Solid State – up nearly 60%, with a growing Order Book, but are the shares now too high at 192p?

Mark Watson-Mitchell - 26.06.2026

Since I featured Solid State (LON:SOLI) way back in December 2024, with its shares then at 123p, they have been up to 215p, a near 75% gain in that period.

Next Tuesday, 30^th June, the £109m-capitalised group, which is a specialist value added component supplier and design-in manufacturer of computing, power, and communications products, will be declaring its Final Results for the year to end-March.

They could well show around a 21% increase in sales, while its pre-tax profits could have leapt 58%, lifting its earnings by 66% per share.

But will the Management Comment about current year and future prospects help to propel the shares higher?

On Monday of this week they hit 215p, they are now just 192p – so where will they go after the results?

The Business

Solid State, which is based in Redditch, employs over 425 people around the world.

The business has seven production facilities in the UK and one in the USA.

In total, including all office locations, the group operates from 13 national and international sites.

The group, which was established in 1971 and admitted to AIM in June 1996, has grown organically and by acquisition - having made five acquisitions in the last five years.

It is a value-added component supplier and design-in manufacturer of computing, power, and communications products.

The company supplies commercial, industrial, and military markets with electronic components, assemblies, and manufactured systems designed for use in critical applications.

It has a core focus on industrial and ruggedised computing, battery power solutions, antennas, secure radio systems, imaging technologies, and electronic components and displays.

The business operates through three divisions: Components, Systems, and Power.

The Systems division has capabilities in the design, manufacture, supply and through life support of high-performance systems.

Its Components division's business provides products and services in three areas: own-brand manufactured components, franchised components, and the provision of value-added services such as sourcing and obsolescence management.

The Power division is focused on battery systems, and caters to the robotics, drones, and naval maritime sectors.

Latest Update

On Wednesday, 8^th April, the group announced a strong year-end trading performance for its year to end-March, with revenue expected to exceed £150m and adjusted profit before tax also surpassing market expectations.

All three divisions, Components, Power, and Systems, contributed to this positive result, driven by new design wins, strong demand in autonomous technology and defence, and robust communications product sales.

At the trading year-end, the company's open Order Book had increased to approximately £106.5m up from £97.0m in November 2025, primarily due to significant order intake in the Power division.

Despite potential supply chain challenges arising from AI adoption and geopolitical instability, Solid State remained well-positioned to meet demand for sovereign technology and capability.

The majority of the open Order Book is expected to be delivered over the next 16 months, subject to supply chain availability.

Recently lead times have started to extend significantly for certain components due to the demand arising from the adoption of AI and the impact of geopolitical instability.

However, the group is pro-actively engaged with customers to manage any potential impact going forward.

Management Comment

Chairman Nigel Rogers stated that:

"It is very pleasing to be upgrading expectations for the year ended 31 March 2026 and reporting positive momentum in the open orderbook.

Against a backdrop of heightened global tensions, governments are prioritising defence and security.

While the context is challenging, it is leading to increased demand for our technology and capabilities from both new and existing customers.

We are approaching this with a strong sense of responsibility, focused on supporting our customers effectively while maintaining strict oversight on risk, governance, and compliance.

We are also mindful of the macroeconomic effect of regional conflicts, and the resulting uncertainties on supply side constraints which are as yet unclear. 

Despite these uncertainties, Solid State is very well placed to fulfil the demand for sovereign technology and capability both in the UK and the US, and benefits from the resilience that is derived from our exposure to other structural growth markets."

The Equity

There are some 56.73m shares in issue.

The larger holders include BGF Investment Management (10.48%), Aberdeen Investment Management (6.39%), Gordon Comben (6.39%), Schroder Investment Management (5.67%), Canaccord Genuity Wealth (5.08%), Oaktree Capital Management (Investment Company) (5.07%), Barbara Marsh (4.86%), Hargreaves Lansdown Fund Managers (4.83%), Gary Marsh (2.34%), and Maven Capital Partners (1.79%).

Broker’s Views

Four analysts follow the company closely, the consensus average Target Price is 249p, the Highest 253p, while the Lowest is 245p.

In early April, Berenberg put out a Buy note on the group, fixing a Target Price of 245p on its shares.

Analysts John Cummins and Charlie Cullen, at Zeus Capital, have estimates out for the end-March 2026 year to have seen £152.2m (£125.1m) revenues, with £7.9m (£5.0m) pre-tax profits, lifting earnings to 10.2p (6.2p) and paying a 2.8p (2.5p) per share dividend.

For the current year, they see just £153.0m sales, £8.0m profits, 10.3p earnings and 2.9p dividend.

Analysts David Buxton and Edward Stacey, at Cavendish Capital Markets, rate the shares as a Buy, with the 253p Target Price.

They look for 2026 to have shown £15.2m sales, £7.8m profits, 10.3p earnings and paying a 2.8p per share dividend.

For the 2027 year, they see £151.4m revenue, £8.0m profit, 10.5p earnings and a dividend of 3.0p per share.

Dan Ridsdale, analyst at Edison Investment Research, states that fundamentally the company’s outlook is positive, supported by its exposure to defence and secure communications, together with an increasing Order Book.

My View

On the face of it, despite a growing Order Book, the group does seem to be treading water currently.

In the last year its shares have traded between 138p, reached last November, then again late March this year, and up to 215p, peaking at that level on Monday of this week.

They have since slipped back to 192p.

Depending on next Tuesday’s accompanying statement, I would prefer to stand back and let the market point the way after a few hours of the results announcement.

It has shown a good rise since my feature at 123p in December 2024, but I would suggest waiting for reasoned reaction to the results before taking them higher.