The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
APC2, I don't recall being told things are getting better but this is evidenced in the Interims. The recent RNS Reach appears to be a vindication of the January acquisition but the company themselves have over the past 2 years been very reluctant to give clues regarding current trading. Regardless, until we see a major uptick in revenue and profit we will stay off of the radar of most II's so the price will languish. Part of the company's plan for growth is more acquisitions so maybe all is not as bad as you think.
http://apcplc.com/hideout-app/app-uploads/2018/07/APC_PLC_RNS_Reach_NewLocService_030718.pdf
Well spotted Malcolm.This RNS (Reach) does not appear to have been picked up by any of the online brokers but IMO reports a very significant achievement. FBM were acquired with an expectation of £1m/yr anticipated at the time of the acquisition. I think it is clear that this growth stems from FBM and is in addition to the non franchised sales that existed originally at APC. Maybe the house broker will issue a note increasing the anticipated profit for F18 and 19. If that happens then we should at least get back to 8p if not the dim and distant past 10.
Bob: A question for the AGM. In the light of the recent positive news concerning Gen 3 and the increasing pipeline of identified business, do the BOD plan to buy any shares in the Company before the rise in SP?
Thanks, Sahid
Seams to be so much going on at APC, unfortunately no one wants to buy their stock? https://twitter.com/apctechgroup?lang=en
and still the SP flounders inversely proportional to the activity reported on the companies twitter account. I can only assume that the smaller companies on Aim are of no interest to the II's unless they can see exciting growth opportunities on the horizon. If I have one negative critisism of APC it is that they are not engaging with PI's through the various chanels available to them although according to twitter they were presenting at Mello last week. With both Dialight and Solid State suffering significant SP falls over the past month through various market reasons it may be that we are suffering the backlash although nowhere near as severely. Whatever the reason the fact remains that APC are showing no support for PI's and until they do IMHO the SP will languish. I hope I am proved wrong but feel it will take some monumental news to get the SP moving again. Fred, would a takeover be so bad?
Tend to agree but hopefully a new II could come on board now that things appear to be on the up. The impact of FBM has not yet been seen, a point that will be well accepted when management are doing the rounds. If the price does not start to creep up in a week or so we will once again have to rely on news for a boost rather than solid buying.
With more to come second half when the January acquisition turnover kicks in. So many buyers this morning but still price falls! Must be someone still trying to get out, so anoying after such an improvement.
Back to the future - was reported in the RNS 19 March. Very good news though and hopefully more to come at the interim announcement.
Good spot CT. Twitter appears to be the media of choice for APC these days and certainly cheaper than RNS'. It is a good testimony to APC/EEV that Bloomberg hold them in such high esteem as to use them as the medium for energy efficiency reports. And this coupled with the recent BAE recognition certainly has APC punching above its weight. IMHO if management can nurse the MC back above �20M then we should start to see some serious II's who invest in similar specialist component distribution companies start to build stakes. The specialist distribution market is not well served in the UK and APC are well positioned to benefit from that with blue chip lines from around the world seeking representation in the UK as we have seen over the years. The BAE recognition is the best sales tool APC have when courting these companies and I would not be surprised if more appointments were just around the corner.
Hi CT. Thanks for your thoughts re expectations for the interims. I expect that the GM should improve with Sterlings strength against the USD although 37% sound s a bit optimistic. I would be disappointed if the profit figure only increased by the 8-12% you mentioned especially in the light of several beefy new LED contracts announced and completed before the end of February. I agree with you over the cash issue especially if the revenue is higher than anticipated and of course the cost of acquiring FBM. Overall I am very optimistic for a good set of figures given the encouraging board comments before and after the AGM.
are cited as one of the major growth areas targeted by APC. They talked about it at the AGM and agin this morning in the RNS. I do not know if this is a recent post onto the APC website but certainly worth a read. http://apcplc.com/projects/elsys-environmental-sensors-just-job-facilities-management-company/
Nice to see an official follow up to the AGM, very much in line with Malcolm's report. Never did understand the rational behind announcing announcement dates but assume they will be 'in line with company expectations,' whatever they may be. A very tired question but does anyone have any idea what we are aiming at this year?
