APC Technology Group PLC Operational Review Update (6188E)
November 05 2015 - 2:00AM
UK Regulatory
TIDMAPC
RNS Number : 6188E
APC Technology Group PLC
05 November 2015
05 November 2015
APC Technology Group PLC
("APC" or the "Group")
Operational Review Update
Further to the announcement made on 18 August 2015, the Board is
pleased to announce that we have made significant progress with the
operational review. The objective of this review has been to focus
our efforts on our profitable and cash generative products and
services and by doing so to deliver a stable platform for growth
for shareholders.
For the component distribution and water businesses, the focus
is on ensuring that the profitable success achieved within these
divisions is supported and built upon. Within these businesses we
have over 1,500 customers who regularly buy from us. These long
standing relationships produce a high level of recurring revenue,
which provides stability from which we can grow. Many of our
customers are leading UK business and market leaders and in most
cases there is opportunity for us to provide a much greater depth
and breadth of product offering. The profitable growth potential
within our existing business is therefore significant and can come
from customers and areas where we already generate revenue.
Our electronic components, for which we have exclusive
distribution agreements, are designed into long running programmes
in aerospace, defence and, more latterly, the rapidly growing
market for the Internet of Things and are sold to internationally
renowned manufacturers.
In the last 12 months our water hygiene engineers serviced over
2,500 properties. Our remote monitoring technology has seen
significant growth and already has 14,000 sensors and probes
enabled for monitoring with nearly 1,000 gateways configured on
active systems. Our recently announced Compliance Online water
quality monitoring technology already has over 2,000 outlets
monitored.
The detailed review of Minimise Group has identified a number of
areas for further action by the Board to ensure that the customer
concentration, legacy supplier contracts and extended working
capital issues highlighted during the past 12 months are further
ameliorated and that efforts within the Minimise Group are focused
on customer-led initiatives which can be profitably delivered by
the Group within its core markets.
Several actions have already been taken to support these
objectives:
-- A thorough review of sales and delivery processes across the
business has resulted in the introduction of detailed KPIs which
are monitored, reviewed and acted upon on a weekly basis;
-- Supplier relationships and pricing have been reviewed,
renegotiated and improved where appropriate; and,
-- Non-profitable, stand-alone products or services are being ceased or reorganised.
The Board is mindful of the Group's working capital resources as
we re-focus the business but we are very pleased to announce that
we have extended our GBP6m invoice finance facility with ABN
Commercial Finance out to 31 December 2016. Central corporate costs
have also been reviewed and these will be kept to a minimum.
The Board believes that the measures already being implemented
will provide a stable platform for profitable growth through both
margin improvement and transactional sales delivery. Capitalising
on the potential of existing products and services into existing
customers will be our primary focus for the rest of this fiscal
year.
Longer-term we are confident of the growth opportunities in the
markets in which we operate and with the products and expertise at
our disposal. We will continue to build our solution sales
capability to take full advantage of them.
Leonard Seelig, Chairman of APC Technology Group
"Under the guidance of Richard Hodgson, we have undertaken a
comprehensive review of the operations of the Group.
A range of specific actions intended to improve profitability
and enhance growth have been initiated. We are optimistic that this
will result in a Group more focused on realising the potential of
our profitable businesses, which will in turn be targeted on
delivering the Group's technology, products and solutions to our
established customer base.
The Board would like to thank staff and shareholders alike for
their patience in recent weeks and look forward to the future with
optimism."
Enquiries:
APC Technology Group PLC 01634 290588
Leonard Seelig, Chairman www.apc-plc.co.uk
Richard Hodgson, Chief Executive
Officer
Cantor Fitzgerald Europe Limited
(Nominated Advisor and Broker) 020 7796 8800
Andrew Craig / Will Goode (Corporate Finance)
Redleaf Communications (Financial
PR) 020 7382 4730
Rebecca Sanders-Hewett / David Ison / Susie Hudson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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