Solid State LON:SOLI, the Redditch-based electronic components distribution and manufacturing company has announced that it has secured, through its subsidiary Custom Power USA, two “significant” contracts with a combined value of USD5.1m (GBP3.8m) from two prime defence contractors to supply battery packs.
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As previously reported, Solid State operates through two divisions, its Systems Division, which encompasses the operating companies Steatite, Active Silicon and Custom Power; and its Components Division which includes the operational units Solsta (formerly Solid State Supplies) and Pacer. The company has been in business for 53-years, has been a component of AIM for 27-years and employs around 400 people. Its subsidiary Steatite, which Solid State acquired in 2002, was founded in 1938.
Close working relationship with industry
The new contracts are through Solid State’s Systems Division, which through its American subsidiary worked at length with the US defence contractors to integrate the company’s products into the contractors’ equipment. Solid State will provide ruggedised battery packs designed for use in harsh environments and deployed in marine and aerospace applications.
Solid State said that deliveries will begin early next year, and the contracts will be fulfilled by the end of 2025. The company said that both programmes have the potential for multi-year framework agreements.
Solid State announced record revenues of GBP163.3m and record profits of GBP12.2m in its last set of results for the year to end-March 2025, and these contracts have helped maintain the electronic component’s forward momentum.
Solid State playing to Custom Power’s key strengths
Matthew Richards, managing director of subsidiary Custom Power said in a statement: “Whilst diverse in operating environments, these two contracts respectively required solutions that optimised size, weight and power for operation in harsh environments, which are key strengths for Custom Power.”
The contract wins come on the back of news of the GBP1.4m acquisition of Cheshire-based Gateway Electronic Components, a private firm that specialises in ferrite and magnetic components and solutions. Solid State already manufactures its own brand of machined ferrite products, so Gateway’s range will complement the products that Solid State already sells and Gateway will join Solsta. The AIM-listed manufacturer will pay a net asset cash adjustment of GBP100,000 on completion and GBP500,000 final settlement.
Solid State’s shares opened trading on 8th October at 253.4p, up 11.6% over one-year and down 10.5% over the year-to-date with its shares ranging between 202p and 308p over a 52-week period. The company has a market cap of GBP145m and is expecting to announce a trading update for the six months to end-September next month.