Solid State plc (LSE:SOLI) has reported strong full-year results, with revenue increasing 23.2% to £154.1 million and adjusted profit before tax climbing 72% to £8.6 million. Growth was driven primarily by sustained demand from defence and security customers, which accounted for around 47% of group revenue. All three operating divisions recorded year-on-year growth, while gross margin improved by 200 basis points to 33.5%. The company also reported stronger returns on equity and invested capital, increased its dividend by 10%, reduced net debt and maintained an order book of more than £100 million despite receiving no new orders from the NATO Support and Procurement Agency (NSPA) during the period.
The group continued to invest in expanding its capabilities, including the opening of a new Integrated Computer Systems facility and a collaboration between Custom Power and Volklec to develop UK sovereign energy solutions for the defence sector. Solid State also secured a major communications contract with the British Army under Project CAIN and reported growing opportunities linked to AI-powered data centres and rising demand from non-NATO defence customers. Management said investment across FY26 and FY27 will be phased to support future growth and indicated that current trading is tracking ahead of market expectations. The company also announced the appointment of Victor Chavez CBE as non-executive chairman to lead the next stage of its strategic development.
Solid State’s investment outlook is supported by a solid financial position, positive corporate developments and continued contract momentum. However, profitability and cash flow remain areas to monitor, while valuation appears demanding based on a relatively high price-to-earnings multiple. Technical indicators currently point to positive short-term momentum, although investors will be looking for sustained earnings growth to justify the company’s valuation.
More about Solid State
Solid State plc is a UK-based electronics company supplying value-added components, systems and power solutions to customers operating in defence, industrial and other mission-critical sectors. Through its Systems, Power and Components divisions, the group provides rugged computing platforms, advanced communications equipment, battery technologies and specialist electronic components for use in demanding environments across defence, aerospace, energy, medical and industrial markets.
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