Final Results

Solid State PLC
12 July 2007


                                SOLID STATE PLC

          PRELIMINARY ANNOUNCEMENT FOR THE YEAR ENDED 31 MARCH 2007


CHAIRMAN'S STATEMENT


Results

The audited profit before tax of the Group was £465,000 (2006: loss of £79,000)
on a turnover of £12,370,000 (2006: £10,452,000). The basic earning per share
amounted to 6.0p (2006: a loss of 0.7p).


Dividends

The Directors recommend that a final dividend of 2p per share be paid. An
interim dividend of 1p per share was paid in January 2007 giving a total
dividend in respect of the year of 3p per share (2006: 0.5p per share). The
final dividend will be paid on 6 August 2007 to shareholders on the register at
the close of business on 20 July 2007.


Trading Review

The key performance indicators measured by management are sales and bookings.


Solid State Supplies

The continuing difficulties in the distribution market and the need to overcome
the loss of three significant lines as reported previously are reflected in a
fall in turnover from £3.999m (05/06) to £3.720m (06/07), a fall of 7.0%.
However bookings rose from £3.599m (05/06) to £3.902m (06/07) a rise of 8.4%.
Further franchises were added in the second half of our financial year as we
work to strengthen our product offering in our key Aerospace and Defence,
Connectivity and Industrial markets. We will continue our programme of reducing
costs where considered appropriate.


Steatite and Wordsworth

Sales in Steatite were up 5.2% over the previous year while Wordsworth recorded
a 26.4% increase in sales giving a combined increase of 14.8%. Bookings in
Steatite were up 1.5% over the previous year. Bookings for Wordsworth are not
available before January 2006 and therefore no year on year comparison can be
made. Bookings in the period 1st January to 31st March 2007 amounted to £1.306m
compared with £818,000 for the corresponding period in 2006.

The focus remains to follow the business strategy of demand creation for value
added products, whilst introducing new products and franchises in Battery
Technologies and Industrial Computing Platforms


Summary

The results for the year, which for the first time include a full year of the
results of Wordsworth Technology Limited which was acquired in August 2005, show
a considerable improvement in the Group's trading position compared with the
previous year. However trading conditions remain difficult particularly in
general electronic component distribution where business is lost through
manufacturers moving their operations offshore to secure lower operating costs
and a less oppressive regulatory regime.


Renewal of authority to purchase the Company's shares

Last year, resolutions were passed at the Annual General Meeting to give the
Company the authority to purchase its own Ordinary shares on the Stock Exchange.
This authority would expire after a period of eighteen months from the passing
of the resolution. In order to avoid this authority expiring during the next
year and the need to call an extraordinary general meeting to renew the
authority, a resolution to renew the authority will be proposed at the Annual
General Meeting.

Under the terms of the resolution to be proposed at the Annual General Meeting,
the maximum number of shares which may be purchased is 923,476 shares
representing 15% of the issued Ordinary share capital of the Company. The
minimum price payable by the Company for its Ordinary shares will be 35p and the
maximum price will be 150p. The authority will automatically expire after a
period of eighteen months from the passing of the resolution unless renewed.

It is not the Directors' current intention to exercise the power to purchase the
Company's Ordinary shares but they believe that under certain circumstances it
would be in the Company's best interests to do so.

Your Directors consider that the resolution to be proposed at the meeting is in
the best interests of the Company and its shareholders. They unanimously
recommend that all Ordinary shareholders vote in favour of the resolution at the
Annual General Meeting as they intend to do in respect of their beneficial
holdings amounting to 1,796,177 Ordinary shares, representing 29.18% of the
Company's issued Ordinary share capital.


Conclusion

I would like to thank my fellow Directors and the staff in general for their
continued support.


Peter Haining
Chairman
11 July 2007



MANAGING DIRECTOR'S REVIEW

In April 2006, the electronic components business was transferred from the
holding company to a newly formed subsidiary company, Solid State Supplies
Limited. At the same time the holding company was re-named Solid State PLC
giving a more balanced structure with the holding company being non trading and
with three active trading subsidiaries.

The directors regard the profit before tax of £465,000 as being a very pleasing
result after the difficulties of the previous year and in particular the fourth
quarter of the year under review was a very successful one.

The difficulties experienced in the electronic component distribution business
to which reference was made last year continued to be a factor in the UK market
during the year under review. The action taken to promote this part of the
Group's activities has met with some success, with a 2% increase in turnover and
9% increase in bookings. Several new franchises and lines have been added and
John MacMichael, who joined as a business development manager during last year,
has now been appointed as a director of Solid State Supplies Limited with
responsibility for commercial development of the distribution business. Action
is being taken to reduce overheads at Solid State Supplies and the directors are
confident that this division will return to profitability during the new
financial year.

At Redditch, Steatite and Wordsworth Technology have had a successful year
operating in the jointly run premises and contributed 73% of Group turnover
compared with just over 60% in the previous year.

The introduction of the Restriction of Hazardous Substances regulations in July
2006 was handled smoothly at both locations and without any significant impact
in the Group's results.

