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:
£92.18M
Payout Frequency: Semi-Annual
Solid State Dividend Analysis and Summary
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.
Read more
Solid State Annual Dividend Yield - 1.53%
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 (163p)
= 1.53%
Solid State Dividend History
| 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 |
|
Solid State Dividend Calculator
Solid State Dividend Growth
| Dividend Growth (1Y) |
-30.56%
|
| Dividend CAGR (5Y) |
0.71%
|
| Years of Growth |
–
|
| Payout Ratio |
58.55%
|
| Buyback Yield |
1.12%
|
| Shareholder Yield |
2.71%
|
| P/E Ratio (TTM) | 38.56 |
|---|
| Forward P/E | 16.27 |
|---|
| P/FCF | 37.44 |
|---|
| Earnings Yield | 2.63% |
|---|
| FCF Yield | 2.67% |
|---|
| ROE | 3.88% |
|---|
| ROCE | 8.62% |
|---|
| Profit Margin | 1.63% |
|---|
| Operating Margin | 4.6% |
|---|
| Gross Margin | 31.34% |
|---|