Solid State Share Discussion Threads

[envirovision] 09/1/2014 14:52

no comment on the 2001 purchase here ?

[jakleeds] 04/11/2013 07:14

Nice contract win.

[norbus] 02/8/2013 09:41

It is hardly pleasant to go round trashing others , someone said do not do unto others. I do not mean to persist as he does, but thought his co investors ought to know what kind of slippery customer you have

[norbus] 02/8/2013 08:12

Electronica 2 Aug'13 - 07:50 - 6473 of 6473 0 0

"Storage should be a vital component."

Yes it should - and the Royal Academy of Engineering is advising the government that liquid air is the best route to it ..............

hxxp://www.raeng.org.uk/news/releases/shownews.htm?NewsID=847

[m.t.glass] 31/7/2013 16:05

The rule change allowing this to be bought within an ISA comes in on Monday morning. The 5.25p per share divi is available to anyone buying ahead of the market close on Tuesday.

Obviously it is only of benefit if the share price stays up and subsequently goes up enough to recoup the capital outlay or make a gain (after whatever dip happens on Wednesday, if any).

[m.t.glass] 24/7/2013 09:10

2 weeks away from XD for a worthwhile 5.25p dividend. That's 2.2% of current share price.

And I presume that this is one of the AIM stocks that will become eligible for inclusion in a sharedealing ISA account from two days before then, when the ISA rules change.

[tech] 09/7/2013 15:35

Could be start of next leg up

[electronica] 18/6/2013 07:46

m.t.glass

With Q-Par coming through this year with at least £2m @ 10% net (pre-tax margin) we should see FY14 eps at 25p+.

With past growth, a great acquisitions record & a better balanced prospect SSP ought to be able to command a forward P/E of 12 sometime in 2013. So I'm looking for 300p this year & will patiently wait & collect the 8p dive (approx 3.6% yield) while I wait.

[m.t.glass] 18/6/2013 07:28

this morning:

"..These results highlight the positive momentum at Solid State, delivering our third consecutive year of record results. In recognition of this performance and future prospects the Board is recommending a 10% increase in the annual dividend..."

[sammy_smith] 07/5/2013 10:32

Listen to an interview with Solid State - Acquisition & trading update

[callumross] 02/5/2013 10:52

Yeo. looks like another good acquisition by this company which does seem to have a strong management team, unlike may AIM companies

[electronica] 02/5/2013 09:09

Acquire a great looking business with growth prospects for a P/E of approx 4.

Brilliant stroke by SSP. It looks like it could even be earnings enhancing this year.

[jamielein] 10/12/2012 09:06

A little underwhelming.

My key concerns:

Cash flow doesn't seem great
Debt seems high (and large increase in overdraft)

[electronica] 10/12/2012 08:56

Nice steady as you go results statement.

Where will next year's growth come from? - SSP appear to have the potential to get a 20% CAGR from the actions they have taken in all 3 major business lines.

Then there is always the probability of further quickly earnings enhancing acquisitions - SSP have had a good track record here over the last few years.

[stegrego] 09/8/2012 19:23

Buy Solid State at 221p

Say the experts at UKMicrocap.com

Since being tipped on UKMicrocap.com at the end of last year shares in Solid State (SSP) have gained 73%! But with positive trading momentum being seen and a desire to add more complementary businesses, the team believe that this specialist electronics business is still a BUY.

UK-Microcap.com offers 20 hot new tips like this each year on microcap stocks which have strong potential to double or more in value. The team of specialist small cap analysts will be releasing their latest two investment recommendations next Monday. To access these in-depth reports and get regular updates on their progress, join UKMicrocap.com now.

The Business

Solid State is a specialist electronics business with particular expertise in batteries and ruggedised industrial computing products used in harsh environments; its operations comprise sales, marketing distribution and manufacturing. Having joined AIM in 1996, the firm has subsequently grown organically and through acquisitions - most notably, Blazepoint (October 2011) Rugged Systems (April 2010), RZ Pressure Systems (2007), Wordsworth Technology (2005) and Steatite (2002), acquired for an average exit multiple of 6 times earnings. Solid State operates in the UK through its two principal trading subsidiaries, Solid State Supplies Ltd and Steatite Ltd, although products are also marketed through a number of industry-leading brands including Wordsworth (displays, networking, embedded systems), Rugged Systems and RZ Pressure (batteries). Each company has considerable operating autonomy, which is important in enabling it to respond to customers' bespoke needs.

Distribution (Solid State Supplies) - Operating as a franchised distributor, Solid State has several advantages over non-franchised distributors: for example, preferential pricing and prioritisation in times of short supply. The company distributes products for 20 manufacturers including CML Microsystems, Energy Micro (low-energy microcontrollers), Force Technologies (optoelectronics, logic and memory) and Ixys (semiconductors and RF). The market for specialist technical electronic components is growing rapidly and is expected to outpace growth in the wider electronics market.

