Solid State – with its AGM next Tuesday, now could be the right time to take another positive look at this defence and communications sector supplier, shares 192p
Mark Watson-Mitchell - 10.09.2026
Next Tuesday, 15th September, Solid State (LON:SOLI) will be holding its AGM to approve its 2026 Report & Accounts.
The £109m-capitalised group is a specialist value-added component supplier and design-in manufacturer of computing, power and communications products.
It supplies the commercial, industrial and military markets with durable components, assemblies and manufactured units for use in specialist and harsh environments.
The group’s shares, now at 192p, have shown a good advance from 137p in early April this year – however, I consider that there is still a lot more to go for in buying the shares.
The Business
Solid State, which is based in Redditch, employs over 475 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 the AIM market 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 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.
Final Results For 2026
On Monday, 29th June, the group reported a strong financial year to end-March 2026, with revenue increasing by 23.2% to £154.1m and adjusted operating profit rising by 60.0% to £9.6m, leading to adjusted diluted earnings per share of 11.0p, up from 6.2p in the prior year.
The company also saw its net debt decrease by 43.24% to £4.2m, and the proposed full-year dividend increased by 10.0% to 2.75p per share.
Performance was driven by robust demand in the defence and security sector, which accounted for 47% of revenue, and significant growth in the Systems division, up 47.8% to £62.5m.
The group stated that it anticipates exceeding market expectations for the current fiscal year.
Management Comment
At that time retiring Chairman Nigel Rogers stated that:
"The group has reported a strong performance in FY25/26, with all three divisions delivering year-on-year improvements, supported notably by AI-driven demand and the defence and security market.
Solid State is well positioned to unlock untapped organic growth and to explore opportunities in adjacent structurally growing markets through a sharpening of customer and market focus, as well as an accelerated pace of investment to strengthen operational depth and scale.
Recent geopolitical uncertainty combined with Ai data centre demand has created supply chain challenges, bringing both risks and opportunities.
The company's strong customer relationships position it well to navigate these conditions and capitalise on opportunities.
Solid State enters FY26/27 in its strongest position for several years and has had a good start to the new financial year.
With current trading in line with the Board's expectations, we expect to exceed current market expectations for FY26/27.”
The Equity
There are some 57.08m 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%), Oaktree Capital Management (Investment Company) (5.07%), Canaccord Genuity Wealth (5.00%), Barbara Marsh (4.86%), Hargreaves Lansdown Fund Managers (4.83%), Gary Marsh (2.34%), Maven Capital Partners (1.79%), Liontrust Investment Partners LLP (1.26%) and Corient Investment Management Ltd (0.70%).
Broker’s Views
Market expectations are for the current year to end-March 2027 to show revenues of £156.0m and an adjusted pre-tax profit of £8.1m, with earnings of 10.50p and paying out a dividend of 2.95p per share.
For the coming year estimates suggest £161.5m in revenues, £9.9m profits, 12.90p earnings and 3.22p dividend.
Four analysts follow the company closely, the consensus average Target Price is 249p, the Highest 253p, while the Lowest is 245p.
In late June, Berenberg Bank put out a Buy note on the group, fixing a Target Price of 275p on its shares.
Analysts Andy Hanson, Robin Byde and Charlie Cullen, at Zeus Capital, have estimates out for the end-March 2027 year to see £157.5m revenues, with £9.0m pre-tax profits, lifting earnings to 11.6p and paying a 3.0p per share dividend.
For the coming 2028 year they see £161.6m sales, £9.8m profits, 12.7p earnings and 3.2p dividend.
The analysts comment that with headroom for further progress on margins in due course and alignment with a number of growth markets, they see potential for further upside beyond near-term forecasts.
Analysts David Buxton and Edward Stacey, at Cavendish Capital Markets, rate the shares as a Buy, with a 301p Target Price.
For the 2027 year, they see £155.0m revenue, £8.8m profit, 11.5p earnings and a dividend of 3.0p per share.
For 2028, they look for £159.0m sales, £9.7m profit, 12.7p earnings and a 3.2p per share dividend.
My View
The shares, now 192p, have already shown a good rise since my feature at 123p in December 2024, but I consider that there is still a great deal of upside on offer.
(Profile 11.12.24 @ 123p set a Target Price of 150p*)
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