of D&S users across the NATO alliance.
Gross margins
Group margins are broadly stable year on year at 31.0% (H1 24/25: 31.1%). The absolute value of product margins in the First Half have been stable across the Group, however in passing on tariffs we have faced a dilutive impact to the margin %, albeit at a Group level this is mitigated by the strong Systems billings enhancing the revenue mix. Consequently, gross margins for the Period totalled £26.5m (H1 24/25: £19.2m).
Overheads
Sales, general, and administrative expenses for the Period were £22.0m (H1 24/25: £17.4m) and are significantly higher than the prior year, reflecting ongoing investment of circa £2.5m and circa £2.1m of variable overheads associated with the strong performance in the Period.
The Group remains committed to its investment in key areas with strong mid-term growth potential, including our new integrated systems facility in Tewkesbury and the expansion of our capability to deliver additional RF antenna communications products.
Operating margin
The adjusted performance metrics are reported to provide a clearer view of the Group's ongoing cash-based performance and these remain consistent with prior periods. These metrics exclude the impact of one-off items, acquisition-related intangible amortisation, non-recurring tax credits, non-recurring charges in respect of re-organisation costs, acquisition fees and share option expenses.
Group adjusted operating margins remain a key focus. Having seen stronger trading, the Group has observed an operational gearing benefit, albeit the increase is curtailed by the ongoing critical investments as noted above.
The result is that Adj. operating margins have improved to 6.5% (H1 24/25 5.1%). This is a positive step towards the mid-term goal of circa 10% and as we continue to improve the facility utilisation across the Systems and Power divisions, and benefit from the operational gearing benefits within Components, we are confident we can realise this goal.
Reported operating margins also improved to 5.3% (H1 24/25: 3.0%).
PBT
Adjusted profit before tax ("PBT") has increased to £4.9m, up 96.0% (H1 24/25: £2.5m). Profit before tax was £3.8m (H1 24/25: £1.2m).
Tax
The expected effective tax rate has increased year-on-year to 25.0% (H1 24/25: 19.1%), primarily due to higher profitability. This has diluted the impact of share option tax deductions and enhanced tax allowances, expected to increase the effective rate to the standard rate of 25%. It is worth noting that the benefits from R&D tax credits are reflected within operating margins rather than in the tax line in both periods.
PAT
Adjusted profit after tax ("PAT") has increased to £3.7m, up 85.0% (H1 24/25: £2.0m). Profit after tax was £2.9m (H1 24/25: £1.0m).
EPS
The prior year basic and adjusted EPS figures have been restated for the bonus share award of 4 shares for every one share held which was completed in October 2024.
The stronger start to the financial year results in adjusted diluted earnings per share ("EPS") at 6.5p (H1 24/25: 3.5p (previously reported 17.5p) and with basic EPS of 5.1p (H1 24/25: 1.7p (previously reported 8.6p). With a the strong open orderbook underpinning a solid second-half contribution, we remain confident in meeting full-year expectations.
Dividend
The Board remains committed to delivering returns to shareholders, including the payment of dividends. Based on the Group's trading performance in the First Half and the outlook for the full year, the Board has declared an interim dividend of 0.92p per share (H1 24/25 reported: 0.83p).
The interim dividend will be paid on 13 February 2026 to shareholders on the register as of close of business on 23 January 2026. Shares will go ex-dividend on 22 January 2026.
Cashflow
Operating cash
Operating cash generation during the First Half remained a key focus for the management team. The Group has continued to be cash generative in the Period with cash generated from operations of £5.7m (H1 24/25: £8.8m), reflecting the significant investment in working capital associated with the communications orders shipped at the end of the Period. This resulted in an adjusted operating cash conversion of 103% (H1 24/25: 284%).
Consistent with the prior year, during the First Half we made final payments and payments on account in respect of taxation of £1.7m (H1 24/25: £1.6m).