The Group invested £89,000 in research and development activities at Redditch to
design new systems based products.

The Group holds or issues financial instruments to finance its operations.
Operations are financed by a mixture of retained profits, bank borrowings,
invoice discounting facilities and long term loans. Working capital requirements
are met principally out of floating rate overdraft and retained profits. In
addition, various financial instruments such as trade debtors and trade
creditors arise directly from the Group's operations.

The Group is mainly exposed to credit risk from credit sales. It is Group policy
to assess the credit risk of new customers and to factor the information from
these credit ratings into future dealings with the customers. At the balance
sheet date there were no significant concentrations of credit risk. The maximum
exposure to credit risk is represented by the carrying amount of each financial
asset in the balance sheet. The directors monitor the liquidity and cash flow
risk of the Group carefully. The Group has an agreed overdraft limit with the
Group's bankers to help manage fluctuations in cash flow. Cash flow is monitored
by the directors on a regular basis and appropriate action is taken where
additional funds are required.

There has been a net investment of £139,000 in tangible fixed assets in the
year. Net borrowing, including invoice discounting, at the balance sheet date
was approximately £130,000 higher than at the same time last year mainly due to
an enhanced working capital requirement following a busy trading period in the
last weeks of the year: trade debtors at the balance sheet date were over
£500,000 higher than at the end of the previous year. At all times during the
year the Group has been able to work comfortably within its borrowing limits and
the credit control function at both locations continues to operate efficiently.

The start of the new year has seen a relatively quiet period of trading after
the busy fourth quarter of the previous year. However several significant
contracts are expected to be awarded and after taking the necessary action to
reduce overheads at Solid State Supplies the directors are confident of the
Group's prospects for the current year. The directors continue to look for
suitable acquisitions to further strengthen the operations of the Group.


Gary Marsh
Managing Director
11 July 2007


Enquiries:

Solid State plc

Peter Haining                              01892 667 466
Chairman

Gary Marsh                                 01892 836 836
Managing Director

Charles Stanley Securities
Nominated Adviser
Philip Davies                              020 7149 6000
Carl Holmes



CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31st March 2007
                                                                      2007              2006
                                                                         £                 £
Turnover                                                        12,369,904        10,451,967
Cost of sales                                                   (8,784,024)       (7,543,395)

GROSS PROFIT                                                    3,585,880         2,908,572
Selling expenses and distribution costs                         (1,356,520)       (1,215,522)
Administrative expenses                                         (1,653,936)       (1,694,956)

OPERATING PROFIT/(LOSS)                                         575,424           (1,906)
Other interest receivable and similar income                    2,326             3,639
Interest payable                                                (113,133)         (80,897)

PROFIT/(LOSS) ON ORDINARY
ACTIVITIES BEFORE TAXATION                                      464,617           (79,164)
Tax on profit/(loss) on ordinary activities                     (94,865)          34,893

PROFIT/(LOSS) ON ORDINARY
ACTIVITIES AFTER TAXATION                                       369,752           (44,271)

EARNINGS PER SHARE
Basic                                                           6.0p              (0.7p)
Diluted                                                         6.0p              (0.7p)

All amounts relate to continuing activities.



CONSOLIDATED BALANCE SHEET
at 31 March 2007
                                                                       2007              2006
                                                                       £                 £
FIXED ASSETS
Intangible assets                                                      1,569,325         1,660,878
Tangible assets                                                        342,838           373,562

                                                                       1,912,163         2,034,440

CURRENT ASSETS
Stocks                                                                 1,249,419         1,081,498
Debtors                                                                2,365,117         1,863,854
Cash at bank and in hand                                               84,466            153,903

                                                                       3,699,002         3,099,255

CREDITORS: Amounts falling due within one year                         3,058,370         2,560,981

NET CURRENT ASSETS                                                     640,632           538,274

TOTAL ASSETS LESS CURRENT LIABILITIES                                  2,552,795         2,572,714

CREDITORS: Amounts falling due after more than one year                217,998           553,737

                                                                       2,334,797         2,018,977

CAPITAL AND RESERVES
Called up share capital                                                307,826           307,826
Share premium account                                                  756,980           756,980
Capital redemption reserve                                             4,674             4,674
Profit and loss account                                                1,265,317         949,497

SHAREHOLDERS' FUNDS                                                    2,334,797         2,018,977


CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2007
                                                                       2007              2006
                                                                       £                 £

Net cash inflow from operating activities                              177,086           1,216,366

Return on investments and servicing of finance:
Interest received                                                      2,326             3,639
Other interest paid                                                    (113,133)         (80,897)

Net cash (outflow)/inflow from return on investments and servicing of
finance                                                                (110,807)         (77,258)

Taxation
Corporation tax paid                                                   (39,955)          (185,253)
Corporation tax repaid                                                 42,112            -

Net cash inflow/(outflow) from corporation tax                         2,157             (185,253)

Capital expenditure and financial investment
Payments to acquire tangible fixed assets                              (188,808)         (145,093)
Receipts from sales of tangible fixed assets                           49,444            43,957

