Final Results

Solid State Supplies PLC
01 July 2005

1 July 2005



                            Solid State Supplies PLC

           Preliminary Announcement for the year ended 31 March 2005



CHAIRMAN'S STATEMENT

Results

The audited profit before tax of the Group was £315,000 (2004: £268,000) after
charging amortisation of goodwill of £35,000 (2004: £35,000) on a turnover of
£9,480,000 (2004: £8,638,000). The basic earnings per share amounted to 3.8p
(2004: 3.2p).

Trading Review

Solid State Supplies

As has been widely reported, the component distribution market in the UK remains
difficult.  Despite this, Solid State Supplies is benefiting from the Group's
Box Board Chip solutions strategy and has recorded a sequential improvement in
both sales and profits over this period.

Steatite

The results for the year were disappointing for Steatite as the UK manufacturing
market continues to decline.  Notwithstanding these demanding market conditions,
we have been encouraged by the level of new business opportunities that have
been generated in the form of new customers with our new own branded products.
Our order book has remained strong, but broadly flat during this period, the
longer term element has risen, suggesting an upturn in the second half of
calendar year 2005.

Future Acquisitions

In the report on the accounts for the year ended 31 March 2004, reference was
made to a potential acquisition within the electronics industry.  That
acquisition could not proceed at that time, due to unresolved issues. These
issues have now been resolved and I hope to be able to complete detailed
contract negotiations and make a formal announcement about this in the near
future.  The acquisition will be treated as a Substantial Transaction for the
purposes of the AIM Rules of the London Stock Exchange.

Summary

We remain committed to developing our technology solutions approach with the
focus on the design led element of our business. This will improve our product
brand and gain higher margins. This approach also provides closer ties with our
customers by providing value added services in systems integration. In the light
of the softness of the market in the UK with substantial shifting of the
manufacturing base offshore and the continued trend towards globalisation of the
electronics components distribution market, the Board is confident that its
change of focus in strategy will strengthen the Group's performance in the
medium to longer term.

Dividends

The Directors are recommending a final dividend of 2p per share which, together
with the interim dividend, makes a total for the year of 3.5p per share. This
compares with a total of 3p per share last year.  The final dividend will be
paid on 28 July 2005 to shareholders on the register at the close of business on
15 July 2005.

Renewal of authority to purchase the Company's shares

Last year, resolutions were passed at the Annual General Meeting to give the
Company the authority to purchase its own Ordinary shares on the Stock Exchange.
This authority would expire after a period of eighteen months from the passing
of the resolution. In order to avoid this authority expiring during the next
year and the need to call an extraordinary general meeting to renew the
authority, a resolution to renew the authority is set out in the notice of the
Annual General Meeting.

Under the terms of the resolution to be proposed at the Annual General Meeting,
the maximum number of shares which may be purchased in 923,476 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 150p.  The authority will automatically expire after a
period of eighteen months from the passing of the resolution unless renewed.

It is not the Directors' current 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 that all Ordinary shareholders vote in favour of the resolution at the
Annual General Meeting as they intend to do in respect of their beneficial
holdings amounting to 4,523,106 Ordinary shares, representing 73.47% of the
Company's issued Ordinary share capital.

Conclusion

I would like to thank my fellow Directors and the staff in general for their
continued support.


Peter Haining
Chairman
1 July 2005


CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the year ended 31 March 2005
                                                                                  2005                 2004
                                                                                     £                    £

Turnover                                                                     9,480,429            8,637,906
Cost of sales                                                              (6,698,300)          (5,826,847)
                                                                     -----------------    -----------------

GROSS PROFIT                                                                 2,782,129            2,811,059
Selling expenses and distribution costs                                    (1,181,137)          (1,181,001)
Administrative expenses                                                    (1,285,865)          (1,296,491)
                                                                     -----------------    -----------------

OPERATING PROFIT                                                               315,127              333,567
Other interest receivable and similar income                                     1,943                  831
Interest payable                                                               (1,660)             (66,243)
                                                                     -----------------    -----------------

