Interim Results - 6 Months to 30th September 1999

Solid State Supplies PLC
1 November 1999


SOLID STATE SUPPLIES PLC
Unaudited Interim Results for the six months ended 30th September 1999

CHAIRMAN'S STATEMENT

Results
The unaudited pre tax profit of the Company for the six months ended 30
September 1999 was £185,000 (six months ended 30th September 1998: £132,000)
on turnover of £3,057,000 (six months ended 30th September 1998: £2,948,000).

Trading Review
The trading period under review remained difficult due to the previously well
documented market conditions of falling prices, over supply and intense
competition but did, in some cases, show signs of price stabilisation and an
increase in component delivery times.  With this background it is therefore
very pleasing to be able to report that the profit on ordinary activities
before taxation has increased by some 40% over the same period last year
whilst turnover has increased by 3.8%.

You will be aware that following the loss in March 1999 of the Arizona
Microchip franchise, steps were taken immediately to reduce overheads in order
to protect the profitability of the Company whilst acknowledging the
inevitable effect the loss would have on the turnover.

During the period under review the Company has concentrated on three specific
market areas, namely Power Management, Aerospace and Defence, and
Communications/PC.  In doing so, we have sought to strengthen each sector with
new lines which are complementary to our existing franchises thereby seeking
to retain our strategy of specialisation by avoiding the handling of
conflicting products.

We are pleased to report the recent signing of a franchise agreement with
Holtek Semiconductor who produce within their product range microcontrollers
which should allow us, in time, to replace some of the revenue lost from the
Arizona Microschip range.  In addition, two new lines have been secured in the
Communications/PC sector.  This strengthening of our product portfolio should
produce benefits in both profitability and turnover during the coming months.

As a specialist distributor, we work very closely with the manufacturers so
that we provide a detailed understanding of their products and the benefits
they can bring to our customers.  We will continue to put emphasis on our
service and product support, an approach that we feel appeals to our customers
and suppliers alike.

Dividends
The Directors are recommending an interim dividend of 1p per share compared
with an interim dividend of 0.5p per share last year.  The interim dividend
will be paid on 10th January 2000 to shareholders on the register on 24th
December 1999.

Conclusion
The progress made by the Company is obviously very pleasing and reflects great
credit that should be given to all the staff for their efforts.  The hope must
be that our market sector is beginning to trade out of the recessionary period
we have been operating in.  If this is so, then the actions taken by the
Company will enable us to take full advantage of the opportunities presented
to us.
 
Proposal to Purchase the Company's Shares
As announced on 15th October 1999 your Directors have considered that it would
be advantageous for the Company to have authority to purchase its own Ordinary
Shares on the Stock Exchange.  It is necessary to seek the approval of the
ordinary shareholders to this proposal.  Accordingly, an Extraordinary General
Meeting will be convened at which a resolution will be proposed that the
maximum number of shares which may be purchased is 937,500 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 an amount equal to 105% of the average of the middle market
quotations for the Ordinary Shares as derived from the Stock Exchange Daily
Official List for the 10 business days prior to the date of purchase.  The
authority will automatically expire after a period of eighteen months from the
passing of the resolution unless renewed.

Based on the profits of the Company for the year ended 31st March 1999 and
assuming a cost of money of 7%, a purchase of 15% of the Company's Ordinary
Shares at the minimum price as calculated above on 15th October 1999 would
increase earnings per share by 5.5%. 

It is not the Directors' present 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 all ordinary shareholders to vote in favour of the resolution at the
Extraordinary General Meeting as they intend to do in respect of their
beneficial holdings amounting to 4,733,606 Ordinary Shares representing 75.7%
of the issued ordinary share capital of the Company.

William G. Marsh
Chairman
2nd November 1999
 
UNAUDITED INTERIM PROFIT AND LOSS ACCOUNT       
for the six months ended 30th September 1999

                                      Unaudited    Unaudited      Audited
                                    6 months to  6 months to      Year to
                                     30 Sept 99   30 Sept 98    31 Mar 99
                                          £'000        £'000        £'000
                                                   

Turnover                                  3,057        2,946        6,100
Cost of sales                            (2,157)      (2,089)      (4,333)
                                         ------       ------       ------
Gross profit                                900          857        1,767

Selling expenses and distribution costs    (495)        (499)      (1,007)
Administrative expenses                    (229)        (221)        (452)
                                         ------       ------       ------
                                           (724)        (720)      (1,459)
                                         ------       ------       ------
Operating profit                            176          137          308
Other income                                 10            6           17
Interest payable                             (1)         (11)         (22)
                                         ------       ------       ------
Profit on ordinary activities before 
taxation                                    185          132          303
                                         ------       ------       ------
Tax on profit on ordinary activities        (47)         (31)         (77)
                                         ------       ------       ------
Profit on ordinary activities after 
taxation                                    138          101          226
Dividends                                   (63)         (31)        (125)
                                         ------       ------       ------
RETAINED PROFIT FOR THE PERIOD               75           70          101
                                         ------       ------       ------
Earnings per share (see below)              2.2p         1.6p        3.6p
                                         ------       ------       ------
All amounts relate to continuing activities
 UNAUDITED BALANCE SHEET       
as at 30th September 1999

                                      Unaudited    Unaudited      Audited
                                          As at        As at        As at
                                     30 Sept 99   30 Sept 98    31 Mar 99
                                          £'000        £'000        £'000
                                                   
FIXED ASSETS
Tangible assets                             292          282          273
Investment property                          77           77           77
                                         ------       ------       ------
                                            369          359          350
                                         ------       ------       ------
CURRENT ASSETS
Stocks                                    1,299        1,564        1,300
Debtors                                   1,425        1,399        1,379
Cash at bank and in hand                     41            -          112
                                         ------       ------       ------
                                          2,695        2,963        2,791
CREDITORS:
Amounts falling due within one year        (991)      (1,206)      (1,190) 
                                         ------       ------       ------
                                          1,704        1,757        1,601
                                         ------       ------       ------

TOTAL ASSETS LESS CURRENT LIABILITIES     2,073        2,116        1,951

CREDITORS:
amounts falling due after more than 
one year                                    (47)        (196)           -

                                         ------       ------       ------
                                          2,026        1,920        1,951
                                         ------       ------       ------
CAPITAL AND RESERVES
Share capital                               313          313          313
Share premium account                       757          757          757
Profit and loss account                     956          850          881
                                         ------       ------       ------
SHAREHOLDERS' FUNDS - EQUITY              2,026        1,920        1,951
                                         ------       ------       ------

Notes:
1.  The unaudited profit and loss account and balance sheet do not constitute
statutory accounts within the meaning of Section 240 of the Companies Act
1985.  Statutory accounts for the year ended 31st March 1999 have been filed
with the Registrar of Companies.  The Auditors' Report on these accounts was
unqualified.

2.  The earnings per share figures are based on the profit on ordinary
activities after taxation as stated in the audited profit and loss account and
on the weighted average number of shares in issue during each period of
6,250,000.

3.  Further copies of this document are available from the offices of English
Trust Company Limited, 12a Charterhouse Square, London EC1M 6NA.