Solid State PLC on Wednesday said that, despite a ‘particularly challenging’ trading environment, its performance in the first half of its financial year remains in line with market expectations.

The Worcestershire-based electronics supplier for industry and defence anticipates continued market difficulties in the second half of financial 2025 but its maintained its guidance.

For the six months that ending September 30, revenue is estimated at £62 million, bringing adjusted profit before tax of around £2.5 million. This marks a decline from a ‘particularly strong’ first half in the prior year, when the company reported revenue of £88 million and adjusted pretax profit of £7.3 million, driven by £23.4 million in defence and security orders.

Solid State noted that these sizeable defence contracts gave a significant boost to last year‘s results but were not expected to reflect typical annual trading levels for the company.

Shares in Solid State were down 11% at 217.13 pence each in London on Wednesday morning.

Chief Executive Officer Gary Marsh said: ‘Whilst trading in the first half has been particularly challenging and we expect to see this continuing through the second half in some of our markets, our most recent order intake was stronger than any month this year and we believe there are further opportunities in security and defence which can deliver a much stronger second half.’

The company began the second half with an order book of £77 million, with around 65% of these orders anticipated to be billable within the current financial year.

Looking ahead, Solid State expects that defence sector orders will be secured and fulfilled in the second half, supporting its target to meet market expectations. The recent acquisition of Q-Par Antennas USA LLC for up to $2 million is expected to enhance Solid State’s US presence and improve mid-term operating margins.

Commenting on political uncertainty in both the UK and US, Solid State said it has resulted in delays to a number of programmes and weaker order intake in the first half. Recently the company has seen some improvement in the US, but demand from the US continues to be ‘sluggish’.

Solid State said it is trading in line with market expectations for financial 2025 and 2026. It cited these as revenue of £143.9 million in financial 2025 and £153.0 million in financial 2026, with adjusted profit before tax of £10.1 million and £11.5 million, respectively.

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