Manufacturing (Steatite) - Operating from a designated high security classified facility in Redditch in the West Midlands, the company is able to carry out sensitive work for end customers in the defence sector such as the MoD. It also supplies a range of organisations in the oil & gas, satellite, telecoms and government sectors, mainly with hard-wearing components that can withstand extreme conditions, with an emphasis on customisation. Following the acquisition of Rugged Systems, the company also became one of Europe's leading suppliers of rugged PCs, laptops, displays and communications solutions.

Solid State differentiates itself through offering a comprehensive service tailored to the client's specific needs, which often sees the company offering an ongoing technical know-how and electronics design skills to customers over a prolonged period. This extra level of value-added service sets the firm apart from distributors such as Premier Farnell (PFL) or Electrocomponents (ECM).

Financials

Results for the 2012 financial year were slightly ahead of market expectations and a record for the business. Sales were up by an impressive 22% at £25.87 million for the year as the underlying business saw continuing growth and as the 2010 acquisition of Rugged Systems and October 2011 acquisition of ruggedised computer and hand held devices supplier Blazepoint made contributions. The core business, excluding costs of £223,000 associated with the Blazepoint acquisition, saw underlying revenues up by 20% and profits increase by 34%. Group pre-tax profits were up by 29% at £1.6 million and were bang in line with market forecasts. Earnings of 1.5p per share, up 24% , were slightly ahead of forecasts however, with the company increasing the total dividend by 21% to 7.25p per share.

On the balance sheet, net assets were 30% higher at £5.1 million at the period end, with net gearing being up from 40% at 47% and net debt standing at £2.39 million. The debt position remains very comfortable, with net finance costs being covered almost 25 times by operating profits.

Solid State added that it was confident for the current financial year and beyond, with the order book as at 31st March being £10.5 million,, up from £8.4 million 12 months earlier. The group also confirmed it is looking for further complimentary acquisitions. In a more recent AGM statement the company confirmed the outlook remained positive, stating it, "has made a confident start to the current financial year." and "...it remains optimistic over the prospects for the Company and looks forward to updating the market in due course."


Risk Warning: The value of investments can go down as well as up. Past performance is no guarantee of future success. Investing in equities can lose you part or all of your capital. The tips given here are of necessity, general. They cannot relate to the individual circumstances of investors. Anyone considering following the recommendations contained here should seek independent advice. Investments in smaller company shares, by their nature, can be relatively illiquid and thus hard to trade. And that makes such investments more of a high risk than larger company shares.
Bull Points

- Excellent record of successful earnings-enhancing acquisitions at compelling multiples.
- In-house specialist expertise is a key differentiator from conventional distributors and suppliers.
- Exposure to resilient end markets - oil & gas, environmental and niche military.

Bear Points

- Lacks the scale of some of its larger competitors.
- Loss of franchise status could impact customer perceptions.

Evaluation

With these results Solid State has continued to show the market that it can successfully deliver, and even beat, expectations. At the time of our original tip in November last year the market was looking for £1.6 million of profits for the 2013 financial year, so in effect the company is one year ahead of where we expected it to be at this stage.

At the current price the shares trade on a multiple of around 10 times forecast earnings for this year, however we see the potential for earnings upgrades given the positive trading momentum and desire to add more complementary businesses. A yield of 3.6% is also on offer for 2013, a level which remains attractive. For such a quality business, which has grown revenues by 141% and pre-tax profits by 280% over the past five years, we believe that the current rating does not look expensive. Buy.

Concentrating on the smaller stocks overlooked by almost all mass market brokers and newspapers, UK-Microcap.com provides 20 new tips a year and frequent updates on the only class of stocks with true multibagger potential.

To join UKMicrocap.com now for regular tips and updates, click here or call Georgina on 01624 641343

[electronica] 09/6/2012 10:02

tech

Prelims are released on 21st June. We've already been guided to expect a significantly increased divi & a good result based on chunky battery pack shipments in H2 2012.

We also know that HI 2013 shipments & profits are going to be significantly boosted by the recent £3.5m rugged computer contract win.

So short term I see SSP flying through 350p with some stabilisation around 400-450p in the first half of calendar 2013 as "lunpy" contracts become normal & we get a decent rerating based on a probable 20-25% ptp CAGR forecast over the next 3-4 years.

I'm holding onto lots of shares bought at an average of just under 70p in the 2nd half of 2010. I've already got all my outlay back & am just enjoying a good divi while looking at an excellent (extra) growth prospect.

[tech] 08/6/2012 10:07

Good solid growth prospects, breaking out nicely

[js8106455] 29/5/2012 10:27

Came across this link with John Lavery the MD of Solid State Plc.

Its worth a click:

[backwoodsman] 08/5/2012 10:53

Thanks, Electronica.
I note the RNS this morning.
My holding is modest and I don't feel like top slicing as I think there must me some sort of end game (bearing in mind previous postings here).

[electronica] 04/5/2012 16:49

I took profits on just over 4,000 today (from 46p a little over 2 years ago) in order to get the gain booked.

Still a long term fan of SSP & will probably top-up if it slips much lower - to add to a pretty good holding. My 12 month target for SSP remains at 300p+ & the divi/yield is excellent.

[backwoodsman] 04/5/2012 15:37

Whose selling?