Solid State Supplies - Final Results

RNS No 9192j
SOLID STATE SUPPLIES PLC
16 June 1999


Preliminary announcement of results for the year ended 31st March 1999

Chairman's Statement
This is my first report as Chairman following the stepping down of my
predecessor, Gordon Comben on health grounds.  I am pleased that Gordon will
remain a Director of the Company and would like to put on record the Board's
thanks for his contribution and wish him well for the future.

Results
The audited profit before tax of the company was #303,000 (1998: #106,000) on
a turnover of #6,100,000 (1998: #5,309,000).

Trading Review
The year ended 31st March 1999 proved to be a period of continued economic
uncertainty.  Whilst volume demand for components over this period has grown,
the continued effect of falling prices has had a negative impact on sales
values.  To illustrate this point, the company has in fact shipped 47% more
product this year in order to achieve the 14% increase in turnover reported
above.

In order to have visibility of some benchmark figures for our industry, we are
members of the Association of Franchised Distributors of Electronic Components
(AFDEC) and contribute to the statistics produced by this body.  They do in
fact represent 80% of the industry and encompass a wide spread of distributors
from the large groups to the smaller specialists.  The annual report from
AFDEC reported that the total distribution sales for the period under review
fell by 6.8%.  The increase of 14% achieved by the company over this same
period illustrates that we have been able to obtain a larger share of the
available market.

We were also able to increase our profit before tax by some 186% even allowing
for the #31,000 redundancy payments made as a result of the previously
announced loss of the Arizona Microchip franchise.  Whilst this loss will have
an effect on our total sales volumes in this coming year, the steps we have
taken in reducing overheads will minimise the effect on our profitability. 
The AFDEC forecast for 1999 indicates an anticipated reduction in sales of
11%.  However, as has been shown by this year's results, because we have such
a small share of the total available market (less than 1%), continued efforts
on the development of new markets and applications for our products should
enable us to prosper even under these difficult conditions.

Our infrastructure including assurance of millennium compatibility of our
computer systems means that we are in a position to handle and benefit from
any increase in business that we are able to secure in the coming year.

A reduction of approximately #450,000 in stock over the year generated a cash
inflow and resulted in an improvement in the stock turn ratio from 2.1 to 3.3.
 This trend is continuing over the early part of the current financial year.

Dividends
The directors are recommending a final dividend of 1.5p per share which,
together with the interim dividend, makes a total for the year of 2p per
share.  This compares with 1p per share last year.  The final dividend will be
paid on 16th July to shareholders on the register at the close of business on
2nd July.

Outlook
In spite of the anticipated poor market conditions, we feel confident that we
can continue to expand sales of our current franchise lines.  We will
nevertheless consider any opportunities for further franchises or suitable
acquisitions which are presented to us.

Conclusion
It is very pleasing to be able to announce the progress the company has made
and, on behalf of the Board, I would like to express my thanks to all our
staff for the hard work that has been required to achieve these figures.

We feel that the company is well positioned to continue to make progress over
the coming year and to take advantage of any upturn in the market as and when
it arises.

William G Marsh
Chairman
16th June 1999

PROFIT AND LOSS ACCOUNT
For the year ended 31st March 1999
                                       1999                  1998

                                       #           #         #          #
Turnover                                   6,099,790            5,309,378
Cost of sales                             (4,333,227)          (3,721,450)
                                           ---------            ---------
GROSS PROFIT                               1,766,563            1,587,928
Selling expenses and
  distribution costs          (1,006,815)           (1,043,753)
Administrative expenses         (451,789)             (431,691)
                               ---------             ---------

                                          (1,458,604)          (1,475,444)
                                           ---------            ---------

OPERATING PROFIT                             307,959              112,484
Other income                                  17,117               11,129
Interest payable                             (21,707)             (17,773)
                                           ---------            ---------
PROFIT ON ORDINARY ACTIVITIES 
BEFORE TAXATION                              303,369              105,840
Tax on profit on ordinary activities         (77,712)             (26,708)
                                           ---------            ---------
PROFIT ON ORDINARY ACTIVITIES
AFTER TAXATION                               225,657               79,132
Dividends - Equity                          (125,000)             (62,500)
                                           ---------            ---------
RETAINED PROFIT FOR THE YEAR                 100,657               16,632
                                           ---------            ---------
EARNINGS PER SHARE
Basic                                           3.6p                 1.3p


All amounts relate to continuing activities. 

There were no recognised gains or losses other than the profit for the year as
stated above

BALANCE SHEET
As at 31st March 1999

                                       1999                  1998 
                                       #           #         #          #
FIXED ASSETS                
Tangible assets                              273,561              194,157
Investments                                   76,694              153,487
                                           ---------            ---------
                
                                             350,255              347,644
CURRENT ASSETS                
Stocks                         1,300,241             1,748,602    
Debtors                        1,379,313             1,362,885    
Cash at bank and in hand         111,258                 1,077    
                               ---------             ---------
                               2,790,812             3,112,564    

CREDITORS:  amounts falling 
due within one year            1,190,239             1,606,129  
                               ---------             ---------
  
NET CURRENT ASSETS                         1,600,573            1,506,435
                                           ---------            ---------
TOTAL ASSETS LESS CURRENT LIABILITIES      1,950,828            1,854,079
                
CREDITORS: amounts falling due 
after more than one year                           -                3,908
                                           ---------            ---------
                                           1,950,828            1,850,171
                                           ---------            ---------

CAPITAL AND RESERVES                
Called up share capital                      312,500             312,500
Share premium account                        756,980             756,980
Profit and loss account                      881,348             780,691
                                           ---------           ---------
SHAREHOLDERS' FUNDS - EQUITY               1,950,828           1,850,171
                                           ---------           ---------
             
The financial statements were approved by the Board on 16th June 1999.


W.G. Marsh
Director

Notes

1. The financial information is derived from the Company's audited statutory
accounts for the years ended 31st March 1999 and 31st March 1998.  The
auditors' reports were unqualified and did not contain a statement under
Section 237(2) or (3) of the Companies Act 1985.  The statutory accounts for
1998 have been filed with the Registrar of Companies and the 1999 accounts
will be filed following the Annual General Meeting.

2. Earnings per share for each year have been based on the profit on ordinary
activities after taxation divided by the weighted average number of ordinary
shares in issue during the year of 6,250,000 (1998: 6,250,000).

3. The Report and Accounts for the year ended 31st March 1999 are being sent
to shareholders shortly.


END

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