21 Sep 2017 07:00
21 September 2017
APC TECHNOLOGY GROUP PLC
("APC" or the "Company")
Trading Update
The Board of APC (the "Board") is pleased to provide the following trading update for the full year to 31 August 2017.
Results to 31 August 2017
The unaudited full year results to 31 August 2017 are expected to show revenue of £15.6m (2016: £17.9m), gross profit of £5.5m (2016: £6.4m), an operating profit before interest, amortisation, depreciation and exceptional costs of £0.8m (2016: £0.3m) and a profit before tax ("PBT") in the region of £0.2m. This will be the Group's first PBT since the year ended August 2014.
These results reflect the commitment of the Board to deliver a profitable business and to concentrate on activities where the Group can create value and upon which APC can grow.
Net debt at the end of the year is expected to be £3.1m (2016: £3.2m) of which £2.5m (2016: £2.7m) related to amounts owed under the Group's £6m invoice finance facility with ABN Commercial Finance.
Business Strategy
For three decades APC has built long-standing customer relationships in hard-to-penetrate market segments including UK defence, aerospace and oil and gas. For the last ten years, the company has also enjoyed growth within financial, commercial real estate and industrial markets.
Acting as a UK marketing, sales and distribution portal for best-in-class rest of world component and system manufacturers, APC creates value for its technology partners and end-customers through its market and product knowledge, engineer-to-engineer technical sales expertise and extensive experience managing import and logistics requirements.
Brexit uncertainties serve to enhance APC's role in the supply chain providing a crucial and stable link between rest of world technology partners and UK manufacturers.
The Board believe that APC now has an impressive range of technologies that sit in markets through which the Group can drive profitable organic growth as a focused technical sales and distribution business. Further growth will also come from extending the range of technologies through the addition of new technology partners.
Richard Hodgson, Chief Executive of APC, commented:
"It is greatly satisfying that last year's restructuring and realigning of the business has resulted in the first profit since 2014. The business is now focussed on its core strengths in the design, specification and distribution of high-value, high-growth electronic components, products and systems and faces the future with energy and confidence."
Enquiries
APC Technology Group PLC +44 (0) 330 313 3220
Richard Hodgson, Chief Executive www.apcplc.com
Michael Thompson, Finance Director
Stockdale Securities Limited (Nominated Adviser and Broker) +44 (0)20 7601 6100
Mark Brown / Antonio Bossi / Edward Thomas