APC Technology Regulatory News (APC)

15 May 2007 07:02

Advanced Power Components PLC15 May 2007 Date: 15 May 2007On behalf of: Advanced Power Components plc ("APC" or "the Company")Embargoed until: 0700hrs Advanced Power Components plcInterim results for the six months ended 28 February 2007 Advanced Power Components plc, a specialist distributor and manufacturers'representative of electronic components, is pleased to announce its interimresults for the six months ended 28 February 2007. Financial Highlights: • Pre-tax profit, after exceptional costs and goodwill, increased 700% to £208,400 (1H 2006: £26,000), reflecting the contribution of Hero Electronics acquired in May 2006, a focus on higher margin business and tight cost controls• Revenue increased by 65% to £4.3 million (1H 2006: £2.6 million)• Pre-tax profit, before exceptional costs and goodwill amortisation, of £276,000• Share buy-back approved by shareholders and completed in December 2006, reducing the issued share capital to 20,136,757 Operational Highlights: • Representative agreements signed with VPT Inc, Nanotron Technologies GmbH, Radiopulse and Adtron Corporation• Amanda Parker appointed to the Board as Sales & Marketing Director in September 2006 Commenting on the results, Mark Robinson, Chief Executive of APC, said: "Our aim is to become the leading specialist, design-in distributor in the UKand we are actively pursuing opportunities to consolidate our position in themarket. Trading during the first half has continued the momentum of last yearand we are confident of the prospects for the full year." Enquiries: Advanced Power Components plc 01634 290588Mark Robinson, Chief Executivewww.apc-plc.co.uk Seymour Pierce 020 7107 8000David Newton Redleaf Communications 020 7822 0200Samantha Robbins / Duncan McCormick CHAIRMAN'S STATEMENT I am pleased to report the interim results for the Company for the half yearended 28 February 2007 which, as expected, proved to be a period of continuingprogress with significant increases in both sales and profit. Sales for the first six months were £4,276,400 with a pre tax profit of£208,400, after exceptional costs totalling £25,000 relating to the sharebuyback and goodwill amortisation of £42,600. This compares favourably withsales of £2,606,000 and a pre tax profit of £26,000 (as restated in accordancewith FRS 20) during the same period last year. These improvements reflect the acquisition of Hero Electronics in May 2006combined with our continued focus on markets and opportunities where ourtechnical, design-in approach to sales is of considerable value. Following approval by shareholders, the purchase of 6,577,756 ordinary shares,representing 24.62% of the issued share capital of the Company, from ThirdAdvance Value Realisation Company Limited, was completed in December 2006 andthese shares were subsequently cancelled. This leaves the Company betterpositioned to use shares as consideration for future acquisitions, or to raisefunds to finance acquisitions, without significant dilution to our shareholders. During the period further investment towards streamlining administrative andoperating procedures continued. This is consistent with our objective ofimproving efficiencies and capitalising on the potential created as we continueto pursue our strategy of achieving earnings-enhancing organic and acquisitivegrowth. The last six months has seen APC continue to build its product range by signingagreements with several high-profile manufacturers, including VPT Inc, aninnovative leader in providing power distribution products for military,avionics, aerospace and other high reliability markets; two wireless solutionsproviders, Nanotron Technologies GmbH and RadioPulse; and Adtron Corporation,the US-based leading data storage company providing application-specificsolutions. The market conditions remain good for our products and services, which togetherwith our plans for expansion, indicate continuing profitable growth for thesecond half of our current financial year and into the next. R. F. Thorne, O. B. E.Chairman 15 May 2007 Consolidated Profit and Loss Account Half year to Half year to Year to 28 February 2007 28 February 2006 31 August 2006 (unaudited) (unaudited) (audited) Restated Restated Note £000 £000 £000TurnoverContinuing operations 4,276 2,606 5,541Acquisitions - - 908 2 4,276 2,606 6,449 Operating Profit 222 14 153 Net Interest (payable)/receivable (14) 12 18 Profit on ordinary activities 208 26 171before taxation Tax charge on profit on ordinary - - (20)activities Profit for the period 208 26 151 The Group has no recognised gains or losses other than those included in theprofit and loss account. There is no difference between the historical cost results and the figures asstated above. Earnings per share 0.9p 0.1p 0.6p None of the share options give rise to a dilution in the earnings per share, astheir performance conditions have not yet been fulfilled. Earnings per share is based on theweighted average number of sharesin issue in the respective periods,as follows : 24,206,971 26,114,513 26,176,979 During the period the Company purchased and cancelled 6,577,756 of its shares,as a result of which there were 20,136,757 shares in issue at 28 February 2007. Restatement of prior periods' results The Company has adopted the provisions of