Solid State

Website: Solid State
Index: AIM
EPIC: SOLI
Supersector: Industrial Goods and Services
Sector: Electronic and Electrical Equipment
Subsector: Electrical Components and Equipment
Market Cap: £87.83M
Payout Frequency: Semi-Annual

Next Solid State Dividend

Solid State next goes ex-dividend on 22/01/2026. This will be the Interim dividend for 2026.

The dividend per share amount is 0.9200p (GBP) and the payment date is 13/02/2026.

Dividend declaration (interim)

Dividend per share: 0.92p (interim)
Ex-dividend date: 22/01/2026
Record date: 23/01/2026
Payment date: 13/02/2026
Year-on-year growth vs prior interim: +10.8% (H1 2024/25 interim: 0.83p)
Recent context: final dividend for FY 2024/25 of 1.67p was paid on 30/09/2025 (post Oct-2024 bonus share issue)
Dividend cover (H1 basis): adjusted diluted EPS 6.5p implies c.7x cover; statutory diluted EPS 5.0p implies c.5.4x cover

Dividend sustainability and growth

Coverage is strong on H1 earnings, suggesting ample headroom to fund the interim payout.
Trading momentum is positive: revenue +38.6% (headline), adjusted PBT +96%, adjusted operating margin up to 6.5%.
Cash generation solid though lower year-on-year: adjusted operating cash conversion 103%; operating cash flow £4.1m, reflecting working-capital investment for late-period shipments.
Balance sheet capacity is adequate: net debt £7.1m, with expected FY leverage around 0.4x; new £15m committed RCF in place.
Order visibility improving: open orderbook rebuilt from £87.3m (30 Sep) to £97.0m (30 Nov), and guidance to meet FY25/26 consensus maintained.
Growth trajectory: interim DPS up 10.8% supports a progressive policy, but management continues to prioritise investment in facilities and capability; dividends likely to remain modest but steadily rising.

Support from financial performance and capital allocation

Underlying performance (ex large comms contract and FX) up 3.6% shows core resilience amid industrial softness.
Capital allocation balanced: ongoing capex (~£1.6m in H1), targeted growth investments (integrated systems, RF antennas, Power division capability), and continued dividends.
Refinancing completed: £15m committed multi-currency RCF, plus uncommitted accordion/overdraft for short-term working-capital spikes—supports both investment and distributions.
Net debt increased modestly due to working capital; management expects some unwind in H2 and net debt to fall broadly in line with expectations.

Structural changes and developments relevant to future dividends

Leadership: passing of long-serving CEO; Interim CEO appointed; Victor Chavez CBE to become Deputy Chairman from 01/01/2026 with a plan to assume Chair during 2026—governance transition to watch.
Operational separation of the Power division under a global VP/GM to scale capability (not a demerger). Investment ahead of revenue may dilute margins near term but supports mid-term growth.
Refinanced banking facilities enhance liquidity flexibility.
Active M&A pipeline remains part of strategy; potential future bolt-ons could influence capital allocation between growth and dividends.
Historical capital structure change: 4-for-1 bonus share issue (Oct 2024)—relevant for per-share comparatives.

Risks and flags for dividend stability

Revenue lumpiness from large defence/communications contracts; timing can drive working-capital swings and cash conversion variability.
Sector mix concentration: growing reliance on defence and security; industrial markets remain subdued.
Tariff and FX headwinds (USD strength, US tariffs) modestly diluting margins and could affect orders/pricing.
Execution risk as integrated systems facility ramps; currently margin-dilutive until utilisation increases.
Management transition risk following CEO’s death; mitigated by succession planning and Board strengthening.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
23/01/2025	14/02/2025	Interim	0.83p	GBX
11/09/2025	30/09/2025	Final	1.67p	GBX

Total (Annual Dividends Per Share): 2.50p

Dividend Yield = Annual Dividends Per Share (2.50p) ÷ Share Price (149.8p) = 1.67%

Ex Dividend Date	Payment Date	Type	Amount	Currency
22/01/2026	13/02/2026	Interim	0.9200p	GBX
11/09/2025	30/09/2025	Final	1.67p	GBX
23/01/2025	14/02/2025	Interim	0.83p	GBX
05/09/2024	27/09/2024	Final	14.50p	GBX
25/01/2024	16/02/2024	Interim	7.00p	GBX
07/09/2023	29/09/2023	Final	13.50p	GBX
26/01/2023	17/02/2023	Interim	6.50p	GBX
01/09/2022	05/10/2022	Final	13.25p	GBX
27/01/2022	18/02/2022	Interim	6.25p	GBX
02/09/2021	24/09/2021	Final	10.75p	GBX
28/01/2021	19/02/2021	Interim	5.25p	GBX
03/09/2020	23/09/2020	Final	7.25p	GBX
23/01/2020	14/02/2020	Interim	5.25p	GBX
29/08/2019	19/09/2019	Final	8.30p	GBX
24/01/2019	15/02/2019	Interim	4.20p	GBX
30/08/2018	20/09/2018	Final	8.00p	GBX
25/01/2018	16/02/2018	Interim	4.00p	GBX
31/08/2017	22/09/2017	Final	8.00p	GBX
22/12/2016	20/01/2017	Interim	4.00p	GBX
01/09/2016	23/09/2016	Final	8.00p	GBX
07/01/2016	26/02/2016	Interim	4.00p	GBX
03/09/2015	29/09/2015	Final	8.00p	GBX
11/12/2014	07/01/2015	Interim	4.00p	GBX
06/08/2014	02/09/2014	Final	5.75p	GBX
08/01/2014	31/01/2014	Interim	2.75p	GBX

Year	Interim	Final	Currency	Total	Change
2024	7.000	14.500	GBX	21.500	7.500
2023	6.500	13.500	GBX	20.000	2.560
2022	6.250	13.250	GBX	19.500	21.870
2021	5.250	10.750	GBX	16.000	28.000
2020	5.250	7.250	GBX	12.500	0.000
2019	4.200	8.300	GBX	12.500	4.160
2018	4.000	8.000	GBX	12.000	50.000
2017		8.000	GBX	8.000	-50.000
2016	8.000	8.000	GBX	16.000	100.000
2015		8.000	GBX	8.000	-36.000
2014	6.750	5.750	GBX	12.500

Number of Shares:

Payment	Paid	Amount
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