APC CEO Interview Q3 FY13: LED Orders

Tuesday, Apr 30 2013 by
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Mark Robinson CEO Advanced Power Components
Mark Robinson, CEO, Advanced Power Components

 Advanced Power Components (LON:APC) founded in 1982 is an AIM listed specialist distributor of electronic components and is a company I have followed for a number of yearsAs a business, APC is split into a number of autonomous units, who supply a wide range of specialist components and equipment to a wide range of customers within different sectors such as, aerospace, defence, display technology and specialist industrial and commercial markets.  However, although contributing, the components side of the business is not the part of the businesses that interests me the most as an investor, it is more the diversification strategy followed by APC which has resulted in a controlling interest in three subsidiaries within the energy saving products and technologies market.

Following the third substantial reported order for LED lighting products from a supermarket chain through the Minimise brand, Mark Robinson the APC Chief Executive Officer has taken time out to discuss various aspects of the business, including, the LED orders, QV Controls, Minimise energy services and funding for growth:

 

Q1. How are the general trading conditions for the core components business? Do you have any thoughts on potential market or brand consolidation going forward?

The general trading conditions in the electronic component distribution sector have been tough to say the least for the past two years. AFDEC (Association of Franchised Electronic Component Distributors) statistics indicate that monthly sales have declined by 26% during the previous 24 months. Our distribution business has declined by less than 10% over the same period indicating that we’ve increased market share which is some consolation. We would expect this to mean that we have the potential to maintain this increased market share when the market begins to grow again, which I believe will coincide with an improvement in general economic conditions.

As far as brand consolidation is concerned, we have done some of this internally over the past couple of years as part of reducing management overhead but we still have specialist technical sales people focussing their efforts on promoting the brand and the products in which they have a high level of expertise. This is critically important to us as consolidating the brands and have everyone selling everything would ultimately dilute the expertise we bring to niche markets which is ultimately why we exist .

Q2. Can you please explain…

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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.


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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 »

Share Price (AIM)
8.25p
Change
-4.4%
Mkt Cap (£m)
7.6
P/E (fwd)
9.9
Yield (fwd)
n/a



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1 Comment on this Article show/hide all

Elias Jones 23rd Oct '13 1 of 1

APC is a stock I have held for years and will be uploading a new follow up interview soon, discussing the Cleantech Minimise arm, the US Minimise JV, the Invisible Systems Limited acquisition of the cloud based, end-to-end monitoring and control solutions amongst other topics.

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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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