StockMarketWire.com - Computer and power component supplier Solid State hiked its dividend 28% after it booked a 5% rise in annual profit, owing to stronger margins that offset weaker sales.

Pre-tax profit for the year through March increased to £4.2 million, up from £4.0 million year-on-year, even as revenue fell 1.6% to £66.3 million.

Solid State's operating margin expanded by 40 basis points to 6.5%.

It's adjusted pre-tax profit rose 15% to £5.4 million and its adjusted operating margin expanded 110 basis points to 8.3%.

The company upped its dividend to 16p per share, up from 12.5p year-on-year.

'I am pleased to report that Solid State has delivered another year of record profits and a further step in achieving its medium term target of doubling adjusted earnings per share, despite a challenging market environment and the pandemic,' chief executive Gary Marsh said.

'The board is confident that the achievements of the last year and the post period end growth in open orders are a very good foundation going into the current financial year.'

'The experience of our team, focus on structural growth markets and the balance sheet strength set Solid State aside from many in our sector, giving the Directors confidence in the mid-term prospects.'


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