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION                                  315,410              268,155
Tax on profit on ordinary activities                                          (79,573)             (71,575)
                                                                     -----------------    -----------------

PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION                                   235,837              196,580
Dividends - Equity                                                           (216,505)            (186,750)
                                                                     -----------------    -----------------

RETAINED PROFIT FOR THE YEAR                                                    19,332                9,830
                                                                     -----------------    -----------------

EARNINGS PER SHARE
Basic                                                                             3.8p                 3.2p
Diluted                                                                           3.8p                 3.2p


All amounts relate to continuing activities

There were no recognised gains or losses other than the profit for the year as
stated above.


RECONCILIATION OF MOVEMENT IN GROUP SHAREHOLDERS' FUNDS
For the year ended 31 March 2005

                                                     Group                          Company
                                                   2005            2004            2005            2004
                                                      £               £               £               £

Profit for the year                             235,837         196,580         305,934         153,190

Less: Dividends                               (216,505)       (186,750)       (216,505)       (186,750)

Purchase of own shares                         (33,811)               -        (33,811)               -
                                        --------------- --------------- --------------- ---------------
Net addition/(reduction) to
shareholders' funds                            (14,479)           9,830          55,618        (33,560)

Opening shareholders' funds                   2,089,406       2,079,576       1,888,934       1,922,494
                                        --------------- --------------- --------------- ---------------
Closing shareholders' funds                   2,074,927       2,089,406       1,944,552       1,888,934
                                        --------------- --------------- --------------- ---------------


CONSOLIDATED BALANCE SHEET
at 31 March 2005
                                                                                2005                  2004
                                                                                   £                     £

FIXED ASSETS
Intangible assets                                                            596,117               630,879
Tangible assets                                                              415,322               546,098
Investments                                                                        -                   500
                                                                   -----------------     -----------------
                                                                           1,011,439             1,177,477

CURRENT ASSETS
Stocks                                                                     1,091,215             1,256,979
Debtors                                                                    1,941,024             2,026,621
Cash at bank in hand                                                         108,536               159,494
                                                                   -----------------     -----------------
                                                                           3,140,775             3,443,094

CREDITORS: Amounts falling due within one year                             1,723,038             2,059,134
                                                                   -----------------     -----------------

NET CURRENT ASSETS                                                         1,417,737             1,383,960
                                                                   -----------------     -----------------

TOTAL ASSETS LESS CURRENT LIABILITIES                                      2,429,176             2,561,437

CREDITORS: Amounts falling due after more than one year                      354,249               472,031
                                                                            
                                                                   -----------------     -----------------
                                                                           2,074,927             2,089,406
                                                                   -----------------     -----------------

CAPITAL AND RESERVES
Called up share capital                                                      307,826               311,250
Share premium account                                                        756,980               756,980
Capital redemption reserve                                                     4,674                 1,250
Profit and loss account                                                    1,005,447             1,019,926
                                                                   -----------------     -----------------
SHAREHOLDERS' FUNDS-EQUITY                                                 2,074,927             2,089,406
                                                                   -----------------     -----------------



The financial statements were approved by the Board on 1 July 2005


CONSOLIDATED CASH FLOW STATEMENT
For the year ended 31 March 2005
                                                                                 2005                2004
                                                                                    £                   £

Net cash inflow from operating activities                                     673,859             676,648

Return on investments and servicing of finance:
Interest received                                                               1,943                 831
Hire purchase interest paid                                                    29,522             (4,011)
Other interest paid                                                          (31,182)            (62,232)
                                                                      ---------------     ---------------
Net cash outflow from return on investments and servicing of
finance                                                                           283            (65,412)

Taxation
Corporation tax paid                                                         (71,575)             (4,856)

Capital expenditure and financial investment
Payments to acquire tangible fixed assets                                    (80,616)           (189,167)
Receipts from sales of tangible fixed assets                                   25,934              19,137
                                                                      ---------------     ---------------
Net cash outflow from capital expenditure and financial
investment                                                                   (54,682)           (170,030)

