News Column

Solid State Raises Dividend As Acquisitions Boost Full Year Profit

July 7, 2014

Hana Stewart-Smith

LONDON (Alliance News) - Solid State PLC Monday expressed optimism over its future prospects as it raised its dividend on an improved profit in the year to end-March, boosted by two acquisitions during the year.

The electronic components company proposed a total dividend of 8.5 pence, up 6.3% from 8.0 pence the year earlier.

It posted a pretax profit of GBP2.2 million, up from GBP1.8 million, as revenue rose to GBP32.1 million from GBP31.5 million, boosted by the acquisitions of Q-Par Angus Ltd and Electronic Components Ltd during the year and improved gross margins.

Solid State saw gross margins of 29.2% during the year, up from 26.1%.

In the company's specialist electronic equipment business, Steatite, profit margin improved as it continued to gain market share in new sectors and secured new supply partners.

Q-Par, which the company acquired last May, exceed expectations as it was integrated and restructured under new management. The company said Q-Par also enhanced margin due to its offering of high-end technical services.

In its component distribution segment, Solid State Supplies, the company saw a strong performance boosted by the integration of Electronic Components. Solid State introduce its own-brand products towards the end of the year, and expects to see limited revenues and gross margins above its average during the coming year.

The integration of Electronic Components allows the business to compete for larger contracts than it had previously, Solid State said.

The company said that it will continue to pro-actively look for further acquisition opportunities.

"Our strong pipeline of new designs across a wide range of products and markets enable us to look with confidence to the year ahead," the company said in a statement.

Shares in Solid State were trading up 2.5% at 399.85 pence shortly after market open Monday.

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Source: Alliance News

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