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Thanks very much for the updates from ADVN Sahid , has reinvigorated my confidence once more. Yesterdays RNS has also helped. We have we both been here a long time and when its quiet you tend to doubt things , cheers.
Many thanks Sahid much appreciated. I think the next update could be interesting! Onwards and upwards Cheers Fred
Where is growth coming from? As mentioned APC are an established company with c.£18m turnover per annum via a number of longstanding suppliers and end customers. With the cost base realigned (£2m costs removed on annualised basis) the company is now profitable & indicated during its release of H1 2017 results that March 2017 bookings stood at £2.1m and hopefully operational gearing should now be emerging. The first signs of the growth strategy emerged in the RSN Reach released last week with the appointment of a Business Development Director & securing 3 new distribution agreements in RF & Microwave and also High Reliability products. Worth mentioning some other snippets, such as their launch of APC Smartwave last year to provide Internet of Things (IoT) products. APC also highlighted via their web site the growing requirement of companies to meet MiFID II legislation by the Jan 2018 deadline & the increasing focus on subsidiary APC Time's relationship with supplier Meinberg to meet the requirements. HTTP://apcplc.com/news-posts/apc-time-attending-mifid-2017/ Forthcoming trading update? I believe that the company may issue a trading statement in the near future in respect of the 2017 year end which occurred last week (31.08.2017). Any update will hopefully confirm the progress highlighted in the interims, indicating the business both stable & profitable, while confirming the growth drivers in 2017/18. If APC can drive growth, maintain gross margins of c.35% & generate cash, then with operational gearing kicking in I don't believe it fanciful to think that APC could generate profits of £1m+ EBIT moving forward. Such performance would bring the company into sharper investor focus, although it looks as if a number of focused investors have already taken positions. Well, I hope that proves to be the case!!! Disclosure I have a modest holding. Please DYOR Kind regards, GHF
I've subsequently spoken at length with APC & v impressed with CEO Richard Hodgson who I believe is implementing the steps that will lead the company into a period of sustainable profitable growth. What do APC technology do? "APC Technology Group PLC provides design, specification and distribution of specialist electronic components and systems, lighting technologies and connectivity products to the defence, aerospace, industrial, real estate, logistics and healthcare sectors." They describe themselves as a “design in” distribution business focused on the high end electronic components sector alongside a division delivering LED lighting. HTTP://apcplc.com/ In English, my understanding is that APC's engineers engage with their UK customer base to "design in" the products that are supplied by a distribution base that comprises companies from throughout the world. We are talking product lines where the, "end-use equipment is operating in extreme conditions or is running applications where component failure would be catastrophic." Think power components for the military or aerospace or....the ExoMars Trace Gas Orbiter launched from Kazakhstan by the European and Russian Space Agency in 2016 that used the DC-DC converters supplied by APC. HTTP://apcplc.com/news-posts/apc-hi-rel-modules-on-exomars-trace-gas-orbiter/ The companies (suppliers) that APC distribute on behalf of may be small in size or operate in niche markets which negates the need for a UK distribution & admin base. In other words, APC provides a number of value-added functions that not only includes the supplier with an end market to sell into, but also the addition of value added services such as the modification or design-in of the products supplied to meet the end customers requirements. It may also include the provision of an admin, importation & logistic function to assist the supplier e.g. the UK defence & aerospace market is highly regulated & requires accreditation and certification which APC can progress & gain on behalf of the supplier. Worth mentioning that the company may be a beneficiary of BREXIT as the complexities of dealing with the UK end user market of the UK may be more problematic for ROW companies without a UK base or specialised distributor like APC In the 2016 Annual Report the company indicated exclusive distribution agreements with over 60 manufacturers of electronic components and systems for the UK market. This included components for flight critical systems, power distribution in civil aircraft, high voltage components for power supplies, custom filters for harsh environments, satellites and space exploration, transportation and hybrid vehicles and extreme temperature oil and gas components. The following presentation from April 2017 provides a summary of the APC proposition & their addressable markets in p4 & p5. HTTP://apcplc.com/hideout-app/app-up
