APC CEO Interview Q1 FY13: Green Growth Potential

Wednesday, Sep 26 2012 by
7
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.  More recently Advanced Power Components has followed a diversification strategy and has a controlling interest in two businesses within the energy saving products and technologies market.

Following a busy year end and having recently announced a significant £1.5m LED lighting contract with a supermarket chain for the Minimise brand, Mark Robinson the APC Chief Executive Officer has taken time out to discuss various aspects of the business, including, market assessment, positioning for growth, QV Controls, Minimise energy saving products and technologies including the much talked about imop™ and LED range:

 

Q1. What’s your general assessment as to the FY12 performance of APC and the electronic components market in general, are margins under pressure and do you foresee further consolidation?

In terms of the electronic component distribution business I would have to say that the financial year recently completed was disappointing. However, we shouldn’t lose sight of the fact that overall the Company would have been more profitable had we not made the decision to invest profits generated in our distribution activities to further develop our position in the sustainability sector.

The UK’s electronic component distribution market in general remains relatively weak and although we are only active in relatively specialist sectors we have seen pressure in the aspects of our business more associated with industrial and commercial markets. In these areas the available business has undoubtedly reduced and margins have tightened as a result. It seems likely that this pressure will continue through the rest of 2012 at least but we anticipate some improvement in market conditions when the general economy eventually starts to recover.

As regards further consolidation, historically there has always been an element of consolidation following a downturn and I don’t expect anything to be different this time around. We are continually on the look-out for opportunities to further develop the distribution side of our business but valuing businesses based on what might be considered to be exceptionally bad market conditions is very difficult and we remain acutely aware…

Unlock this article instantly by logging into your account

Don’t have an account? Register for free and we’ll get out your way

Disclaimer:  

This content has been created for information purposes only, and is NOT, in any way, a recommendation to invest.  This communication is a snapshot of a certain aspect of a discussed business at a moment in time, and is merely a basic starting point for research.  The article/thread has been created with honesty and integrity in mind and is based on publically available information sourced in relation to the title, such as from, RNS announcements, published reports, management comments, analyst reports, media coverage etc.  To this extent the author who has written the piece in good faith accepts no liability for the accuracy of the information and urges all readers to verify the content independently.  Please note that the value of investments may fall or rise and you may not get back the amount originally invested, or in some cases your investment may be wiped off altogether.  When investing, bear in mind that past performance is not a guide to future performance and that qualified independent financial advice should be sought before buying or selling shares.  The Author of this article may hold shares in the companies discussed.


Do you like this Post?
Yes
No
7 thumbs up
0 thumbs down
Share this post with friends



APC Technology Group PLC is engaged in the distribution of specialist electronic components and helping customers through integrated water management products, services and solutions. The Company operates through two segments: the distribution of specialist electronic components (Components) and the sale of smart energy saving products and water services (Minimise). The Company also has a Head Office that provides oversight and support to the trading businesses. Its products and services are offered through two divisions, Advanced Power Components (APC) and Minimise Group. APC distributes specialist electronic components and connectivity solutions. The APC's core business is the provision of components to the defense, aerospace, space, industrial, medical and healthcare sectors. Its Minimise Group offers energy efficiency and water management products, services and solutions to its clients. It includes water management and compliance, energy reduction strategies and products. more »

LSE Price
8.25p
Change
3.1%
Mkt Cap (£m)
9.0
P/E (fwd)
7.5
Yield (fwd)
n/a



  Is APC Technology fundamentally strong or weak? Find out More »


6 Comments on this Article show/hide all

Elias Jones 6th Nov '12 1 of 6

Advanced Power components is moving ahead with its green growth strategy with the announcement that they acquired CeroUK an entity established to promote the use of and supply multiple "green" technologies .

The acquisition, and in the future subject to a successful negotiations with third party insurance agencies, it is hoped by APC that these projects could be offered with underwritten performance guarantees which could APC to attract third party investment as part of its green offering.

The recent supermarket £1.5m LED order is hopefully a sign of what is to come from the green arm of APC.


Mark Robinson, CEO of APC, commented on the CeroUK aquisition:


"I am pleased that we have been able to acquire CeroUK at this early stage. By offering financing and insurance options under the Minimise brand we will be able to address a significantly larger market than previously available to us. The expertise in the CeroUK team adds a new and exciting dimension to our portfolio."


http://www.investegate.co.uk/advanced-power/rns/acquisition--issue-of-equity/201211010700100299Q/

| Link | Share
Elias Jones 8th Jan '13 2 of 6

Advanced Power Components will be hoping to pass a resolution at the end of the month to be re-named as APC Technology Plc, which would have two main strings, the traditional components divisions and Minimise Energy for promotion of its clean tech range.