Investing activities
Capital expenditure in the First Half was broadly consistent with prior years at £1.6m (H1 24/25: £1.6m). The primary project during this period was the fit-out of the upstairs at our Waterside Langley facility having consolidated into one site and the continued investment in our integrated systems facility, combined with ongoing replacement across the Group. We anticipate the full-year capital expenditure to be consistent with the previous year as we continue to invest in enhancing our capabilities.
In the First Half, there were no acquisition-related payments, however we expect to see payments of £0.3m in the Second Half.
Financing activities
Underpinned by the strong cash generation during the First Half, we have paid the final dividend of £0.9m (H1 24/25 £1.6m).
During the Period we refinanced our facilities putting in place a £15m committed multi-currency revolving credit facility (RCF) with a £10m uncommitted accordion and a £5m uncommitted overdraft with the Group's existing banking partners. The committed elements of these facilities are for three years and replace the previous finance arrangements.
As a result, we have seen the repayment of the existing facilities, offset by a drawdown of the new RCF. Overall, our borrowings have increased by £1.9m to £12.4m in the Period, including the utilisation of £1.7m of the overdraft to fund the short term USD working capital requirements associated with the large shipments close to the {Period-end.
During the Period our interest payments were £0.4m (H1 24/25: £0.6m) and payments in respect of right of use assets were £0.7m (H1 24/25: £0.8m).
Statement of financial position
Inventory
Inventory levels across the Group continue to be an area of focus, compared to the year-end position they have decreased slightly to £26.4m (H1 24/25: £25.4m; Full Year 24/25: £28.2m).
Receivables
Receivables at the half-year stood at £27.9m (H1 24/25: £18.7m; Full Year 24/25: £21.6m), which is significantly higher than the prior reporting periods. This increase reflects strong billings at the end of the First Half noted above. Receivables ageing continues to be good and the cash collections post Period-end have been strong as the receivables have normalised.
Net assets
The strong trading performance resulted in net assets increasing from £61.5m at the year-end to £62.2m (H1 24/25: £62.5m). The £2.9m retained profits and the £0.1m share-based payments credit have been offset in part by the final dividend payment of £1.0m and a £1.3m foreign currency translational impact recognised in reserves.
As the Company has typically done in previous years, we expect to purchase a modest number of shares into treasury for the purpose of the all employee share scheme during the Second Half.
Net debt
Net debt reduced from £7.4m at the year-end to £7.1m (H1 24/25: £2.0m), reflecting modest cash generation during the First Half. At Period-end, net debt comprised £5.8m in cash with banks offsetting £12.4m in borrowings and £0.4m in deferred consideration.
We expect to benefit from a modest unwind in working capital in the Second Half, therefore we expect our cash generation to be Second Half weighted, meaning we expect net debt to come down broadly in-line with expectations.
Leverage (defined as Net debt / EBITDA) on a full year basis is expected to be circa 0.4x, which means the business should have in excess of £10m debt capacity to fund future investment both organic and bolt-on acquisitions to drive our growth strategy.
Statement of Directors' responsibilities
The Directors confirm that this condensed consolidated interim financial information has been prepared in accordance with International Accounting Standard 34, "Interim Financial Reporting", as set out in the basis of preparation paragraph within the accounting policies, and that the interim management report herein includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
• an indication of important events that have occurred during the first six months, and their impact on the condensed consolidated interim financial information, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
• material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.
Forward-looking statements
Certain statements in this Half-Year Report are forward-looking. Although the Group believes that the expectations reflected in these forward-looking statements are reasonable, we can give no assurance that these expectations will prove to be correct. Because these statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. We undertake no obligation to update any forward-looking statements whether arising as a result of new information, future events or otherwise.
