Interim Results

Solid State Supplies PLC
05 December 2003

                           Solid State Supplies PLC

           Interim Results for the six months ended 30 September 2003



Chairman's Statement



Results



The unaudited profit before tax of the Group for the six months ended 30
September 2003 was £57,000 (2002: £212,000) on a turnover of £4,154,000 (2002:
£4,525,000).  The basic earnings per share amounted to 0.6p (2002: 3.2p).  The
pre-tax profit is stated after goodwill amortisation of £17,000 (2002: nil).



Trading Review



Solid State Supplies

Although market conditions in the electronic component distribution industry
were difficult in the first half of our financial year, the Company was able to
trade profitably.  Confidence appears to be returning to the industry with both
market commentators and component manufacturers reporting a significant increase
in demand from the Asia Pacific region.  Whilst this has yet to be felt in
Europe, this upturn is bringing with it some increased lead times and hardening
of prices for semiconductors here in the UK.



We await firm evidence of an upturn, but are cautiously optimistic that we will
see the benefits of our significant product design work during 2004.



Steatite

The relocation of the company into its new premises at Redditch in
Worcestershire which took place in the first half of 2003 at a cost of
approximately £80,000 is now complete, and the company is well established in
its new base.



Steatite has achieved a positive performance during a prolonged period of
uncertainty in world markets both financially and in manufacturing.  Whilst
disappointing not to see growth year on year, we need to be aware that we are
affected by the increasingly competitive market and the underlying rate of
economic growth. Steatite has been able to produce a robust performance,
maintaining and even improving its customer performance with a positive
operating cash flow.



In a climate that remains tough and somewhat uncertain with customers continuing
to trade cautiously, there are positive signs of improvement.  The book to bill
ratio at Steatite is stronger than it has been for a number of years, with an
outstanding order book that reflects increased order activity.



We are optimistic in terms of achieving growth and thus continuing to improve
performance on the back of recent large contract awards.



Debtor under subcontract



In the 2003 Annual Report and Accounts issued in June 2003 we reported that
there was included in trade debtors an amount of £428,000 which related to the
balance due under a sub-contract which would be payable when the main contractor
had been paid.  We stated that the Directors were satisfied that the contract
had been satisfactorily completed in terms of the Group's commitments and were
confident that the main contractor would be able to successfully complete the
remaining work and that the debt would therefore be fully recoverable.



Although none of this amount was received by the Group during the first half of
the financial year, the Directors are pleased to report that the difficulties
between the main contractor and the ultimate customer have now been largely
resolved and during November £240,000 of the outstanding amount has been
received by the Group.  It is now anticipated that the balance of the monies due
under the contract will be received during the next few months.



Future acquisitions



Following the successful acquisition of Steatite some eighteen months ago, the
Group continues to look for suitable acquisitions within the electronics
industry.



Dividends



The Directors have decided to declare an interim dividend of 1p per share,
compared with 1.5p per share last year.  The interim dividend will be paid on
9th January 2004 to shareholders on the register at the close of business on
19th December 2003.



Conclusion



I would like to thank my fellow directors and all the staff of the group for
their support over the past six months.



Peter Haining

Chairman



5 December 2003





Enquiries:



Peter Haining
Chairman
Solid State Supplies plc
01892 667 466


                  INTERIM CONSOLIDATED PROFIT AND LOSS ACCOUNT

                   for the six months ended 30 September 2003


                                                           Unaudited           Unaudited            Audited

                                                       Six months to       Six months to            Year to

                                                     30 September 03      30 September 02          31 March 03

                                                               £'000            £'000                   £'000


Turnover                                                       4,154             4,525                   9,009

Cost of sales                                                (2,803)              (3,179)              (6,249)
                                                              ______               ______               ______

Gross profit                                                   1,351                1,346                2,760
                                                              ______               ______               ______

Selling expenses and distribution costs                        (609)                (553)              (1,136)

Administrative expenses                                        (650)                (558)              (1,328)
                                                              ______               ______               ______

                                                             (1,259)              (1,111)              (2,464)
                                                              ______               ______               ______

Operating profit                                                  92                  235                  296

Other income                                                       -                    5                    5

Interest payable                                                (35)                 (28)                 (61)
                                                              ______               ______               ______

Profit on ordinary activities before taxation                     57                  212                  240

Tax on profit on ordinary activities                            (17)                 (11)                  (5)
                                                              ______               ______               ______

Profit on ordinary activities after taxation                      40                  201                  235

Dividends                                                       (62)                 (93)                (218)
                                                              ______               ______               ______

RETAINED(LOSS)/ PROFIT FOR THE PERIOD                           (22)                  108                   17
                                                              ______               ______               ______

Earnings per share (see below)

            Basic                                               0.6p                 3.2p                 3.8p

            Diluted                                             0.6p                 3.1p                 3.7p


All amounts relate to continuing operations.