Glasshalfull5 Sep '17 - 21:06 - 680 of 694 5 0 EDIT - A paragraph went AWOL concerning the recent management teams investment into the company while copying draft write-up over onto ADVFN. Now included. APC Courtesy to mention that I've been a buyer in APC. It's been harder to find value in the market recently as momentum trading appears all the rage, but I've been suitably impressed with the drive & ambition of the new management team & hope this proves to be a rewarding long term investment. Background APC is a well established company of over 35 years. The share price reached the heady heights of 68p in November 2013.... & it's been downhill ever since, with the shares bouncing off 5.75p in June 2017 - fingers firmly crossed this was the low! This followed a couple of placings to shore up the balance sheet over recent years with the current share price of 6.75p equates to a market cap of £8.8m. At the end of H1 2017 net debt stood at £2.9m at (28.02.2017) for an EV of £11.7m. The company had plenty of headroom as the £2.9m net debt comprised £2.5m drawn on invoice finance facilities (£6m facility), £0.6m of loan notes (due July 2018) and £0.2m cash. While I would prefer the balance sheet to be stronger, the new team appear to have turned the business around & have slashed costs by over £2m on an annualised basis. Indeed, the H1 2017 results marked the first glimpse of a new dawn that followed change amongst most managerial positions. This concluded an extensive 18 month restructuring period which included the disposal of a loss making business & progress on refocusing the company. H1 2017 results highlighted the company delivering a pre-exceptional operating profit of £0.4m on turnover of £8.3m. Gross margin was 34% with net debt reduced by £0.3m. So, why invest now? Well apart from the first sign of a company turnaround & buying at what I hope is close to a low (share price is on its knees) my attention was first drawn to the stock when I noticed that a well respected PI had taken a notifiable stake in the company (>3%). I also noted the share register included notifiable holdings with the likes of Bob Holt at 3% (Chairman of Mears Group); Mark Blandford via Rockridge Investments now at 11.4% (Sportingbet founder); the savvy small cap investors Hargreave Hale now at 16.6% & Octopus at 6.6%. Quite an enviable list for any small cap company. The CEO, Chairman and some other notable investors recently subscribed for shares in the company. They invested £125k & £250k into APC during March & May 2017 respectively (at 6.75p), thus showing their confidence in APC while boosting the balance sheet at the same time. I've subsequently spoken at length with APC & v impressed with CEO Richard Hodgson who I believe is implementing the steps that will lead the company into a period of sustainable p
Hi Sahid any chance you could copy the ADVFN write up onto here? I'm on holiday with very restricted access. Many thanks Fred
Or pension fund? Whatever the reason I do not believe it signals anything to be concerned about. Did you guys see the excellent write up last week on ADVFN by Glasshalffull? If not worth a look. Very positive and straight from the horses mouth!
May have made room in an Isa then he wouldn't have to pay tax on the rerating that's coming?
Yesterdays RNS doesn't fill me with confidence. A director transferring shares to a holding company doesn't make much sense to me. Anyone shed light on why they might do that ?
ffs is there anything else left for lse to cock up send them an e-mail at info@lse.co.uk
It appears we are getting APT news not APC. How do we advise lse of this error?
The jury is out on the codes. Sometimes whether by coincidence or fact they do ring true but I believe that the brokers can sell any amount of this stock to the larger holders hence the prices way above the bid they are paying. Thanks for posting the chart Fred.
Code 100 http://www.lse.co.uk/view-general-chat-thread.asp?forum=general&thread=1706356D-A363-4D84-A2E8-E74AAE0A1D81 If you believe in such things!!!
Share your frustration but a lot of those RNS' last year were related to placings and their related holdings announcements. Also a contract win but the updates this year have indicated improved trading in the bread and butter distribution division so not too gloomy. I find it extremely frustrating that whatever the results this year we have nothing to judge the performance on. The house broker and advisor has issued nothing and therefore I wonder what sort of advice he is giving to management. The only sign of hope I see is that there is no major seller and the companies largest shareholder is still adding. Sadly you are probably correct in suggesting that we will wait until the year end for news and I see that being the case for many years to come unless there is a policy change. The market in general seems to have lost interest and unless this is quickly addressed it could be a very long road back.
No news for ages now. 26 RNS's last year , 13 so far this. I don't see news until December's financials TBH. A bit worrying as I would expect a company looking for greater revenue growth and work would have announced at least 1 new contract by now.
A good few buys alson on the 31st several 13k buys! Funally heading northi believe!
Yes and the chart hopefully now showing a lovely shaped bottom GLA
Sorry, 500892 brought @ .06625p = £33,184.09.
500892 brought @ .06625p = £331,840.95, it appears to me that someone is quietly building up a nice holding and I fully intend to do the same if/when funds come available. 03-Aug-17 14:18:36 6.625 500,892 6.25 7.00 33.18k
Just (+0.125)
No broker update = no trades zzzzzzzzzzzzzzz
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(-_-) zzz
Agreed, are we at last moving North?
Time for all those sells from last week to be bought at a nice little price.