Peter James Chief Financial Officer 1 December 2025
INTERIM CONSOLIDATED INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
Continuing operations | Unaudited Six months to 30 Sept 25 £'000 | Unaudited Six months to 30 Sept 24 £'000 | Audited Year to 31 Mar 25 £'000 |
Revenue (see note 4) | 85,653 | 61,775 | 125,064 |
Cost of sales | (59,113) | (42,586) | (85,737) |
Gross profit | 26,540 | 19,189 | 39,327 |
Sales, general and administration expenses | (22,014) | (17,359) | (37,993) |
Profit from operations | 4,526 | 1,830 | 1,334 |
Finance costs | (678) | (624) | (1,014) |
Profit before taxation | 3,848 | 1,206 | 320 |
Taxation expense | (963) | (231) | 192 |
Adjusted profit after taxation | 3,728 | 2,018 | 3,563 |
Adjustments to profit (see note 5) | (843) | (1,043) | (3,051) |
Profit after taxation | 2,885 | 975 | 512 |
Other comprehensive loss - FX on overseas operations | (1,302) | (1,794) | (688) |
Other comprehensive income - taxation | - | - | 43 |
Adjusted total comprehensive income for the period | 2,426 | 224 | 2,875 |
Adjustments to total comprehensive income/ (loss) (see note 5) | (843) | (1,043) | (3,008) |
Total comprehensive income/ (loss) for the period | 1,583 | (819) | (133) |
Earnings per share (see Note 6) | |||
Basic EPS from profit for the period | 5.1p | 1.7p | 0.9p |
Diluted EPS from profit for the period | 5.0p | 1.7p | 0.9p |
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025 (UNAUDITED)
Share capital £'000 | Share premium reserve £'000 | Foreign exchange reserve £'000 | Other reserves £'000 |
Retained earnings £'000 | Shares held in treasury £'000 |
Total £'000 | |
Balance at 31 Mar 2024 | 569 | 30,581 | (1,515) | (64) | 35,086 | (37) | 64,620 |
Dividends | - | - | - | - | (1,649) | - | (1,649) |
Share-based payment credit | - | - | - | - | 322 | - | 322 |
Transactions with owners in their capacity as owners |
- |
- |
- |
- | (1,327) |
- |
(1,327) |
Result for the period | - | - | - | - | 975 | - | 975 |
Foreign exchange | - | - | (1,794) | - | - | - | (1,794) |
Total comprehensive income | - | - | (1,794) | - | 975 | - | (819) |
Balance at 30 Sep 2024 | 569 | 30,581 | (3,309) | (64) | 34,734 | (37) | 62,474 |
Issue of new shares | 2,285 | (2,281) | - | - | - | - | 4 |
Dividends | - | - | - | - | (470) | - | (470) |
Share-based payment debit | - | - | - | - | (697) | - | (697) |
Transactions with owners in their capacity as owners | 2,285 | (2,281) | - | - | (1,167) | - | (1,163) |
Result for the period | - | - | - | - | (463) | - | (463) |
Other comprehensive income | - | - | - | - | 43 | - | 43 |
Foreign exchange | - | - | 1,106 | - | - | - | 1,106 |
Total comprehensive income | - | - | 1,106 | - | (420) | - | 686 |
Purchase of treasury shares | - | - | - | - | - | (501) | (501) |
Balance at 31 Mar 2025 | 2,854 | 28,300 | (2,203) | (64) | 33,147 | (538) | 61,496 |
Dividends | - | - | - | - | (948) | - | (948) |
Transfer of treasury shares to/(from) All Employee Share Plan | - | - | - | - | (233) | 233 | - |
Share-based payment credit | - | - | - | - | 110 | - | 110 |
Transactions with owners in their capacity as owners |
- |
- |
- |
- | (1,071) |
233 |
(838) |
Result for the period | - | - | - | - | 2,885 | - | 2,885 |
Foreign exchange | - | - | (1,302) | - | - | - | (1,302) |
Total comprehensive income | - | - | (1,302) | - | 2,885 | - | 1,583 |
Balance at 30 Sep 2025 | 2,854 | 28,300 | (3,505) | (64) | 34,961 | (305) | 62,241 |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2025
Unaudited as at 30 Sept 25 £'000 | Unaudited as at 30 Sept 24 £'000 | Audited as at 31 Mar 25 £'000 | |
Assets | |||
Non-current assets | |||
Intangible assets | 35,143 | 37,626 | 36,968 |
Property, plant and equipment | 5,710 | 4,594 | 5,487 |
Right-of-use lease assets | 5,443 | 3,717 | 6,075 |
Deferred tax asset | 512 | 605 | 1,458 |
Total non-current assets (see note 9) | 46,808 | 46,542 | 49,988 |
Current assets | |||
Inventories | 26,441 | 25,387 | 28,239 |
Trade and other receivables | 27,923 | 18,652 | 21,616 |
Corporation tax asset | 1,817 | 132 | 986 |
Cash and cash equivalents - available on demand | 5,773 | 8,352 | 3,513 |
Total current assets | 61,954 | 52,523 | 54,354 |
Total assets | 108,762 | 99,065 | 104,342 |
Liabilities | |||
Current liabilities | |||
Trade and other payables | (19,496) | (13,871) | (17,020) |
Deferred and contingent consideration - current | (206) | - | (181) |
Current borrowings | (1,777) | (7,764) | (8,634) |
Contract liabilities | (6,204) | (5,806) | (5,847) |
Corporation tax liabilities | (163) | - | (229) |
Right of use lease liabilities | (1,223) | (984) | (1,402) |
Provisions - current | (260) | (50) | (190) |
Total current liabilities | (29,329) | (28,475) | (33,503) |
Non-current liabilities | |||
Non-current borrowings | (10,669) | (2,587) | (1,935) |
Deferred and contingent consideration - non-current | (230) | - | (161) |
Provisions | (1,122) | (843) | (1,098) |
Deferred tax liability | (1,011) | (1,951) | (1,548) |
Right-of-use lease liabilities | (4,160) | (2,735) | (4,601) |
Total non-current liabilities | (17,192) | (8,116) | (9,343) |
Total liabilities | (46,521) | (36,591) | (42,846) |
Total net assets | 62,241 | 62,474 | 61,496 |
Share capital (see note 8) | 2,854 | 569 | 2,854 |
Share premium reserve | 28,300 | 30,581 | 28,300 |
Other reserves | (64) | (64) | (64) |
Foreign exchange reserve | (3,505) | (3,309) | (2,203) |
Retained earnings | 34,961 | 34,734 | 33,147 |
Shares held in treasury | (305) | (37) | (538) |
Total equity | 62,241 | 62,474 | 61,496 |
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
|
|
| |
Unaudited Six months to 30 Sept 25 £'000 | Unaudited Six months to 30 Sept 24 £'000 | Unaudited Year to 31 Mar 25 £'000 | |
Operating activities | |||
Profit before taxation | 3,848 | 1,206 | 320 |
Adjustments for: |
| ||
Property, plant and equipment depreciation and impairment | 774 | 657 | 1,407 |
Right-of-use asset depreciation | 543 | 541 | 1,114 |
Amortisation | 1,306 | 1,435 | 2,758 |
Impairment of intangible assets | - | - | 2,734 |
(Profit)/ Loss on disposal of property, plant and equipment | (12) | 12 | 56 |
Share-based payment expense/ (credit) | 110 | 322 | (375) |
Finance costs | 636 | 624 | 1,014 |
Increase in deferred contingent consideration | 94 | - | - |
Profit from operations before changes in working capital and provisions | 7,299 | 4,797 | 9,028 |
Decrease/ (Increase) in inventories | 1,431 | (687) | (2,712) |
(Increase)/ Decrease in trade and other receivables | (6,360) | 12,600 | 9,704 |
Increase/ (Decrease) in trade and other payables | 3,271 | (7,896) | (5,650) |
Increase in provisions | 95 | 22 | 26 |
Cash generated from operations | 5,736 | 8,836 | 10,396 |
Income taxes paid | (1,659) | (1,601) | (2,565) |
Income taxes recovered | 30 | 13 | 13 |
Net cash flows from operating activities | 4,107 | 7,248 | 7,844 |
Investing activities |
| ||
Purchase of property, plant and equipment | (1,101) | (1,152) | (2,292) |
Capitalised own costs and purchase of intangible assets | (505) | (486) | (1,202) |
Proceeds from sale of property, plant and equipment | 133 | 126 | 232 |
Payments for acquisition of subsidiaries net of cash acquired | - | - | (2,123) |
