Shares in Solid State PLC (AIM:SOLI) dropped by 10% following a trading update that highlighted current challenges, including political uncertainty in the UK and US, which has delayed key defence and security programs.
For the six months ending September 30, the group reported £62 million in revenue and £2.5 million in adjusted pre-tax profits, a decrease from the previous year’s £88 million revenue and £7.3 million profits.
Despite a weaker first half, Solid State has a £77 million order book, with expectations for a stronger second half as defence orders are finalised.
The company said it is managing costs in slower areas while investing in growth sectors, including a new integrated systems production facility and recent acquisitions to boost US sales.
Margins remain solid, and management is optimistic about future order intake and mid-term growth in core sectors.
In early afternoon trading, the stock was down 25p at 220p.