Redditch-based Solid State (www.solidstateplc.com) has increased its profits by 10%, as it moves on from the loss of a major Ministry of Justice contract.

The cash settlement that the electronics group received from the Government for the cancelled contract is to be used to fund growth opportunities and acquisitions.

Solid State has already paid £1.6 million for Crewkerne-based custom-battery business Creasefield back in May and has relocated its Redditch battery operations to Somerset as part of the integration process.

Pre-tax profits increased to £1.64 million in the six months to September, despite a 9% drop in revenues to £20.1 million.

Chairman Tony Frere said: “Solid State has had a very positive first half. The acquired businesses are trading well in their respective sectors and contributing well to initiatives that will drive future growth.

“The group order book at 30 September was £14.8 million. Solid State has a strong balance sheet and a supportive bank, which enables it to confidently pursue future growth initiatives and acquisitions.”