SHARE PUNT OF THE WEEK

WHAT IS IT? Solid State specialises in socalled ruggedized electronics – ruggedized essentially means that the products are designed for use in a harsh environment. Typical industries are transport companies. They also work with military and construction firms who have specific requirements for products, such as toughened touchscreens.

WHAT’S THE LATEST? Revenue was up 9pc to £40m and pre-tax profit had climbed 6pc to £3.1m for the year to March 31. Solid State bought specialist battery business Creasefield for £1.6m. WHO BACKS IT? The largest shareholder is Hargreave Hale, an investment company which specialises in smaller firms. It has an 18pc stake in the business. Other investors include finance firms Schroder & Co and Charles Stanley. Managing director of the firm Gary Marsh and founder Gordon Comben are also among the top five shareholders.

WHY YOU SHOULD INVEST Broker FinnCap says Solid State’s investment in its facilities and people means it is in a good position to grow. It’s aiming to double its revenue over the next five years. Analysts at WH Ireland said the growth prospects for the industry could be being underestimated.

. . . AND WHY YOU SHOULDN’T Solid State has carved out a niche but the projects it works on are small volume and very specific, so some investors might be concerned about whether it can get enough business for revenues to continue rising. That said, some of the products and the companies it supplies are very sensitive, so firms are keen to use UK manufacturers which limits the possibility of losing out to cheaper, overseas rivals.