Having been a follower for many years I am hoping that 2013 will be the year APC makes a foothold in the green energy efficiency product sector. Its now getting to the stage that companies will look to install products such as LED lighting because they can actually save money and not just because it sounds good.

| Link | Share
Elias Jones 10th Jan '13 3 of 6
1

Contract Win from Major UK Retailer

Excellent news today from APC, off the back of the recent £1.5m major supermarket order competed in December they have now been awarded a follow on deal from the same retailer worth an initial £2m starting this month. APC also state that they are well positioned to win further orders in the near future. The clean tech division is now starting to deliver.

 

Advanced Power Components plc (AIM: PLC) is pleased to announce that its subsidiary, Minimise Limited, has been awarded a second order from a major UK retailer for energy efficient LED lights for up to 80 store locations. The order received, valued initially at £2 million, covers preliminary product procurement and store survey costs. The final order value will be confirmed once product quantities have been determined following the store surveys. This contract follows the successful execution of the order previously announced in September 2012 under which 34 stores were completed. Work for this contract is expected to commence in January 2013.

The board remains optimistic that Minimise is well positioned to win further orders in the near future.

Mark Robinson, CEO of APC, commented:

"Being awarded a follow on contract from such a prestigious customer is particularly gratifying as it represents a big vote of confidence in the ability of Minimise Limited to deliver energy saving products and services successfully. We are increasingly convinced that the growth potential for LED lighting and other green technologies is significant and that Minimise is well positioned to capitalise on the opportunity."



http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11452613

| Link | Share
Elias Jones 10th Jan '13 4 of 6
1

A good interview with CEO, Mark Robinson about the major contract win today from BRR media, Mark mentions that the turnover of APC this year will be the largest in its 30 year history and also hints that the work with the major retailer will continue for some time to come.

Really worth a listen:

http://www.brrmedia.co.uk/event/107642/mark-robinson-chief-executive-officer

| Link | Share
Elias Jones 22nd Jan '13 5 of 6

Director Share Dealings


Interesting development on APC today, Mark Robinson the CEO has increased his stake by 300k shares and now holds 880,020 or 2.9% of the company, Rob Smith the Finance Director added 40k and now holds 90k or 0.3% and Ian Davidson bought 40k at a fixed price of 13.25p.


This buy resulted from a distressed significant holder appearing on a UK BB around the 15th Jan saying he wanted to sell 1.33m shares to invest in his other business venture and asking if anyone wanted  this holding. Now selling this amount of shares which was around 4.5% of the company on the open market would have unsettled the SP and probably tanked the stock for a good while.


Now from what I can gather swift action was taken and the seller was contacted immediately on or around that date with an offer at 20% discount to the offer price on the day to underwrite his 1.33m disposal immediately and the seller agreed to this route, with a deal brokered and completed in a very short space of time with strong commitment from APC staff and management for the shares.

With the recent follow on order from the major supermarket during what looks like being potentially a transformational year for APC, I am glad as a shareholder that swift action was taken to clear what appeared to be a forced seller.


RNS - Director Share Dealings
Advanced Power Components plc (AIM: PLC), has been informed that three directors have purchased shares in the Group.
http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail.html?announcementId=11464281

| Link | Share
Elias Jones 18th Mar '13 6 of 6

A new #APC interview is out today with Mark Robinson the CEO of Advanced Power Components. The interview was conducted by BRR Media covering the recent Trading Statement, corporate structure and Green tech growth.

http://www.brrmedia.co.uk/event/110627/mark-robinson-chief-executive-officer

| Link | Share

What's your view on this article? Log In to Comment Now

You can track all @StockoChat comments via Twitter

 Are APC Technology's fundamentals sound as an investment? Find out More »



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 »

Follow



Stock Picking Tutorial Centre



Let’s get you setup so you get the most out of our service
Done, Let's add some stocks
Brilliant - You've created a folio! Now let's add some stocks to it.

  • Apple (AAPL)

  • Shell (RDSA)

  • Twitter (TWTR)

  • Volkswagon AG (VOK)

  • McDonalds (MCD)

  • Vodafone (VOD)

  • Barratt Homes (BDEV)

  • Microsoft (MSFT)

  • Tesco (TSCO)
Save and show me my analysis
Foliobuilder