Solid State Share Discussion Threads

[glasshalfull] 15/7/2015 17:20

Orderly sale by retired Ex-Directors that was above initial estimates such was the demand from institutional investors.

I've now updated the header to reflect WH Ireland's forecasts on the back of 2015 results.

---

In July 2015 they announced record results with diluted EPS of 33.9p which exceeded the upgraded forecasts of 29.7p by 14%.

The company has now delivered earnings growth over the last 5-years and we are witnessing a material uplift to the dividend as indicated below.

Solid States Earnings Record

(EPS listed below on a fully diluted basis)

•​31/03/10 - 6.6p - £530k PBT (Dividend 3.0p)

•​31/03/11 - 15.0p (+127%) - £1.243m PBT (Dividend 6.0p)

•​31/03/12 - 19.2p (+28%) - £1.60m PBT (Dividend 7.25p)

•​31/03/13 - 21.1p (+10%) - £1.87m PBT (Dividend 8p)

•​31/03/14 - 25.2p (+19%) - £2.15m PBT (Dividend 8.5p)

•​31/03/15 - 33.9p (+34%) - £3m PBT (Dividend 12p)


Forecasts (WH Ireland - 07/07/2015)

•​31/03/16 - 56p (+65%) - £5.3m PBT (Div 20p)

•​31/03/17 - 60.9p (+9%) - £5.77m PBT (Dividend 22p)


Regards,
GHF

[hydrus] 15/7/2015 16:56

Ha punished quite severely. Nothing wrong with ex Directors selling but perhaps a bit foolish to dress it up with an RNS title that doesn't refer to the selling. The price of the sale doesn't have me concerned as always likely to need to be competitive when selling such a large holding. Oh well nothing more to see here, onwards and upwards I expect

[wjccghcc] 15/7/2015 13:18

See RNS. Retired founders selling 15% of the company to institutions.

[fz13] 15/7/2015 13:09

This is not the usual post news sell off, it's almost 20% of the mcap of selling

[dasv] 07/7/2015 10:20

thanks investorschampion

"Broker forecasts The house broker has left march numbers 2016 unchanged, expecting an approximate 60% uplift in both revenue and PBT supported by the first material contribution (£15m) from MoJ with forecast eps up over 48% to 56p. For 2017 forecasts are now for only modest growth in revenue and earnings with estimates for adjusted pre-tax profit of £5.77m and earnings per share of 60.9p. Clearly this assumes little progress, which seems unlikely given the recent track record"

[wjccghcc] 07/7/2015 07:43

Yup. Added some at 838p

[hydrus] 07/7/2015 07:40

Good entry point this morning after typical results sell off

[glasshalfull] 07/7/2015 07:03

Excellent results as forecast.

From WH Ireland,

"Today’s FY15 results are marginally ahead of our numbers post April’s trading update and represent another year of impressive growth (+14% at the revenue line feeding a +32% hike in adjusted EPS). This rounds off arguably the most successful year in Solid’s 19-year history as a public company, one which saw the award of a £34m contract with the Ministry of Justice to provide electronic offender tagging hardware over a three year period.
​
The current year will benefit from the first material revenue from MoJ in addition to a first-time contribution from Ginsbury Electronics (acquired April) and some decent organic growth at both Manufacturing and Distribution.
​
We leave current year numbers unchanged, expecting a substantial uplift (~60%) in both revenue and PBT. Our newly-introduced FY17 forecasts project mid-single digit organic growth together with a same-again £15m revenue contribution from MoJ. This yields adjusted PBT of £5.77m and EPS of 60.9p and a 22p/share dividend."

SOLI remains a core holding for me...and will for some time to come.

Regards,
GHF

[kalkanite] 03/7/2015 07:39

Nice, hitting a new high with results due out on Tuesday.

[dasv] 02/7/2015 14:16

cheers Metier9

[metier9] 02/7/2015 13:40

Tipped in Shares which is irritating as I was contemplating dumping my ISA allowance in here for a top up.

[anisha] 20/5/2015 21:17

rhia share has gone up 25% in one month and the bulletin board is dead
3 postings since april 8th
last rns was very upbeat earnings up from 6.6p tp 25 p in 4 years wow

[metier9] 12/5/2015 20:11

The couple of years before last where June.

[glaws2] 12/5/2015 13:32

Steadily creeping back up. AS far as I am aware there is no news due until the release of the results - early July last year.

[dasv] 02/4/2015 08:57

cheers Glasshalfull

Glad I bought the dip now!

[glaws2] 02/4/2015 07:54

Thanks GHF

[glasshalfull] 02/4/2015 07:40

Congrats to company on an excellent year.

Per WH Ireland,

"This mornings pre- close suggests SOLI is on track to at least meet our FY15 PBT number (March year end) albeit revenue will be slightly lower due to the exit from certain high volume, low margin business. At the EPS level, this would represent y-o-y growth of c. 10% and rounds off a hugely successful year for SOLI, one which saw the award of a £34m electronic tagging contract with the MoJ. SOLI has also announced the £2.1m acquisition this morning of Ginsbury Electronics, a specialist in display components monitors, panels, signage and power components to the commercial, retail, industrial and military markets which will sit well in Solid State Supplies.

As a result, we put through a modest 3% upgrade in our FY16 EPS figure from 54.5p to 56.0p and, consequently, a 3% increase in our target price from 763p to 784p. This upgrade, coupled with recent share price weakness, means that the shares can be picked up on 11.3x current year earnings, too low in our view with the MoJ business to start to contribute in earnest this year."

Kind regards,
GHF

[glaws2] 02/4/2015 07:06

Positive news release both on trading and acquisition.

[stegrego] 27/3/2015 16:37

Bought a few at 615. Looking to buy on weakness.

[metier9] 26/3/2015 15:14

They will also have a nice chunk of cash from the MOJ contract to invest in the business. Hargreaves Hale doesn't have a 15% holding just for the kicks.

[henryatkin] 26/3/2015 14:57

Steg....Surely the hope must be that over the next couple of years other contracts will be secured. Additionally, if the contract has run smoothly they may start the re-tendering process as preferred bidder.

[dasv] 26/3/2015 14:34

henryatkin - thanks for post. I was wondering if there was a fundamental reason - but with this level of liquidity, the trailing stop thesis even for a small number of traders could I guess have an impact.

I think the stock is cheap on a GARP basis.