Net cash flows from investing activities | (1,473) | (1,512) | (5,385) |
Financing activities |
| ||
Repurchase of ordinary shares into treasury | - | - | (501) |
Borrowings drawn | 12,508 | - | 894 |
Borrowings repaid | (12,447) | (2,757) | (3,408) |
Payment obligations for right-of-use assets | (743) | (768) | (1,327) |
Interest paid | (429) | (571) | (1,044) |
Interest received | 48 | - | 138 |
Dividends paid to equity shareholders | (948) | (1,649) | (2,119) |
Net cash flows from financing activities | (2,011) | (5,745) | (7,367) |
Increase/ (Decrease) in cash and cash equivalents | 623 | (9) | (4,908) |
|
Unaudited as at 30 Sept 25 £'000 | Unaudited as at 30 Sept 24 £'000 | Audited as at 31 Mar 25 £'000 | |
Translational foreign exchange on opening cash | (93) | (84) | (24) |
Net increase in cash and cash equivalents | 623 | (9) | (4,908) |
Net cash and cash equivalents brought forward | 3,513 | 8,445 | 8,445 |
Net cash and cash equivalents carried forward | 4,043 | 8,352 | 3,513 |
Unaudited as at 30 Sept 25 £'000 | Unaudited as at 30 Sept 25 £'000 | Audited as at 31 Mar 25 £'000 | |
Represented by: | |||
Cash and cash equivalents - available on demand | 5,773 | 8,352 | 3,513 |
Cash and cash equivalents - overdraft facility | (1,730) | - | - |
Net cash and cash equivalents | 4,043 | 8,352 | 3,513 |
NOTES TO THE INTERIM REPORT
FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2025
1. Basis of preparation of interim financial information
General information
Solid State plc (the "Company") is a public company incorporated, domiciled and registered in England and Wales in the United Kingdom. The registered number is 00771335 and the registered address is: 2 Ravensbank Business Park, Hedera Road, Redditch B98 9EY.
The interim financial statements are unaudited and do not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2025, prepared in accordance with UK-adopted International Accounting Standards, have been filed with the Registrar of Companies. The Auditor's Report on these accounts was unqualified, did not include any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain any statements under section 498 of the Companies Act 2006.
Basis of preparation
These condensed interim financial statements for the six months ended 30 September 2025 have been prepared in accordance with IAS 34, "Interim financial reporting", as contained in UK-adopted International Accounting Standards.
The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2025, which have been prepared in accordance with UK-adopted International Accounting Standards.
The consolidated interim financial statements have been prepared in accordance with the recognition and measurement principles of UK-adopted International Accounting Standards expected to be effective for the year ending 31 March 2026.
Going concern
In assessing the going concern position of the Group for the Consolidated Financial Statements for the half year ended 30 September 2025, the Directors have considered the Group's cash flows, liquidity and business activities.
At 30 September 2025, the Group has net debt (excluding IFRS16) of £7.1m. At the Half Year total committed facilities are a £15.0m RCF. There are uncommitted facilities available of a £10.0m accordion, a base net multi-currency overdraft facility of £5.0m and the potential to access an additional gross £5m extension to the overdraft facility, subject to agreement with the bank, to cover very short-term spikes in working capital which may arise. At the period end £10.7m of RCF was drawn in addition to a £1.7m USD currency overdraft.