Agree Cockney, it really does have a good feel to it now. Positive AGM according to Malcolm and good twitter feed so surprising sellers around. When the interim trading statement comes out it should be very positive IMO so why sell now unless to crystallise losses before the end of the tax year.?
Thank you Malcolm, terrific news. I see that they have just announced on twitter a new lighting contract. https://twitter.com/APCTechGroup/status/968157171845419008
Thanks for the report Malcolm. Was there any evidence of blue sky opportunities on the horizon? Any mileage left in the LED Lighting?
Distressed seller it may be but the brokers must be very confident of good news tomorrow otherwise the Bid would have dropped by now. It says to me they need stock and a big pay day not far away.
Take a look at these 'Latest News' releases from the APC website. LED lighting at the NEC with monster energy saving costs and IOT sensor modules installed at FM companies. Looks to be a really good opportunity with ground breaking product. Hopefully more news to come from the AGM on Thursday and agree with CT, 9p a distinct possibility by weekend if current trading is signalled to be above expectation. http://apcplc.com/projects/elsys-environmental-sensors-just-job-facilities-management-company/ http://apcplc.com/projects/birmingham-nec-gets-energy-saving-back-house-lighting-upgrade/
Good summation CT. As you imply nothing goes up in a straight line but I doubt anyone buying over the last month has done so looking for a quick buck. Over the past couple of years APC has patiently gone about its business with IMHO no regard for the SP so definately not a stock for day traders. Many times you and I have written about the 10p glass ceiling and whilst this still remains I see no reason why this cannot be smashed in the short term if the AGM maintains the upbeat trend of the past week.
Three RNS in one week! Is this really super cautious APC? Things must really be rocking in the camp. Quite a few companies in the UK involved in satellite manufacture and space exploration so 3D looks like a very good addition to the line card. There is also news on the APC website of a lighting upgrade contract at Northumbria universities sports centre won through their facilities management company CBRE. CBRE are one of the largest facility management companies in the world and this will hopefully lead to many more lighting contracts with APC. Last year it was announced that the facility management sector was being targeted by APC as a major growth opportunity and I suspect it is no surprise that the new Chairman came out of this industry and also one of their large individual private investors. As you say Jim, onwards and upwards!
Fred: You can register for free on ADVFN - APC bulletin far more active these days than this one. Been watching it for a few years but not a contributor. Glasshalfull12 Jan '18 - 00:08 - 753 of 753 0 2 0 Good evening everyone, Before I comment on today�s acquisition news, I think it worth reiterating zipstuck�s comment from the post above regarding current trading. Reminder that the final paragraph of today�s RNS confirmed a positive start to FY18. So firstly congratulations due to Richard, Tony & the APC team for continuing the momentum evidenced from their recent presentation & FY17 results. On the acquisition, well First Byte Micro appear to be an excellent fit with the existing APC Locator business & the net payment of �500k for a business delivering �200k PBT appears a very good price as cockerhoop also mentions in an earlier post. The RNS indicated that PBT was �193,541 in 2016 & the company expected to see profit growth in 2017, so perhaps slightly over �200k PBT in 2017? Importantly it confirms to the market that APC are now firmly back on an even keel & entering a growth phase, a point emphasised by the CEO via the statement & further confirmation of focus on the 3 main growth drivers that I covered in early December 2017 (via post 741). At the time I said, The company confirmed they are looking at small bolt on acquisitions that would allow them to increase both their product base (or supplier relationships) & present an opportunity to service new customer bases. Such small deals would also present them cross-selling opportunities & ability to remove costs. So increasing revenue & earnings enhancing at a stroke! Well it certainly looks like APC pulled that off with todays acquisition. I finished my December post by indicating that I was excited to see what APC would achieve in the months & years ahead. Nothing has changed and today�s news reinforces this view especially in light of the positive start to FY18 & details of the First Byte acquisition. Kind regards, GHF