14 Oct 2010 07:00
Date: | 14 October 2010 |
On behalf of: | Advanced Power Components PLC ('APC' or 'the Company') |
Embargoed until: | 0700hrs |
Advanced Power Components plc
Trading Update
Advanced Power Components (AIM: APC), the UK specialist distributor and manufacturers' representative of electronic components, is pleased to provide a trading update for the twelve month period ended 31 August 2010.
For the period under review, APC expects to report that revenues and pre-tax profit for the year will be in line with market expectations.
This strong performance results from APC's prudent cost cutting measures, along with the Company's increased focus on technical sales, which has resulted in a number of additional promising opportunities being pursued.
In addition to the return to profitability the Company has continued to strengthen its working capital management both in terms of stock and debtor control and this has resulted in a net cash inflow from operating activities (i.e. excluding investing and financing activities) in excess of £750,000 (un-audited).
As previously announced, a review of the Company's accounting systems and processes was undertaken towards the end of 2009. A further evaluation of the control procedures for preceding years has been subsequently undertaken in conjunction with the Company's auditors Reeves & Co LLP. As a result of this analysis of prior years, an error in the inventory control system was identified. In accordance with International Accounting Standard 8 (Accounting Policies, Changes in Accounting Estimates and Errors), which requires that prior period errors are corrected in the comparative information presented in the financial statements for that subsequent period, the 2009 accounts will be revised to correct an overstatement of inventory by £261,000. APC expects to release its preliminary results for the year ended 31 August 2010 in early December 2010 and will include the restated comparative information at that time. There will be no impact from this adjustment on the results for the year ended 31 August 2010 or going forward.
Current trading is stable and despite the continuing economic uncertainty, current year order intake is at a healthy level. The actions taken to strengthen the Company's operations, balance sheet and the strategy of investing in additional sales resources and the imop product range have resulted in an improved flow of opportunities and, whilst at this stage, the timing and size of the opportunities is unclear, the Board continues to be optimistic about the Company's future prospects.
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Enquiries:
Advanced Power Components plc | 01634 290 588 |
Mark Robinson, Chief Executive Officer | www.apc-plc.co.uk |
Rob Smith, Finance Director |
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Redleaf Communications | 020 7566 6727 |
Henry Columbine / Lucy Salaman | apc@redleafpr.com |
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Strand Hanson Limited | 020 7409 3494 |
James Harris / Angela Peace |
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Astaire Securities | 020 7448 4400 |
Simon Miller |
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Notes to Editors:
About Advanced Power Components
APC plc is a leading specialist distributor of electronic components, comprising eight areas of activity:
¡ APC Hi-Reldistributes a variety of specialist electronic components into applications where component reliability is of paramount importance. Hi-Rel's franchised product lines include power semiconductors, power supplies, memory, wound and high voltage components.
¡ APC Locator is the number one solutions provider for obsolete and hard-to-find parts, with 25 years' experience in the industrial and defence/aerospace markets across Europe.
¡ APC Hero has a specialist team of Product Managers ready to assist with your next design, our key areas include LEDS/LAMPS, drivers, wireless devices and modules, Zigbee, specialist sensors and crystals (plus fast turn around on programming).
¡ APC Go!provides a kitting and materials management service to companies wanting to outsource non core activities, offering services ranging from material procurement to full production management.
¡ APC Displays+provides dedicated technical and commercial support for a wide range of LCD`s, standard, custom, TFT, e-signage, character, graphics, driver boards, IC`s, single board computers and all related connectivity.
¡ APC Novacom is a distributor and manufacturers' representative for RF and microwave frequency electronic components. The business is managed by a team of technical specialists with many years experience in the RF and Microwave industry.
¡ APC Contech is a distributor of specialist data input devices for industrial, broadcasting and medical sectors providing technically advanced solutions for specific application areas.
¡ APC KVAR is a manufacturer and distributor of power saving equipment which optimises the performance of electrical motors, leading to reduced energy consumption and cost savings.