Advanced Power Components CEO Interview Q1 FY11

Friday, Oct 15 2010 by
8
Mark Robinson CEO of Advanced Power Components
Mark Robinson CEO of Advanced Power Components

Advanced Power Components (LON:APC) founded in 1982 is an AIM listed specialist distributor of electronic componentsAs a business, APC is split into a number of autonomous units, who supply a wide range of specialist components and equipment to a range of customers within different sectors such as, aerospace, defence, display technology and specialist industrial and commercial markets.

Following a busy year end and having recently announced that the company expects to post a return to profit before tax, Mark Robinson the APC Chief Executive Officer has taken time out to discuss various aspects of the business, including, returning to profit, positioning for growth, the marketplace, strategy and the much talked about imop™ energy saving device:

 

Q1.  Briefly, how would you describe APC’s business, its values and beliefs?

At its core, APC is a specialist electronic component distributor whose strategy is centred around providing a “design-in” service which is of value to both customers and suppliers. By helping our customers achieve their design goals using our suppliers’ components, we’re as much a service provider as a component distributor, which significantly differentiates us from the bulk of the component distribution market.

On top of this, APC is a creative, entrepreneurial company constantly looking for opportunities to diversify to achieve new avenues for growth. This strategy was successful during the 1990s when we created our own range of components aimed at the communications market. Right now we’re looking to generate growth by accessing the “green tech” sector with the imop™, a unit that helps reduce the energy consumption of electric pumps and motors.

Across all of the business we have developed a culture of mutual respect, integrity, ongoing learning and trust in which our employees are encouraged to take responsibility without the fear of blame, something we are proud of and display within each of our reception areas. I firmly believe that this helped us significantly through the difficult times over the last 24 months.

 

Q2.  APC have recently reported an expected return to pre-tax profit in line with market expectations for FY10, how did you turn the situation around from a loss making FY09?

The challenge has been to reduce operating costs in line with current trading without limiting the growth potential of the business and I feel we have done this. The market now…

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APC Technology Group PLC is a United Kingdom-based company engaged in the supply and distribution of specialist electronic components and the sale of energy efficient products and services. The Company's technologies and services include consulting, energy reduction, energy generation, water management and project financing. The Company operates in two trading business segments: Distribution, which is engaged in the distribution of specialist electronic components and Cleantech, which is involved in the sale of smart energy saving products and services. The Company also has central services segment that provides support to the trading businesses. The Company's subsidiaries include Minimise Energy Limited, Minimise Controls Limited, Minimise Energy Solutions Limited, Minimise Solutions Limited, Minimise Finance Ltd and Minimise Holdings Limited. more »

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5.8
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4 Comments on this Article show/hide all

Elias Jones 15th Jan '11 1 of 4

Advanced Power Components Annual General Meeting - 21 January 2011

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Elias Jones 15th Jan '11 2 of 4

Latest research – Northland Capital Partners

“FY11 forecast EPS of 1.5p give a PER of 7.7 which is more a reflection of past history than
future potential and low for the sector; a more realistic 10x would give a share price of 15p.”

http://www.apc-plc.com/documents/Northland%20Capital%20Partners%2001-12-10%20b.pdf

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Elias Jones 16th Jan '11 3 of 4

For those interested in Advanced Power Components and the imop, the innovative device designed to optimise electricity consumption and reduce CO2 emissions. Minimise the company set up to promote the imop are down to appear at the ecobuild event at the ExCel in London, with the European Match-making Event on Eco-Construction scheduled for Wednesday, 2nd March 2011. If you attend, share the feedback on here.

http://ecobuild.b2b-match.com/index.php?page=cat_tech&action=detail&params[id]=816

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Elias Jones 16th Jan '11 4 of 4
4

VERY INTERESTING – imop roll-out programme

This bit of information will be of interest to APC investors and concerns the imop energy saving device which is mentioned in the interview and company announcements, but stops at the stage of company names and roll out.

Cue Minimise the firm set up to sell and distribute the imop, who have a listing on the ‘Sustaninability today’ website and provide product information under the headings, who are we? what do we do? environmental issues? and the interesting section for me:

Who have we worked with?

“We have worked with firms such as Tesco, Price Waterhouse Cooper and Societe Generale Bank, for example, as well as major print and packaging companies such as Nampak. We are in the process of a roll-out programme with a major retailing chain, a hotel group and an airport authority.”

http://www.sustainabilitytoday.co.uk/index.php?option=com_sobi2&sobi2Task=sobi2Details&catid=11&sobi2Id=44&Itemid=11

APC have not yet informed the market of a roll-out programme for the imop, which according to Minimise its sales arm, includes a major retail chain, a hotel group and an airport authority.

Now, if APC announces its first ‘green tech’ orders, forecasts will be revised and an upward re-rating by the market would almost certainly be on the cards in my opinion.

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About Elias Jones

Elias Jones

I invest in sectors that are of interest to me and tend to look for the penny share AIM companies that have the transformational potential, which also tend to be by nature high risk investments, some come off some fail. One key aspect of investing for me is the approachability, quality and integrity of management, once I fear those have gone or if the fundamental aspects take a nose dive, that’s usually it for me regardless of asset/future potential. I only invest in a clutch of firms and usually keep an eye on a few other potential firms which I may add at some stage. I don’t mind waiting around if there is potential, I still keep my Marconi certificate to remind me of what can happen, and to the day kick myself for not snapping up Next at 18p many moons ago when I was so close to buying! more »

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