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Crook tag win gives Solid State big lift Solid State is one of AIM’s most up-and-coming smallcap stocks. Last year, the company secured a large contract with the UK’s Ministry of Justice (MoJ) that has taken the company (and the shares) to a new level. Solid State is frequently described as a provider of ruggedised computer equipment. Typically, customers approach Solid State when they require a technological solution to operate in a harsh environment. Solid State will then produce bespoke hardware with attributes that could not be matched by an off-the-shelf solution. Solid State is a group of two companies: Solid State Supplies and Steatite.

design and specification through to manufacture and deployment Solid State Supplies is a distributor of specialist electronic components. Steatite is the main trading division and participates at all levels of the process, working with the customer from design and specification through to manufacture and deployment. Steatite solutions include computers, batteries, radio equipment, antennae and electronic monitoring. It is the electronic monitoring side of operations that delivered the transformational contract win, an offender tagging order from the MoJ. Steatite applications include military, industry and emergency services. For example, Steatite manufactures computer servers that are designed to continue operating www.aimprospector.co.uk

even through the shock that would be expected from a torpedo strike. Other solutions include in-vehicle communications and location systems for fire departments and police. In these areas Solid State’s strategy is to be a small but important part of big budget projects. Another high profile example of Steatite’s work is the Avantix Mobile, the mobile ticket dispenser carried by guards on the national rail network. Rail is an attractive niche for the company, with moves being made into the manufacture of in-station ticket machines and cellular routers delivering passenger WiFi.

The group has positioned itself mid-market. Volumes in the company’s application area are typically too small to attract the like of Siemens and Philips, while smaller operators are unable to establish themselves with the customers worth chasing e.g. governments.

a member of ‘List X’, an elite group of companies The specifics of the products being supplied also creates a significant barrier to entry. Solid State has ISO and AS approvals that cannot be secured without significant

Solid State designs and manufacturers equipment for heavy industry and harsh environments

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March 2015 AIM Prospector  
March 2015 AIM Prospector  

Featuring five AIM companies: Juridica Investments, Solid State, StatPro, The Mission Marketing Group and Volvere.