APC Technology warns on profits after PV arm disappoints

(ShareCast News) - APC Technology has warned that profits will be below market expectations after its solar panels business failed to win as much business as expected due to uncertainty around government renewables policy.The company said its three main operating divisions, Component Distribution, Water Hygiene and Minimise Energy, will all meet revenue expectations for the full-year but that Minimise's new generation business and its American unit will both fall short of full year targets, with a major contract delayed.Contracts "have not yet materialised as anticipated" at Minimise Generation, which was formed in January 2015 to focus on photovoltaic thermal (PV-T) panel sales in the UK, which the company said was "due largely to the uncertainty around government renewables policy and the knock-on effect this has had on the uptake of PV-T technology."APC said a contract valued at more than £1m, which has been active since January 2015, and was due to be delivered this year, has now been delayed."Business in the Americas is developing more slowly than previously expected, in part due to the short term fall in energy prices."Chairman Leonard Seelig has already begun an operational review of the business, while the board has already taken action to protect working capital but stressed its confidence that current facilities were more than sufficient to support the business. Said Seelig: "My role in leading the operational review will now be to focus the business on those divisions in order to strengthen the group's balance sheet and to deliver a profitable and cash generative business in future periods."