15 Mar 2013 07:00
Date: | 15 March 2013 |
On behalf of: | Advanced Power Components PLC ('APC' or 'the Group') |
Embargoed until: | 0700hrs |
Advanced Power Components Plc
("APC" or the "Group")
Trading Statement
§ Further progress in cleantech sector with Minimise Limited trading well
§ Traditional distribution business broadly in-line with Management expectations
§ Continued investment in Minimise Energy and QV Controls expected to yield results in the near term
Advanced Power Components plc (AIM: PLC), a specialist distributor and manufacturers' representative of electronic components and smart, energy saving products, is pleased to provide an update on current trading and results anticipated for the half year ended 28 February 2013.
The Group has made substantial progress during the first half of the financial year, most significantly, in its efforts to generate meaningful growth in the cleantech sector. It is expected that the half year results, due to be released in mid-May, will show sales and profits ahead of the corresponding period in the prior year.
The Group's subsidiary, Minimise Limited, has completed the installation of low energy lighting projects for a number of customers and received a significant follow on contract worth £4.1 million from a major UK supermarket chain. Although phase 1 of the roll out of this particular project was successfully completed in the first half, it should be noted that the vast majority of the second and third stages will be delivered from March onwards and therefore revenues will be heavily skewed toward the second half of the year.
The Group's other cleantech businesses, QV Controls Limited and Minimise Energy Limited, continue to develop opportunities and the aggregate investment in the sales and marketing activities of these companies was increased in the period. The Board is confident that this investment will start to yield results in the near term as a number of opportunities move toward the deployment phase.
Despite the well documented weakness of the UK's electronic components distribution market, sales and profits in APC's traditional distribution business are broadly in-line with management expectations, though trading conditions are expected to continue to present challenges for the foreseeable future.
The Group's net debt has increased since the year-end due to the working capital requirements of Minimise Limited and the investment being made in QV Controls and Minimise Energy but the Board expects that the cleantech sector will continue to grow substantially faster than the general economy and accordingly, intends to maintain or increase the Group's investment in this area to ensure that it is well positioned to maximise its return from this opportunity.
Enquiries:
Advanced Power Components plc | 01634 290588 |
Mark Robinson, Chief Executive Officer Rob Smith, Finance Director | www.apc-plc.co.uk |
Strand Hanson Limited | 020 7409 3494 |
James Harris / Angela Hallett | |
Northland Capital Partners Limited | 020 7448 4400 |
David Johnson / John Howes | |
Redleaf Polhill | 020 7566 6720 |
Rebecca Sanders-Hewett / David Ison | apc@redleafpolhill.com |
Notes to Editors:
About Advanced Power Components
Advanced Power Components plc (APC) is one of the UK's leading distributors of specialist electronic components and a provider of technologies developed to reduce energy consumption or generate electricity more sustainably.
Since incorporation in 1982, APC has developed long-standing relationships with manufacturers of specialist electronic components and with customers who put significant value on our deep understanding of the challenges of their individual markets, technical expertise and attention to detail. Markets include defence, aerospace, space, transportation, medical and industrial sectors. Products are wide ranging in their complexity and in their application and are sold through a number of semi-autonomous teams. Each team focuses on specific technologies or markets but are true to the Company's central business strategy of adding value in the supply chain.
Through Minimise Energy, the Group promotes a range of technologies developed to reduce energy consumption and associated carbon emissions associated with traditional offerings. These products are either sold individually, through subsidiaries Minimise Limited and QV Controls Limited or may be combined to provide an integrated, multi technology solution to the challenge of improving the energy efficiency of an entire organisation.