APC Technology Regulatory News (APC)

31 January 2014

APC Technology Group PLC("APC" or the "Company")

AGM Statement

At its Annual General Meeting that takes place later today, the Company will make the following statement concerning current trading:

"The Group has seen a continuation of the improved trading conditions experienced in the second half of 2013 in its electronic components distribution businesses, marketed under Advanced Power Components, and continued strong momentum in its clean technology businesses, marketed under Minimise Energy.

The electronic components distribution business has had a good start to the year, and has secured a number of notable order wins from new and existing clients in its target market areas. These include follow-on orders from BAE Systems and a new contract from Amplifier Technology (a subsidiary of Vislink PLC) which manufactures radio frequency high power amplifiers for specialist markets including defence and homeland security. Whilst the electronic components industry is relatively mature, we are able to differentiate ourselves from our competitors through our focus on supplying specialised, franchised products to applications where customers value the high-quality technical knowledge provided by APC's technical sales staff.

Our Minimise Energy businesses also continue to experience healthy growth as an increasing number of customers look to reduce their energy consumption and carbon dioxide emissions through the installation of our products. The growth delivered in the last financial year was underpinned by the contract with Wm Morrisons Supermarkets PLC and we are pleased to report that there has been a continuation of this partnership in the current financial year as demonstrated by the announcement of the latest contract win on 28 January 2014. We are also pleased to confirm that a number of relatively high profile customers are now placing regular orders with Minimise Energy, thereby steadily expanding the customer base across different market sectors.

Our investment in Invisible Systems Limited has been pivotal in winning new customers. We have a reliable product and technology platform that identifies energy consumption patterns and areas where savings can be made. This capability has enabled us to work with customers to target and deliver energy savings and provide on-going energy consumption monitoring to verify the savings achieved.

We can also report that we continue to make progress in terms of expanding the range of products and technologies that we offer and in the complexity of energy related services that we provide, both of which have the potential to generate future profitable growth. This is consistent with the Board's strategy of developing the Minimise Energy brand to be synonymous with energy efficiency solutions as opposed to being limited by association with any individual product or technology.

We are also pleased to confirm that our entry into the North American market has yielded initial, small contract wins that we are working hard to deliver and then develop these relationships further. Whilst we do not expect a significant contribution in the current financial year from this investment, we are encouraged by our initial successes and remain confident that the North American market holds substantial potential for the Group.

In conclusion, the Group has made a good start to the new financial year across each of its business lines and the Board are confident that further progress will be made during the balance of the year.

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