Solid State’s FY15 results demonstrate the success of its growth strategy, with an impressive 35% year-on-year increase in adjusted pre-tax profits. The strategy is based on top-line growth through selective acquisitions, the addition of new product lines and entry into new industry verticals such as green energy and security solutions. This is combined with margin improvement through focus on value-added design and assembly capability and development of own-brand products such as high-output LED modules. The prospective P/E is currently slightly lower than the annualised mean for listed peers (15.1x vs 16.9x). A small premium may be justified given the potential for faster than average profits growth.