StockMarketWire.com - Computing and power component manufacturer Solid State said it expected to post a full-year profit head of market expectations, while forecasting a mixed impact from the Covid-19 crisis on its business.

Pre-tax profit for the year through March 2020 was expected at about £4.2m, which the company said was about 10% above the current consensus forecast.

Revenue was seen coming in close to the consensus forecast of £68m.

Net cash at 31 March was around £3.0m 'as a result of continued strong cash generation and proactive cash management with clients and suppliers'

Solid State said that on the plus side, it had been designated by some customers as a critical supplier under government guidance, to industries including medical, food retail, security, transportation and defence.

On the weaker side, ,however, it said it was experiencing softness in the demand for batteries for the commercial aerospace market and in computing products.

'Separately, owing to the fall in oil prices, we are currently experiencing lower levels of orders for battery packs from the oil and gas industry,' it added.

Costing cutting measures adopted by the company included the furloughing of some staff, salary freeze and delayed payment of bonuses.




Story provided by StockMarketWire.com