APC Technology Net Debt Sliced Amid Interim Profit, Revenue Surge

LONDON (Alliance News) - Specialist electronics supplier APC Technology Group PLC said Tuesday its interim profit and revenue both surged and net debt fell as its continues to focus on expanding its profit performance.

Shares in APC were 7.8% higher at 9.30 pence on Tuesday.

For the six months ended February, pretax profit widened by a third to GBP470,000 from GBP353,000 a year prior. This was after revenue rose 24% to GBP10.7 million from GBP8.6 million the year before.

Profit performance was held back by GBP158,000 in exceptional costs during the period, primarily related to redundancy costs and other restructuring-related costs. Excluding these one-off costs, underlying pretax profit grew by 71% to GBP657,000 from GBP384,000 a year prior.

"These results show a further increase in the group's profitability and demonstrate the continuing success of the strategy of concentrating on the technical sales of specialist electronic components, products and systems," APC Chief Executive Officer Richard Hodgson said. "We are achieving this growth through our stated strategy of increased revenue from our existing technologies, signing new product lines and carefully targeted bolt-on acquisitions."

APC does not pay a dividend.

"We have also strengthened our balance sheet, with positive cash flow during the period and a decrease in debt, whilst achieving a reduced fixed cost base and a centralised support structure that is capable of absorbing further acquisitions," Hodgson added.

Net debt fell 33% to GBP2.7 million from GBP4.0 million the year prior. APC also highlighted that all "high interest bearing loan notes" had been repaid.