APC Technology Regulatory News (APC)

11 Mar 2009 07:00



Date: 11 March 2009 

On behalf of: Advanced Power Components plc ('APC' or 'the Company') 

Embargoed until: 0700hrs 

Advanced Power Components plc 

Trading Update 

The Board of Advanced Power Components plc (AIM: APC), a specialist distributor and manufacturers' representative of electronic components, today provides a trading update for the six months ended 28 February 2009. 

In the Company's announcement of annual results issued on 27 January 2009, the Company stated that the rapid and significant depreciation of the value of sterling against the US Dollar and the Euro had a considerable adverse impact on an otherwise strong operational performance and that, as a result, the likely effect was that profits will be reduced to a small loss in first half of 2008/9. The Company is in the final stages of implementing measures to hedge its exchange rate exposure in the future.

Since that announcement it has become apparent that certain aspects of the management information in relation to some specific overheads, and on which forecasts for both the half year and full year were based, were inaccurate.

In addition, a number of shipments scheduled to be made at the end of January and in February have been delayed, either held pending the renegotiation of pricing with customers to account for movements in exchange rates or because of unassociated delays in shipments from suppliers outside the Company's control. The Board is confident that all delayed shipments will be made in the third quarter of this financial year. 

Taking into account the additional overheads and the shipment delays referred to above, the Board now expects the Company to record a loss in the first half of the financial year in the region of £300,000, and expects to break even in the full year. 

The Company, in conjunction with its auditors, is carrying out a review of its management information systems and finance function and will update the market in the near future.

In contrast to the disappointing issues set out above, the Company has been successful in securing new orders in the first half of the current financial year. As a result, the order book is higher than at any point since the Company was restructured in 2003. Accordingly, notwithstanding the above, the Board remains confident about the Company's future prospects.

- Ends - 

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