Solid State: MoJ Contract Terminated

Published 02/26/2016, 08:14 AM
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Solid State Plc (L:SOLI) has unexpectedly announced that the Ministry of Justice (MoJ) has terminated its contract. This has no impact on our FY16 and FY17 estimates, which already took a prudent view with regards to resuming deliveries under the contract. The share price has, in our opinion, overreacted to the news, ignoring the diversified platform that is able to deliver modest profit growth next year despite this negative development.

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