                                   CONSOLIDATED BALANCE SHEET
                                   as at 30 September 2003


                                                               Unaudited        Unaudited               Audited

                                                                   As at            As at                 As at

                                                         30 September 03    30 September 02          31 March 03

                                                                   £'000              £'000                £'000


FIXED ASSETS
Intangible assets                                                    646                670                  663
Tangible assets                                                      581                521                  560
                                                                  ______             ______               ______

                                                                   1,227              1,191                1,223
                                                                  ______             ______               ______

CURRENT ASSETS
Stock                                                              1,362              1,369                1,194
Debtors                                                            2,009              2,644                2,049
Cash at bank and in hand                                               2                186                   16
                                                                  ______             ______               ______

                                                                   3,373              4,199                3,259


CREDITORS
Amounts falling due within one year                              (2,009)            (2,499)              (1,815)
                                                                  ______             ______               ______

                                                                   1,364              1,700                1,444
                                                                  ______             ______               ______

TOTAL ASSETS LESS CURRENT LIABILITIES                              2,591              2,891                2,667

CREDITORS
Amounts falling due after more than one year                       (534)              (721)                (588)
                                                                  ______             ______               ______

                                                                   2,057              2,170                2,079
                                                                  ______             ______               ______

CAPITAL AND RESERVES
Share capital                                                        311                311                  311
Capital redemption reserve                                             1                  1                    1
Share premium account                                                757                757                  757
Profit and loss account                                              988              1,101                1,010
                                                                  ______             ______               ______

SHAREHOLDERS' FUNDS - EQUITY                                       2,057              2,170                2,079
                                                                  ______             ______               ______




                          CONSOLIDATED CASH FLOW STATEMENT

                   for the six months ended 30 September 2003


                                                               Unaudited         Unaudited             Audited

                                                           Six months to     Six months to             Year to

                                                         30 September 03    30 September 02          31 March 03

                                                                   £'000              £'000                £'000


Net cash inflow from operating activities                            163                 47                  294

Return on investments and servicing of finance:
Interest received                                                      -                  5                    5
Interest paid                                                       (35)               (28)                 (61)
                                                                  ______             ______               ______

Net cash (outflow)                                                  (35)               (23)                 (56)
                                                                  ______             ______               ______

Taxation:
Corporation tax paid                                                   -                  -                 (32)
                                                                  ______             ______               ______
Net cash (outflow)                                                     -                  -                 (32)
                                                                  ______             ______               ______

Capital expenditure and financial investment:
Payments to acquire tangible fixed assets                          (114)                (5)                (119)
Receipts from sales of tangible fixed assets                          12                 33                   31
                                                                  ______             ______               ______

Net cash inflow/(outflow)                                          (102)                 28                 (88)
                                                                  ______             ______               ______

Acquisitions and disposals:
Purchase of business operation                                         -            (1,303)              (1,312)
                                                                  ______             ______               ______

Net cash (outflow)                                                     -            (1,303)              (1,312)
                                                                  ______             ______               ______

Equity dividend paid                                               (124)              (187)                (280)
                                                                  ______             ______               ______

Net cash (outflow)                                                 (124)              (187)                (280)
                                                                  ______             ______               ______
Financing:
Medium term loan received                                              -                750                  750
Repayments of medium term loan                                      (66)               (66)                (102)
Hire purchase finance repaid: capital element                       (10)               (25)                 (57)
                                                                  ______             ______               ______

Net cash inflow/(outflow)                                           (76)                659                  590
                                                                  ______             ______               ______

Decrease in cash                                                   (174)              (779)                (884)
                                                                  ______             ______               ______




                                NOTES TO THE INTERIM REPORT

                        for the six months ended 30 September 2003
                  


1.   Basis of preparation of interim financial information



The interim financial statements have been prepared on the basis of accounting
policies consistent with those set out in the company's Annual Report and
financial statements for the year ended 31 March 2003.  The unaudited financial
statements do not constitute statutory accounts within the meaning of Section
240 of the Companies Act 1985. Statutory accounts for year ended 31 March 2003
have been filed with the Registrar of Companies.  The Auditors' Report on these
accounts was unqualified.



2.   The earnings per share



The earnings per share figures are based on the profit on ordinary activities
after taxation as stated in the unaudited profit and loss account and the
weighted average number of shares in issue during each period.  The weighted
average number of shares in issue during the period was 6,225,000 for the six
months ended 30 Sepember 2003, 6,225,000 for the year ended 31 March 2003 and
6,225,000 for the six months ended 30 September 2002.  The calculation of
diluted earnings per share was based on 6,424,000 for the six months ended 30
September 2003, 6,404,000 for the year ended 31 March 2003 and 6,384,000 for the
six months ended 30 September 2002.



3.   Reconciliation of operating profits to net cash inflow/
(outflow) from operating activities


                                                               Unaudited        Unaudited            Audited

                                                           Six months to     Six months to            Year to

                                                         30 September 03    30 September 02          31 March 03

                                                                   £'000              £'000                £'000


Operating Profit                                                      92                235                  296
Amortisation of intangible fixed assets                               17                  -                   30
Depreciation charges                                                  89                 84                  146
(Profit)/loss on disposal of fixed assets                            (8)                (1)                    2
(Increase)/decrease in stocks                                      (168)                 84                  259
(Increase)/decrease in debtors                                        39              (725)                (130)
(Decrease)/increase in creditors                                     102                370                (309)
                                                                  ______             ______               ______

Net cash inflow from operating activities                            163                 47                  294
                                                                  ______             ______               ______



4.  Analysis and reconciliation of net cash


                                                                 Audited               Cash            Unaudited

                                                                31.03.03               Flow             30.09.03

                                                                   £'000              £'000                £'000


Cash at bank and in hand                                              16               (14)                    2
Bank overdrafts                                                     (86)                 23                 (63)
Short term borrowings                                              (159)              (183)                (342)
                                                                 _______            _______              _______

                                                                   (229)              (174)                (403)
                                                                 _______            _______              _______



5.  Further copies of this document are available both at the registered
office of the Company and from the offices of Charles Stanley & Company Limited,
25 Luke Street, London EC2A 4AR.


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