Acquisitions and disposals
Receipt from sale of joint venture                                                500                   -
Purchase of business operation                                                      -             (2,625)
                                                                      ---------------     ---------------
Net cash inflow/(outflow) from acquisitions and disposals                         500             (2,625)

Equity dividends paid                                                       (217,875)           (186,750)
                                                                      ---------------     ---------------
Net cash inflow/(outflow) before financing                                    330,510             246,975

Financing
Repayments of medium term loan: capital element                             (108,572)           (128,909)
Hire purchase finance repaid: capital element                                (32,318)            (11,988)
Invoice discounting finance (paid)/received (net movement)                  (122,675)              33,348
Purchase of own shares                                                       (33,811)                   -
                                                                      ---------------     ---------------
Net cash (outflow)/inflow from financing                                    (297,276)           (107,549)
                                                                      ---------------     ---------------
Increase in cash                                                               33,234             139,426
                                                                      ---------------     ---------------


NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 March 2005

1.    The attached preliminary announcement is prepared on the same basis as set
out in the previous year's annual accounts and does not constitute statutory
accounts within the meaning of Section 240 of the Companies Act 1985; the
statutory accounts for the year ended 31 March 2005, upon which an unqualified
audit opinion has been given and which did not contain a statement under Section
235, 237(2) or 237(3) of the Companies Act 1985, will be delivered to the
Registrar of Companies at a later date.  A duly appointed and authorised
committee of the Board of Directors approved the preliminary announcement on 29
June 2005.

2.    SEGMENTAL ANALYSIS

The turnover and profit before taxation are attributable to the one principal
activity of the Group.  All operations are located in the United Kingdom. An
analysis of sales by destination is as follows:

                                                                   2005                  2004
                                                                      £                     £
United Kingdom                                                8,987,478             8,095,799
Europe                                                          395,777               394,477
United States of America                                         60,704                 8,722
Asia                                                             25,189               109,080
Africa                                                            8,834                27,154
Australasia                                                       2,447                 2,674
                                                        ---------------       ---------------
                                                              9,480,429             8,637,906
                                                        ---------------       ---------------

3.    OPERATING PROFIT

The operating profit is stated after charging/(crediting):
                                                                           2005                    2004
                                                                              £                       £

Depreciation                                                            177,049                 188,264
Loss/(profit) on disposal of fixed assets                                 8,409                 (4,866)
Amortisation of goodwill                                                 34,762                  34,762
Auditors' remuneration:
Audit services                                                           24,495                  29,814
Operating lease rentals:
Plant and machinery                                                      23,227                  41,337
Other                                                                   102,838                  84,485
Foreign exchange gains                                                (100,837)                (57,416)
Employment termination costs                                             14,896                   4,645
Shares for All Employee Share Plan                                        (940)                   3,310
Relocation expenses                                                           -                     607
                                                              -----------------       -----------------

Included in audit fees is an amount of £12,495 (2004: £21,314) in respect of the
Company. Additional non-audit services regarding the purchase of Steatite
Limited were £nil (2004: £2,625) and have been added to the goodwill figure on
consolidation.

4.    DIVIDENDS

                                                                                    2004                2003
                                                                                       £                   £
Interim dividend paid of 1.5p per share (2004: 1p)                                93,375              62,250
Final dividend proposed of 2p per share (2004: 2p)                               123,130             124,500
                                                                        ----------------    ----------------
                                                                                 216,505             186,750
                                                                        ----------------    ----------------

5.       EARNINGS PER SHARE


                                                                               2005                   2004
                                                                                  £                      £
The earnings per share is based on the following:
Earnings                                                                    235,837                196,580
                                                                 ------------------     ------------------
Weighted average number of shares                                         6,207,342              6,225,000
Diluted number of shares                                                  6,207,342              6,225,000

Earnings per share                                                             3.8p                   3.2p
Diluted earnings per share                                                     3.8p                   3.2p



Earnings per ordinary share has been calculated using the weighted average
number of shares in issue during the year. The weighted average number of equity
shares in issue was 6,207,342 (2004: 6,225,000).

