APC Technology Regulatory News (APC)

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

Trading Statement

· Half Year Group sales anticipated to be up by more than 30% and profit before tax anticipated to be substantially ahead of prior year

· Continued expansion of customer base

· Product offering expanded through the creation of Minimise Solutions Limited and Minimise Finance Limited

APC Technology Group PLC (AIM: APC), is pleased to provide an update on its current trading and anticipated results for the six months ended 28 February 2014.

The first half of 2014 has seen a continuation of the progress made in 2013. The Group is expected to report sales of approximately £12.1m (2013 H1: £9.2m) and to declare a profit before tax of at least £700,000 (2013 H1: £47,000) when it publishes its interim results at the end of May this year. The Group's energy efficiency focused businesses, trading under the Minimise brand, experienced continued growth in revenue, both through orders from existing customers, in particular Wm Morrisons Supermarkets PLC, and an increasing number of orders from new customers, including Network Rail. As a result of efforts to expand the customer base, the pipeline of new potential business has also grown significantly this year with notable progress being made with a number of the blue chip organisations across a range of sectors in both the UK and North America.

Related to this, the Group has continued to expand its energy efficiency focused product offering and has recently established an energy efficiency consulting business, Minimise Solutions Limited, which will help customers develop and then implement an effective energy management strategy. In addition, the Group can confirm that it is in advanced discussions to acquire a majority interest in a small, specialist, funding business with the view to offering customers turnkey financing solutions for energy efficiency projects through a specially created subsidiary, Minimise Finance Limited. A further announcement will be made in due course. It is anticipated that both of these businesses will provide additional routes to market and the opportunity for the Group to broaden the scope of engagement with key customers, which will further develop the recurring revenues that the Group is now beginning to create.

APC's electronic components business continues to trade profitably albeit on a marginally lower turnover. That said, a number of recently awarded contracts from major customers has resulted in an increased order book, which helps to underpin the business prospects for this division for the second half of the year.

The Group's associate company, Invisible Systems Limited (ISL), successfully developed relationships with a number of new customers during the period both through Minimise and directly. In particular, it has secured business with FastNet, a subsidiary of Telcom SA Limited, which is expected to lead to increasing revenues during the current financial year.

The Group anticipates announcing its interim results on 30 May 2014.

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