Based on the Group's forecasts, the Directors have adopted the going concern basis in preparing the Financial Statements. The Directors have made this assessment after consideration of the Group's cash flows and related assumptions and in accordance with the Guidance published by the UK Financial Reporting.
The Directors have taken account of the results to date, current expected demand, and mitigating actions that could be taken, together with an assessment of the liquidity headroom against the cash and bank facilities. The bank facilities are subject to financial covenants; therefore, in evaluating a stressed forecast, the Board only included the RCF in the headroom to the extent it is available within the covenants.
This financial modelling is prepared to 31 March 2027 and has been based on an extension of the reforecast guidance for FY25/26 reflecting the current trading performance. The Board has maintained significantly sensitised guidance and as such does not consider further sensitivities are needed to the model. The financial model assumes that revenue, margin and cash profit remain flat for the following twelve months which is well below the expectation as H1 25/26 has seen a significant improvement.
With no growth built into the Group EBITDA forecast, combined with the mitigating actions that are within the Group's control, the Group would fully comply with covenants and maintain sufficient liquidity to meet its liabilities as they fall due.
The Directors have concluded that the likelihood of a scenario whereby the covenant headroom is exhausted is remote and therefore there are no material uncertainties over the Group and Company's ability to continue as a going concern. Nevertheless, it is acknowledged that there are, potentially, material variations in the forecast level of future financial performance.
The Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the next 15 months; therefore, it is appropriate to adopt a going concern basis for the preparation of the financial statements. Accordingly, these financial statements do not include any adjustments to the carrying amount or classification of assets and liabilities that would result if the Group and Company were unable to continue as a going concern.
2. Accounting policies
The accounting policies are unchanged from the financial statements for the year ended 31 March 2025, other than as noted below.
Financial instruments
The carrying value of cash, trade and other receivables, other equity instruments, trade and other payables, and borrowings also represent their estimated fair values.
Additional disclosure of the basis of measurement and policies in respect of financial instruments are described on pages 109 to 114 of our 31 March 2025 Annual Report and remain unchanged at 30 September 2025.
Estimates
The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expense. Actual results may differ from these estimates.
In preparing these condensed interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended 31 March 2025.
Recent accounting developments
The accounting policies adopted are consistent with those of the previous financial year, and in preparing the interim financial statements, there were no standards, amendments or interpretations applied for the first time that had a material impact for the Group.
3. Principal risks and uncertainties
The principal risks and uncertainties impacting the Group are described on pages 44 to 47 of our 31 March 2025 Annual Report and remain unchanged at 30 September 2025.
The risks considered to impact the Group include: acquisitions, legislative environment and compliance, competition, product/technology change, supply chain interruption, destocking and cost inflation, retention of key employees, failure of, or malicious damage to, IT systems, natural disasters, and forecasting and financial liquidity.
