Shares in Solid State (AIM: SOLI) have increased by 5.85% to 181p after the specialist value-added supplier and design-in manufacturer of computing, power, and communications products announced a US $26.2 million (c.£19.7 million) contract win. Subsidiary Steatite Ltd has secured a follow-on order under Project CAIN, a major modernisation effort for the British Army providing a new tactical communications system.
For the follow-on deal, Steatite will supply a range of secure, ruggedised systems, including MPU5 radios and Wave Relay Technology from the secure mobile ad-hoc networking technology firm Persistent Systems, supporting advanced operational capabilities in challenging environments. Solid State said that the order represents a significant milestone in Steatite’s ongoing strategy to deliver cutting-edge, mission-critical technologies to the UK’s armed forces and security community. The firm added that the project further strengthens Steatite’s position as a trusted supplier to the UK Ministry of Defence and reinforces its reputation for innovation and reliability in the delivery of secure technology solutions.
Delivery of these systems is scheduled for the first half of 2027, with CEO John Macmichael, saying “This order further underpins our existing guidance for FY26/27 and FY27/28 and gives us increased confidence as we look forward to 2027.”
Get our research notes free, the day they're published
In-depth coverage of UK small caps and junior miners. Email only, unsubscribe any time.
The Business
Solid State was founded in 1971 and admitted to AIM in June 1996. Based in Redditch, the firm is a value-added electronics group supplying industrial and defence markets with durable components, assemblies and manufactured systems for use in critical applications, with a particular emphasis on harsh operational environments.
The firm operates through three divisions (Systems, Power and Components), and serves a range of industries, with particular skills and expertise relevant to defence, energy production, aerospace, environmental, oceanographic, industrial, robotics, medical, life sciences, and transportation. Brands include Steatite, Solsta, Custom Power, Pacer, Active Silicon, Gateway, Durakool, Ndura, and Q-Par.
Solid State employs over 475 people around the world, has seven production facilities in the UK and one in the USA, and operates from 13 national and international sites.
Growth has been substantial over the past decade, with revenues growing from £40 million in FY2017 to £154.1 million in FY2026, with adjusted pre-tax profits going from £3.1 million to £8.6 million over the same period. Expansion has been organic and by acquisition, with three acquisitions made in the last five years.
Solid State ten-year share price chart
Comment
This is a significant deal for Solid State and comes following an initial order received by Steatite in October last year under Project CAIN, valued at US $10.8 million. The follow-on order is large, representing c.13% of last year’s total annual revenues. Following the share price increase, Solid State is now capitalised at £103 million.
Investors will now be looking forward to a Capital Markets Day hosted by the company on Wednesday 25th November where the CEO and Chair will be presenting key takeaways around the firm’s strategies and ambitions to accelerate growth; in its most recent annual report, the firm said that it had a goal of delivering at least 20p of adjusted earnings per share by 2030, up from 11p in 2026. We would also expect a half year trading update around that time, as per previous years.
Sign up to receive our full investment research notes on small cap growth companies, as soon as they are published.
Disclosures
Solid State is not a corporate client of Optimo Research Ltd.
Disclaimers
This article, and all articles on the Optimo Research blog, are for information purposes only. Our blog articles do not constitute an investment recommendation or personal advice. Nothing in our blog articles should be construed as an offer or the solicitation of an offer to buy or sell securities by us and, as we have no knowledge of your individual situation and circumstances, you should not make any investment decision without consulting a fully qualified financial adviser. Your capital is at risk by investing in the financial instruments issued by the companies discussed. For full disclosures, disclaimers and risk warnings click here.