The Diluted earnings per share is based on 6,207,342 (2004: 6,225,000) ordinary
shares which allow for the exercise of all dilutive potential ordinary shares.

6.    DEBTORS: Amounts receivable within one year

                                               Group            Group          Company          Company
                                                2005             2004                              2004
                                                   £                £                                 £
Trade debtors                              1,850,444        1,912,491          955,109        1,066,729
Amounts owed by Group
undertakings                                       -                -        1,121,828        1,166,072
Other debtors                                  1,985           16,861            1,985            5,387
Prepayments and accrued
income                                        88,595           97,269           58,538           47,321
                                       -------------    -------------    -------------    -------------
                                           1,941,024        2,026,621        2,137,460        2,285,509
                                       -------------    -------------    -------------    -------------



Group trade debtors include £436,248 (2004: £714,717) which are subject to an
invoice discounting agreement. Under this agreement, borrowing equal to 80% of
the relevant book debts can be taken with interest charged at 1.5% over bank
base rate and an administration fee of 3% of the gross value of debts per month.
At 31 March 2005, borrowing under the agreement of £314,711 (2004: £541,747) was
available of which £69,799 (2004: £192,474) was taken up leaving unused
borrowing facilities of £244,912 (2004: £349,273). Interest charges in the year
amounted to £5,720 (2004: £17,234) and administration fees to £9,466 (2004:
£9,840).



7.    CREDITORS: Amounts falling due within one year


                                                       Group          Group        Company        Company
                                                        2005           2004                          2004
                                                           £              £                             £
Bank overdrafts (secured)                              5,971         90,163          5,971         90,163
Bank loan (secured)                                   98,596        108,800         98,596         98,148
Trade creditors                                    1,049,345      1,116,482        380,057        605,568
Amounts due to invoice discounters                    69,799        192,474              -              -
Corporation tax                                       79,573         71,575         79,573         71,575
Other taxes and social security costs                238,151        250,636        135,270        128,121
Proposed dividend                                    123,130        124,500        123,130        124,500
Obligations under hire purchase
contracts                                                  -         12,804              -              -
Other creditors                                        4,694         32,621          4,694         15,185
Accruals and deferred income                          53,779         59,079         25,082         31,144
                                                ------------   ------------   ------------   ------------
                                                   1,723,038      2,059,134        852,373      1,164,404
                                                ------------   ------------   ------------   ------------




The bank loan and overdraft are secured by a fixed and floating charge over the
assets of the Company and the Group. At the balance sheet date, the Group had an
undrawn overdraft facility of £656,529 (2004: £572,337), which enables
flexibility in the management of liquidity.



The Company has guaranteed bank borrowings of its subsidiary undertaking.
Steatite Limited.  At the year end the liabilities covered by this guarantee
amounts to £nil (2004: £nil).



8.    CREDITORS: Amounts falling due after more than one year


                                                        Group          Group        Company        Company
                                                         2005           2004           2005           2004
                                                            £              £              £              £
Bank loan (secured)                                   354,249        452,617        354,249        452,617

Obligations under hire purchase contracts                   -         19,414              -              -
                                                  -----------    -----------    -----------    -----------
                                                      354,249        472,031        354,249        452,617
                                                  -----------    -----------    -----------    -----------
Bank loan repayments are due:
In more than one year but not
more than two years                                    98,596         98,148         98,596         98,148
In more than two years but not
more than five years                                  255,653        354,469        255,653        354,469
                                                  -----------    -----------    -----------    -----------
                                                      354,249        452,617        354,249        452,617
                                                  -----------    -----------    -----------    -----------





The bank loan was for £750,000 taken out in May 2002 and repayable by
instalments over seven years. The loan is secured by a fixed and floating charge
over the assets of the Company and the Group.



9.    The Annual Report will be sent to shareholders on 4 July 2005 and made
available to the public at the registered office of the Company at Unit 2,
Eastlands Lane, Paddock Wood, Kent, TN12 6BU




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