4. Segmental information
Unaudited Six months to 30 Sept 25 £'000 | Unaudited Six months to 30 Sept 24 £'000 | Audited Year to 31 Mar 25 £'000 | |
Revenue | |||
Systems | 38,717 | 21,534 | 42,099 |
Power | 16,962 | 13,421 | 29,041 |
Components | 29,974 | 26,820 | 53,924 |
Group revenue | 85,653 | 61,775 | 125,064 |
5. Adjusted profit measures
Unaudited Six months to 30 Sept 25 £'000 | Unaudited Six months to 30 Sept 24 £'000 | Audited Year to 31 Mar 25 £'000 | |
Acquisition fair value adjustments, reorganisation and deal costs | - | 88 | 431 |
Impairment of Goodwill | - | - | 2,734 |
Amortisation of acquisition intangibles | 940 | 903 | 1,909 |
Share-based payments | 112 | 322 | (374) |
Imputed interest on deferred consideration unwind | 21 | - | 18 |
Current and deferred taxation effect | (230) | (270) | (1,303) |
Non-recurring deferred tax credit in USA | - | - | (364) |
Movement of deferred tax assets in other comprehensive income | - | - | (43) |
Total adjustments to other comprehensive income | 843 | 1,043 | 3,008 |
Gross profit | 26,540 | 19,189 | 39,327 |
Adjusted gross profit | 26,540 | 19,189 | 39,327 |
Operating profit | 4,526 | 1,830 | 1,334 |
Adjusted operating profit | 5,578 | 3,143 | 6,034 |
Operating profit margin percentage | 5.3% | 3.0% | 1.1% |
Adjusted operating profit margin percentage | 6.5% | 5.1% | 4.8% |
Profit before tax | 3,848 | 1,206 | 320 |
Adjusted profit before tax | 4,921 | 2,519 | 5,038 |
Profit after tax | 2,885 | 975 | 512 |
Adjusted profit after tax | 3,728 | 2,018 | 3,563 |
Other comprehensive income/(loss) | 1,583 | (819) | (133) |
Adjusted other comprehensive income | 2,426 | 224 | 2,875 |
6. Earnings per share
The earnings per share is based on the following:
Unaudited Six months to 30 Sept 25 £'000 | (Restated1) Unaudited Six months to 30 Sept 24 £'000 |
Unaudited Six months to 30 Sept 24 £'000 | Audited Year to 31 Mar 25 £'000 | |
Adjusted earnings post tax attributable to equity holders of the parent | 3,728 | 2,018 | 2,018 | 3,563 |
Earnings post tax attributable to equity holders of the parent | 2,885 | 975 | 975 | 512 |
Weighted average number of shares | 56,848,425 | 56,957,828 | 11,388,853 | 56,826,189 |
Diluted weighted average number of shares | 57,726,379 | 57,835,613 | 11,564,000 | 57,487,575 |
EPS |
| |||
Basic EPS from profit for the period | 5.1p | 1.7p | 8.6p | 0.9p |
Diluted EPS from profit for the period | 5.0p | 1.7p | 8.4p | 0.9p |
Adjusted EPS |
| |||
Adjusted basic EPS from profit for the period | 6.6p | 3.5p | 17.7p | 6.3p |
Adjusted diluted EPS from profit for the period | 6.5p | 3.5p | 17.5p | 6.2p |
1 The H1 24/25 disclosed basic EPS and diluted EPS of 8.6p and 8.4p have been restated assuming the October 2025 4 for 1 bonus share issue occurred on 1 October 2023 to enable comparability.
7. Dividends
Dividends paid during the period from 1 September 2024 to 30 September 2025 were as follows:
27 September 2024 | Final dividend year ended 31 March 2024 | 14.5p per share |
14 February 2025 | Interim dividend year ended 31 March 2025 | 0.83p per share |
30 September 2025 | Final dividend year ended 31 March 2025 | 1.67p per share |
The Directors are intending to pay an interim dividend for the year ending 31 March 2026 on 13 February 2026 of 0.92p per share. This dividend has not been accrued at 30 September 2025.
Unaudited Six months as at 30 Sept 25 £'000 | Unaudited Six months as at 30 Sept 24 £'000 | Audited Year as at 31 Mar 25 £'000 | |
Allotted issued and fully paid | |||
Ordinary 5p shares | 2,854 | 569 | 2,854 |
8. Share capital
Unaudited Six months as at 30 Sept 25 | Unaudited Six months as at 30 Sept 24 | Audited Year as at 31 Mar 25 | |
Allotted issued and fully paid | |||
Number of ordinary 5p shares | 57,081,720 | 11,376,644 | 57,081,720 |
The ordinary shares carry no right to fixed income, the holders are entitled to receive dividends as declared and are entitled to one vote per share at shareholder meetings.
Full details of movements in reserves are set out in the consolidated statement of changes in equity.
The following describes the nature and purpose of each reserve within owners' equity.
