21 Jul 2009 07:00
Date: 21 July 2009
On behalf of: Advanced Power Components Plc ('APC', 'the Group', or 'the Company')
Embargoed until: 0700hrs
Advanced Power Components Plc
Trading Update
Advanced Power Components Plc (AIM:APC), the UK and specialist distributor and manufacturers' representative of electronic components, today provides a trading update for the year ending 31 August 2009.
Following the Company's interim results announced on 28 April 2009 and change in responsibilities within the finance function, the Board has completed a detailed review of its financial systems and controls and has undertaken a significant internal reorganisation to reduce overheads. The reorganisation has resulted in a one-off charge being incurred that will adversely impact the Company's net profit before tax for the full year by approximately £140,000, but which, once fully implemented, is expected to generate cost savings rising to approximately £40,000 per month from 1 September 2009.
In addition, in conjunction with the Company's auditors, Reeves and Neylan, the Board has completed its detailed review of the Group's processes and management reporting systems and has brought forward its review of year end provisioning, specifically including prudent bad debt and slow moving stock provisions. As a result of these reviews, the Company expects to incur a further charge to the profit & loss account of £250,000 in its year end results.
Accordingly, in the results for the full year ended 31 August 2009, the Company anticipates reporting a loss before tax in the region of £500,000.
The Board believes that the steps taken to reduce the cost base will place the Group in a much improved position to manage the challenges and opportunities facing it and provide a platform for an immediate return to monthly profitability, which the Board expects will continue into the next financial year.
Enquiries:
| Advanced Power Components plc Mark Robinson, Chief Executive Officer | 01634 290588 www.apc-plc.co.uk |
| Redleaf Communications Samantha Robbins / Anna Dunkin / Henry Columbine | 020 7566 6700 apc@redleafpr.com |
| Strand Partners | 020 7409 3494 |
| James Harris/ Angela Peace | |
| St Helen's Capital | 020 7628 5582 |
| Ruari McGirr |
About Advanced Power Components
APC plc is a leading specialist distributor of electronic components, comprising eight areas of activity: