Acquisition

RNS Number : 2580Q

Solid State PLC

17 October 2011

 



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17 October 2011

Solid State plc

("Solid State" or the "Company")

Acquisition of the trade and assets of Blazepoint Ltd

Solid State plc (AIM:SSP), the AIM listed supplier of battery power solutions, specialist electronic components and industrial/ruggedized computers, is pleased to announce the acquisition of the trade and assets of Blazepoint Ltd (Blazepoint) from its administrators for a consideration of £200,000.  The consideration will be satisfied in cash financed from the Company's existing resources.

Blazepoint is an established supplier of ruggedized computer and hand held devices to the commercial and military markets worldwide, including an innovative range of ruggedized peripheral products.  Blazepoint has a reputation for adapting Commercial-Off-The-Shelf (COTS) equipment and Military-Off-The-Shelf (MOTS) equipment, by transforming products to work beyond the original manufacturer's specification.  Blazepoint trades under the 'ndura rugged', 'Nautiz' and 'ALGIZ' brands.  Further information on Blazepoint and its products can be found at www.blazepoint.co.uk.

Unaudited accounts for the 12 months ended 30 June 2011 for Blazepoint Ltd show turnover of £3.1m, pre tax profit of £25,000.  At the date of acquisition the book value of the assets being acquired was £819,000.  It is anticipated that the costs associated with integrating Blazepoint will have a modest impact on group performance in the current financial year however that the acquisition is expected to be earnings enhancing in the year ending 31 March 2013.  The gross profit margin on product sales at Blazepoint is typically superior to the industry average and consequently is expected to underpin and enhance the Solid State group gross profit margin post full integration.

Commenting on the acquisition, Gary Marsh, Chief Executive of Solid State, said:

"We have known and competed against the Blazepoint business for many years.  The unification of our two businesses under the brand 'Steatite Blazepoint' creates the UK market leader in ruggedized computers and handheld devices and substantially strengthens Solid State's presence in the transportation sector. 

"Our strategy has been to acquire, integrate and develop underperforming businesses.  We have demonstrated this most recently with the successful acquisition and turnaround of Rugged Systems Ltd.  We consider Blazepoint to be a very similar opportunity with similar upside potential.

"It is our belief that the efficiencies that we can bring to bear on the Blazepoint business plus the additional cross selling opportunities will result in a significant increase in future profitability for Solid State."

For further information please contact:

Solid State plc                                    

Gary Marsh - Chief Executive               01892 836 836

Peter Haining - Chairman                      01435 865 353

WH Ireland                                        0117 945 3470

(Nominated Adviser)

Mike Coe/Marc Davies

Winningtons

(Financial PR)                                       020 3176 4722

Tom Cooper/Paul Vann                         0797 122 1972

                                                            [e-mail]

Notes to Editors:

Solid State plc (SSP) is a leading value added group of companies providing specialist distribution, design-in and manufacturing services to those acquiring batteries, electronic components and industrial/rugged computing products for use in harsh environments. 

Serving niche markets in oil & gas production, medical, construction, security, military and field maintenance, Solid State acts as both a distributor to OEMs and bespoke manufacturer of specialist units to clients with complex requirements.

Headquartered in Paddock Wood in Kent, Solid State employs 120 staff across 4 sites.  Solid State operates through three main divisions: Solid State Supplies, Steatite and Steatite Blazepoint.

Solid State was established in 1971 and admitted to AIM in June 1996.

 

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