Reserve | Description and purpose |
Share premium | Amount subscribed for share capital in excess of nominal value. |
Other reserves | Amounts transferred from share capital on redemption of issued shares. Settlement value with non-controlling interests in excess of net asset carrying value |
Retained earnings | Cumulative net gains and losses recognised in the consolidated statement of comprehensive income. |
Shares held in treasury | Shares held by the Group for future staff share plan awards. |
Foreign exchange | Foreign exchange translation differences arising from the translation of the financial statements of foreign operations. |
Non-controlling interest | Equity attributable to non-controlling shareholders. |
9. Non-current assets
Unaudited Six months as at 30 Sept 25 £'000 | Unaudited Six months as at 30 Sept 24 £'000 | Audited Year as at 31 Mar 25 £'000 | |
Goodwill | 26,080 | 28,246 | 26,832 |
Acquisition intangibles | 6,617 | 7,411 | 7,773 |
Research and development | 1,726 | 1,341 | 1,632 |
Patents and Trademarks | 204 | - | 156 |
Software | 516 | 628 | 575 |
Intangible assets | 35,143 | 37,626 | 36,968 |
Property plant and equipment | 5,710 | 4,594 | 5,487 |
Right-of-use assets | 5,443 | 3,717 | 6,075 |
Deferred tax asset | 512 | 605 | 1,458 |
Total non-current assets | 46,808 | 46,542 | 49,988 |
10. Net debt
Unaudited Six months as at 30 Sept 25 £'000 | Unaudited Six months as at 30 Sept 24 £'000 | Audited Year as at 31 Mar 25 £'000 | |
Cash and cash equivalents - overdraft | (1,730) | - | - |
Bank borrowing due within one year | (47) | (7,764) | (8,634) |
Bank borrowing due after one year | (10,669) | (2,587) | (1,935) |
Total borrowings | (12,446) | (10,351) | (10,569) |
Deferred consideration on acquisitions - current | (206) | - | (181) |
Deferred consideration on acquisitions - non-current | (230) | - | (161) |
Cash and cash equivalents - on demand | 5,773 | 8,352 | 3,513 |
Net debt | (7,109) | (1,999) | (7,398) |
Having refinanced on 18 May 2025, the Group has increased its committed multi-currency Revolving Credit Facility ("RCF") to £15.0m. The £15.0m RCF is committed until May 2028 with an option to extend by 2 years and bears variable interest based on a margin over currency appropriate base rates. There are also uncommitted facilities including an accordion of £10.0m, a base multi-currency net overdraft facility of £5m and the Group has the potential to access an additional gross multi-currency overdraft facility of £5.0m, subject to agreement with the bank, to cover very short-term spikes in working capital which may arise.
Lease liabilities are excluded from the Group's definition of net debt and a separate roll-forward of lease liabilities will be presented in the full-year report to the year ending 31 March 2026.
The Group's new banking facilities are subject to two financial covenants, being: leverage, and interest cover. These covenants were met at all measurement points throughout the period.
11. Related party transactions
During the period, the Group entered into a transaction with a fully owned subsidiary of Filtronic PLC, an entity where Peter Magowan is also a non-executive director. The transaction related to the sale of electronic components totalling £0.01m (H1 2025: £0.0m). At 30 September 2025 no receivables were outstanding. The transaction was conducted on normal arm's length commercial terms.
There were no other related party transactions during the period that are considered material to the Group's interim results.
12. Post balance sheet events
After the balance sheet date, the Group announced an initial order valued at $10.8m under Project CAIN, a major defence programme for a UK Government end user. In addition, several major orders have been received in H2 by the Power division in relation to the supply of specialist power packs for applications across unmanned aerial vehicles (UAVs), land-based robotic systems, portable medical devices, industrial applications and the energy sector totalling $7.4m.
There were no other identified post balance sheet events that are considered material to disclose in the Group's interim results.
The statement will be available to download on the Company's website: www.solidstateplc.com.
Related Shares:
Solid State