Last close As at 05/08/2026
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GBP105m
Research: Industrials
Solid State has announced that it has received contracts with a major UK smart warehouse solutions provider and robotics manufacturer to supply ruggedised power units for autonomous robots operating in cold storage warehouses. The contracts have a combined value of £4.3m. Deliveries will commence in H219 and continue into FY20, with potential for additional recurring revenues from the supply of replacement cells, which are consumable items, in later years. The contracts are supportive of consensus estimates, which are unchanged.
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Solid State |
Battery packs to power warehouse robots
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Technology |
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12 June 2018 |
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Solid State is a research client of Edison Investment Research Limited |
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Solid State has announced that it has received contracts with a major UK smart warehouse solutions provider and robotics manufacturer to supply ruggedised power units for autonomous robots operating in cold storage warehouses. The contracts have a combined value of £4.3m. Deliveries will commence in H219 and continue into FY20, with potential for additional recurring revenues from the supply of replacement cells, which are consumable items, in later years. The contracts are supportive of consensus estimates, which are unchanged.
Expertise in harsh environments is key
These contracts draw on Solid State’s experience of developing bespoke power units for use in harsh environments such as the oil and gas industry, commercial aerospace, sub-sea, military, security and government, water and rail. For this application the lithium-ion battery packs must work reliably at sub-zero temperatures, which is an environment where standard lithium-ion batteries exhibit severe performance degradation. The battery packs must also maximise the up-time of the autonomous vehicles which are required for 24/7 fulfilment cycles, shortening delivery times and reducing supply chain costs in the competitive online retail environment.
Expertise strengthened by Creasefield acquisition
The contract awards highlight the benefits of the acquisition of Crewkerne-based Creasefield in June 2016. The acquisition expanded the technology portfolio, took the group into complementary market segments and enhanced its existing engineering and production capabilities for batteries, giving access to an additional 24,000 sq ft of production capacity.
Valuation: Trading at discount to peers
The share price has picked up from the 241p low following the pre-close trading update. At current levels the shares are trading on prospective consensus P/E multiples that are at a discount to the mean for both our sample of specialist manufacturing companies (10.1x for Solid State vs 17.8x for peers) and our sample of value-added distributors (10.1x vs 20.0x). This indicates there is potential for share price upside once the group is able to demonstrate meaningful profit growth.
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Consensus estimates
Source: Company data, Bloomberg |
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