APC Technology Says Has "Turned The Corner", Interim Loss Widens

LONDON (Alliance News) - APC Technology Group PLC Tuesday said it is confident it has "turned the corner" as it took steps to counteract a weak order book in its components segment in its first half, and reported a widened interim loss.

For the half year to end-February the company reported a pretax loss of GBP1.5 million, widened from a pretax loss of GBP732,000 the year before, as revenue dipped to GBP12.8 million from GBP14.5 million.

APC Technology attributed the dip in revenue to a weak order book in its components segment going into the half year, but said that a "renewed focus" during the period resulted in its highest bookings for a six-month period in "over five years".

Despite the widened loss APC Technology said it was "very pleased" with its result, mostly due to a turnaround in its Energy business, helped by cost cutting, improved margins, managing its supply chain and re-focusing its sales efforts.

"A strengthened and re-invigorated management team has aggressively assessed every area of the business, implemented new levels of monitoring and control, key performance measures, enhanced procurement practices, and aligned headcount to the areas of greatest opportunity and profitability," said Chief Executive Richard Hodgson in a statement.

"The daily disciplines instilled across the business have resulted in strong growth in the order book, focused and engaged staff, and cessation of loss-making operations. This focus has also driven a marked improvement in our gross margin as we move away from less profitable revenue opportunities," Hodgson said.

Shares in APC Technology were down 11% at 8.12 pence Tuesday morning.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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