Financial Reporting Standard FRS 20 inrespect of outstanding share options. As a result an amount of £15,000 has beencharged to the profit and loss account in the period. In addition, FRS 20requires that a retrospective charge be applied for relevant earlier accountingperiods. Accordingly the profit and loss account for the comparative periods hasbeen restated to include the appropriate charges, £7,000 for the half year to 28February 2006 and £14,000 for the full year to 31 August 2006, and the profitand loss account brought forward at 1 September 2005 has been restated toinclude a charge of £13,000. Consolidated Balance Sheet 28 February 28 February 2006 31 August 2007 (unaudited) 2006 (unaudited) Restated (audited) Note Restated £000 £000 £000 Fixed assetsIntangible assets 766 305 808Tangible assets 229 181 253 995 486 1,061 Current assetsStock 1,041 533 911Debtors and prepayments 2,190 1,026 1,488Cash at bank and in hand 4 504 829 549 3,735 2,388 2,948 Creditors: Amounts falling due (3,481) (949) (1,663)within one year Net current assets 254 1,439 1,285 Total assets less current 1,249 1,925 2,346liabilities Creditors: Amounts falling due in - - (235)more than one year Net assets 1,249 1,925 2,111 Capital and reserves Called up share capital 403 522 534Share premium account - 2,370 2,412Share option valuation reserve 42 20 27Profit and loss account 804 (987) (862) Total equity shareholders' funds 3 1,249 1,925 2,111 Consolidated Cash Flow Statement Half year to Half year to Year to 28 February 28 February 2006 31 August 2007 (unaudited) 2006 (unaudited) Restated (audited) Restated £000 £000 £000 Net cash (outflow)/inflow from operating (337) (53) 22activities Returns on investments and servicing of finance:Interest (paid)/ received (14) 12 18 Taxation - - (7) Capital expenditure and financial investment:Payments to acquire tangible fixed assets (17) (7) (68) Acquisitions and disposalsPurchase of subsidiary undertakings - - (1,346)Cash acquired with subsidiary undertakings - - 1,000Net cash outflow from acquisitions and - - (346)disposals Net cash outflow before management of (368) (48) (381)liquid resources and financing Re-purchase of shares (1,085) - -Bank short-term loan facility 1,408 - -Sale of short-term investments - - 54Net cash outflow from financing - - (1) Decrease in net cash (45) (48) (328) Reconciliation of operating profitto net cash (outflow)/inflow fromoperating activitiesOperating profit 222 14 153Depreciation 41 24 57Profit on disposal of fixed assets (1) - -Amortisation of goodwill 43 21 54Share option valuation charge 15 7 14Increase in stocks (130) (85) (231)(Increase)/decrease in debtors (702) (104) 6Increase/(decrease) in creditors 175 70 (31)Net cash (outflow)/inflow from operating (337) (53) 22activities Notes to the Interim Report 1. Accounting Policies The profit and loss account, balance sheet and cash flow statement have beenprepared on a basis consistent with the statutory accounts for the year ended 31August 2006. 2. Analysis of turnover by geographical destination Half year to Half year to Year to 28 February 28 February 31 August 2007 2006 2006 (unaudited) (unaudited) (audited) £000 £000 £000UK 3,727 2,147 5,484Europe and other 455 383 777North America 94 76 188 4,276 2,606 6,449 3. Reconciliation of movements in shareholders funds Half year to Half year to Year to 28 February 28 February 31 August 2007 2006 2006 (unaudited) (unaudited) (audited) £000 £000 £000Opening shareholders' funds 2,111 1,892 1,892Share option valuation reserve 15 7 14Issue of new shares during the year - - 54Cancellation of share premium account (2,412) - -Corresponding increase in retained earnings 2,412 - -Purchase of ordinary shares (1,085) - -Profit for the period 208 26 151 1,249 1,925 2,111 On 25 October 2006 the High Court approved the cancellation of the Company'sshare premium account. This reduction was applied in eliminating the accumulateddeficit on the profit and loss account. On 22 December 2006 the Company purchased and cancelled 6,577,756 of its sharesat a price of 16.5 pence per share. 4. Analysis of net funds At At 28 February 31 August 2007 (unaudited) 2006 Cash flow (audited) £000 £000 £000Cash, comprising current accounts and 504 (45) 549overnight depositsBank short-term loan facility (1,408) (1,408) -Finance lease (14) 1 (15) (918) (1,452) 534 5. Basis of preparation of interim report This interim report for the six months ended 28 February 2007 was approved bythe directors on 15 May 2007. This interim report is neither audited norreviewed and does not constitute statutory accounts within the meaning ofSection 240 of the Companies Act 1985. The 2006 full year figures are extractedfrom statutory accounts for the year ended 31 August 2006 (as restated), whichinclude an unqualified audit report and have been filed with the Registrar ofCompanies. The comparative figures for the first six months of 2006 are takenfrom the interim report for that period (as restated). 6. Distribution of interim report A copy of this interim report will be distributed to all shareholders.Additional copies are available on application to the Company's registeredoffice: Advanced Power Components plc47 RiversideMedway City EstateRochesterKentME2 4DP. This information is provided by RNS The company news service from the London Stock Exchange