Shares in Solid State PLC (AIM:SOLI) rose 9% to 210.15p after the group said it expected to exceed market expectations for its new financial year, buoyed by demand from the defence and AI sectors.
The specialist component supplier and design-in manufacturer pointed to a good start to the year, with current trading in line with the board's expectations.
It signalled that analysts at Cavendish, Berenberg and Zeus would likely upgrade their forecasts following the results.
Solid State said it entered the new financial year in its strongest position for several years.
Chairman Nigel Rogers cited buoyant demand from AI-driven data centres and the defence and security market, the latter accounting for around 47% of group revenue.
He flagged that geopolitical uncertainty and AI data centre demand had created supply chain challenges, bringing both risks and opportunities.
The outlook accompanied a strong set of full-year figures for the 12 months to 31 March 2026.
Revenue rose 23.2% to £154.1 million, while adjusted operating profit climbed 60% to £9.6 million.
Adjusted pre-tax profit jumped 72% to £8.6 million, and the adjusted operating margin widened by 140 basis points to 6.2%.
On a reported basis, pre-tax profit surged to £5.8 million from just £0.3 million a year earlier.
Growth was led by the Systems division, where revenue rose 47.8% to £62.5 million, helped by a £23.3 million communications programme recognised after prior-year delays.
The Power division grew 15.6% to £31.8 million on contract wins and improving conditions, while Components rose 8.1% to £59.8 million.
Group gross margins improved 200 basis points to 33.5%.
Net debt narrowed to £4.2 million from £7.4 million, and cash generated from operations rose 29.8% to £13.5 million.
The full-year dividend was lifted 10% to 2.75p.
Solid State's open order book stood at £102.4 million at 31 May, broadly flat year on year, though the prior figure included £19.0 million of NSPA orders.
The company highlighted a $10.8 million communications order for Project CAIN for the British Army, an initial shipment of which was completed in the first quarter.
Alongside the results, Solid State said Victor Chavez would become non-executive chairman with immediate effect.
Rogers will support a transition until the end of the calendar year.
