APC Technology Group PLC Trading Update (6248Q)
December 01 2016 - 2:00AM
UK Regulatory
TIDMAPC
RNS Number : 6248Q
APC Technology Group PLC
01 December 2016
1 December 2016
APC TECHNOLOGY GROUP PLC
("APC" or the "Company")
Trading Update and Full Year Results Announcement Date
The Board of APC (the "Board") is pleased to provide the
following trading update for the first quarter of the current
financial year ending 31 August 2017 and on results for the full
year to 31 August 2016 which will be announced on 14 December
2016.
First quarter 2016/17 update
As previously announced, the Company completed the sale of its
water hygiene and treatment division in early October. Along with
the resultant cash injection and reduction in debt and operational
gearing, this disposal enables the Group to focus fully on the
design, specification, and distribution of specialist electronic
components and systems, lighting technologies, and connectivity
products. The continuing business draws on the historic strengths
of the Group in technology distribution with the added benefit of
the growth drivers of lighting and connected systems.
The core APC component distribution business achieved record
bookings in the first quarter of GBP4.1m (Q1 2016: GBP3.5m).
Particularly encouraging was that these orders were achieved with
customers and manufacturers with whom the Group continues to enjoy
long term relationships.
Also in the first quarter, the refocused and profitable lighting
technologies business completed delivery of a GBP1.0m order of
specialist lighting to major high street food and clothing retailer
and the first GBP250,000 of a GBP2m lighting programme for a major
financial institution's real estate portfolio. It also continued to
build its distributed lighting range with the first small orders
received.
The Group has also continued to proactively align the size and
cost of continuing operations with expected revenues, further
reducing headcount by 16% since the year end, from 91 to 76. This
will allow the business to invest in new sales resource to drive
growth.
The Board is pleased to report revenues of GBP4.5m for the first
quarter. The stability of the business underpins the Board's
confidence in the performance of continuing operations and a
profitable outlook for the year.
Results to 31 August 2016
The full year results to 31 August 2016 from continuing
operations are expected to show revenue of GBP17.9m (2015:
GBP22.8m), gross profit of GBP6.4m (2015: GBP6.0m) and an operating
profit of GBP0.3m (2015: GBP1.4m loss). These results reflect the
commitment of the operational review undertaken earlier in the year
to deliver a profitable business and to concentrate on activities
where the Group can create value. This is reflected in the increase
in gross profit margin to 35.8% (2015: 26.3%).
These results are before expected exceptional costs and loss
from discontinued operations of GBP12.8m. These largely non-cash
costs are attributable to the restructuring of the Group, the
cessation or sale of non-core activities, and the non-cash
write-off of goodwill and other intangible assets.
The cash impact of loss for the year is expected to be GBP4.6m,
of which GBP4.2m related to exceptional costs and discontinued
operations, and was funded by GBP2.3m of equity, GBP0.3m sale of
investments, and GBP2.0m increase in net debt.
Net debt at the end of the year is expected to be GBP3.2m of
which GBP2.7m related to amounts owed under the Group's GBP6m
invoice finance facility with ABN Commercial Finance which has been
extended to December 2017.
Richard Hodgson, Chief Executive of APC, commented:
"I am very pleased with the solid start we have made to this new
financial year, with the restructuring behind us and with a
realigned business focused on our core competency of design,
specification, and distribution of specialist technologies. This is
a business that we have historically done well and which has proven
to be profitable and cash generative.
The year to 31 August 2016 was a difficult year for the Group
and necessitated many hard decisions with all but core activities
terminated or sold. While this resulted in some significant
write-off of past costs, with a large proportion of that write off
being non cash, it establishes a solid profitable base upon which
to build for the future.
We have strength in the stability that our core electronic
component business brings and also some real established growth
drivers in our lighting technologies and connected products and
systems."
Enquiries
APC Technology Group PLC +44 (0) 330 313 3220
Richard Hodgson, Chief Executive www.apc-plc.co.uk
Art Russell, Chief Financial Officer
Stockdale Securities Limited (Nominated Adviser and Broker) +44 (0)20 7601 6100
Mark Brown / Antonio Bossi / Edward Thomas
This information is provided by RNS
The company news service from the London Stock Exchange
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