Net cash outflow from capital expenditure and financial
investment                                                             (139,364)         (101,136)

Acquisitions and disposals
Purchase of business operation                                         -                 (1,833,167)
Net cash acquired with subsidiary                                      -                 234,977

Net cash outflow from acquisitions and disposals                       -                 (1,598,190)

Dividends paid                                                         (61,565)          (153,912)

Net cash outflow before financing                                      (132,493)         (899,383)

Financing
Medium term loan received                                              -                 500,000
Repayments of medium term loan: capital element                        (262,270)         (138,429)
Invoice discounting finance received/(paid)

(net movement)                                                         (142,730)         501,566

Net cash inflow/(outflow) from financing                               (405,000)         863,137

Decrease in cash                                                       (537,493)         (36,246)


NOTES
     
1.   The attached preliminary announcement is prepared on the same basis as set
     out in the previous year's annual accounts and does not constitute 
     statutory accounts within the meaning of Section 240 of the Companies Act 
     1985; the statutory accounts for the year ended 31 March 2007 upon which an 
     unqualified audit opinion has been given and which did not contain a 
     statement under Section 235, 237(2) or 237(3) of the Companies Act 1985, 
     will be delivered to the Registrar of Companies at a later date.  A duly 
     appointed and authorised committee of the Board of Directors approved the 
     preliminary announcement.


2.   CHANGES TO ACCOUNTING POLICIES

The group has adopted FRS 20 'Share based payment'. FRS 20 'Share based payment'
requires the recognition of share-based payments at fair value at the date of
grant. Prior to the adoption of FRS20, the group recognised the financial effect
of the share based payment in the following way: when shares and share options
were awarded to employees a charge was made to the profit and loss account based
on the difference between the market value of the company's shares at the date
of grant and the option exercise price in accordance with UITF Abstract 17
(revised 2003) 'Employee Share Schemes.'  The credit entry for this charge was
taken to the profit and loss reserve and reported in the reconciliation of
movements in shareholders' funds.

In accordance with transitional provisions of FRS 20, the standard was applied
retrospectively to all grants of equity instruments after 7th November 2002 that
were unvested as of 1st April 2006, and to liabilities for share-based
transactions existing at 1st April 2006.

For 2006 the change in accounting policy has resulted in a net increase in the
loss for the year of £19,103. For 2007 the impact of share-based payments is a
net charge to income of £7,633. The share-based payments expense has been
included in administrative expenses. There has been no impact on the net assets
of the Group or the Company.


3.   OPERATING PROFIT

     The operating profit is stated after charging/(crediting):

                                                               2007                 2006
                                                               £                    £

Depreciation                                                   152,240              150,860
Loss on disposal of fixed assets                               17,847               17,453
Amortisation of goodwill                                       91,553               71,062
Auditors' remuneration:
Audit services                                                 43,794               35,406
Non-audit services                                             8,818                24,498
Operating lease rentals:
Plant and machinery                                            26,981               25,429
Other                                                          128,881              123,421
Research & development                                         89,448               10,123
Foreign exchange gains                                         (72,824)             (67,184)
Employment termination costs                                   6,127                33,688
Relocation expenses: Wordsworth Technology Limited             -                    89,918
Ex gratia payment to former director                           -                    30,000

Included in audit fees is an amount of £1,000 (2006: £15,349) in respect of the
Company. Additional non-audit services in relation to a corporate finance
transaction for a proposed acquisition were £8,818 (2006: £24,498) and have been
carried forward and will be capitalised and added to the goodwill figure on
consolidation.

The relocation expenses for Wordsworth Technology Limited of £89,918 represents
the costs, mainly staff termination costs, arising from the relocation of its
business from Edenbridge in Kent to the Steatite Limited premises at Redditch in
Worcestershire.

     
4.   DIVIDENDS

                                                                   2007             2006
                                                                   £                £


Final dividend paid for the prior year of nil per share (2006: 2p) -                123,130
Interim dividend paid of 1p per share (2006: 0.5p)                 61,565           30,782

                                                                   61,565           153,912

Final dividend proposed for the year 2p per share (2006: nil)      123,130          -

     
5.   EARNINGS PER SHARE

                                                                   2007             2006
                                                                                    (as
                                                                                    restated)
                                                                   £                £
The earnings per share is based on the following:
Earnings                                                           369,752          (44,271)

Weighted average number of shares                                  6,156,511        6,156,511
Diluted number of shares                                           6,156,511        6,156,511

Earnings per share                                                 6.0p             (0.7)p
Diluted earnings per share                                         6.0p             (0.7)p



Earnings per ordinary share has been calculated using the weighted average
number of shares in issue during the year. The weighted average number of equity
shares in issue was 6,156,511 (2006: 6,156,511).

The Diluted earnings per share is based on 6,156,511 (2006: 6,156,511) ordinary
shares which allow for the exercise of all dilutive potential ordinary shares.

     
6.   The Annual Report will be sent to shareholders on 16 July 2007 and made
     available to the public at the registered office of the Company at Unit 2,
     Eastlands Lane, Paddock Wood, Kent, TN12 6BU.


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