Solid State, a London-listed electronic-component company, announced that its revenue and adjusted pretax profit have risen for the first half of fiscal 2024. The company expects both figures to be slightly ahead of current consensus for the full year.
Revenue Growth Driven by Security and Defense Contracts
For the six months ended September 30, Solid State anticipates reporting revenue of approximately £88 million ($106.7 million), compared to £59.4 million the previous year. This growth can be attributed to the delivery of over £23 million worth of products from security and defense contracts.
Adjusted Pretax Profit Shows Significant Improvement
Solid State also expects its adjusted pretax profit, which excludes exceptional and other one-off items, to reach at least £7 million, up from £4.2 million in the same period last year.
Positive Outlook for the Full Year
Looking ahead, the company's compiled revenue consensus for the fiscal year ending March 31 is currently £147.3 million, with an adjusted pretax profit consensus of £11.9 million.
Strong Cash Generation Contributes to Debt Repayment
Solid State acknowledges that strong cash generation from its trading activities is enabling the settlement of deferred consideration related to previous acquisitions and the reduction of the group's borrowings.
Following the announcement, shares in Solid State rose by 75 pence (6.9%) to 1,165 pence at 0832 GMT.
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