APC Expect Profit Boost & Ask the CEO a Question

Friday, Sep 23 2011 by
6
APC Expect Profit Boost  Ask the CEO a Question

Back in July 2010 I covered Advanced Power Components (LON:APC), an AIM listed specialist distributor of electronic components which has been operating since 1982, identifying the stock as a potential recovery play following a difficult period in its history.  Since then the company has reported two full accounting years of returning back to profitability, coupled with a growth strategy which management believe has the potential to deliver 'substantial long term shareholder value'. [1]

In a recent trading report, Advanced Power Components cheered its shareholders with regards to the company performance for the 2011 financial year ending 31 August, highlighting that the expected profits for FY11 will ‘show substantial improvement over the prior year in line with expectations’.  The market expectation going by the house broker Northland Capital Partners in a recent research note stood at a profit before tax (PBT) level of £403k, representing if achieved a PBT growth of around 63% on FY10, equating to an earnings per share figure of 1.8p. [2]

 Commenting on the results the company stated;

“The Group continues to be involved in a process of change on a number of levels, both strategically and tactically, as we seek ways to achieve meaningful growth in profitability and deliver substantial long term shareholder value. We are pleased to say that we are making progress both in terms of current trading and in terms of new opportunities for future growth being created.” [1]

Of the autonomous brands within APC, the Hero and Displays+ were the star performers, with solid performances also reported from the Novacom, Hi Rel and Locator brands, the weakest but still profitable performer this year was the Contech facia which suffered from broad cuts in IT expenditure mainly from within the health service.  Looking forward Advanced Power Components, highlight that they are entering FY12 with a ‘strong order book’ and good prospects both in its core business and its strategic growth areas which include the imop™ energy saving device and other potential green technology products.  Also of interest within the recent trading update was further detail regarding the recent the strategic diversification into the green technology sector through the Quo Vadis acquisition, which is currently being rebranded as QV Controls Limited, and will be offering lighting solutions and marketed on the back of a soon to be released case study ‘demonstrating the ability of the technology to make savings in energy consumption related to lighting in a commercial building of more than 80%.’

Amongst all the reported doom and gloom, a positive update from a small British company expecting to substantially increase its profits compared to its previous years trading, coupled with a credible growth strategy going forward is quite refreshing to read.

Ask the CEO a Question

 Special Offer: Invest like Buffett, Slater and Greenblatt. Click here for details »

Following on from the recent trading update Mark Robinson the CEO of Advanced Power Components has agreed to participate in a Q&A interview as a follow up to the one he participated in 12 months ago.

This is an open offer, if anyone wants to get involved with questions/topic areas for Mark Robinson about the business, industry, green technology etc then please let me know in the comments below or via Stockopedia mail.

  • Deadline for questions/topics 17 October 2011
  • Aiming to upload onto Stockopedia 28 October 2011 

Basic overview

Advance Power Components based in Rochester, Kent, operate under a number of different autonomous brands;

  • APC-Hi Rel: products such as power semiconductors, power supplies, memory, wound and high voltage components.
  • APC-Hero: Specialist products such as  LEDS/LAMPS, drivers, wireless devices and modules, Zigbee, specialist sensors and crystals
  • APC-Displays+: technical and commercial support for a wide range of LCD’s, standard, custom, TFT, e-signage, character, graphics, driver boards, IC’s, etc
  • APC-Locator: concentrates on locating obsolete and hard-to-find parts for its customers 
  • APC-Contech: Products such as data input devices for the industrial, broadcasting and medical sectors
  • APC-Novacom: RF and microwave frequency electronic components
  • APC-Go!: Services on offer range from material procurement to full production management
  • APC-Minimise – Green technology
  • QV Controls Limited – Newly acquired lighting solutions business

Ticker code: APC, Shares in issue: 25.7m, Current SP: 10.5p, Market Cap: £2.7m, 52 Wk Low: 8p, 52 Wk High: 17.5p.

Disclosure: The Author holds shares in Advanced Power Components (LON:APC)




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
6 thumbs up
0 thumbs down
Share this post with friends



APC Technology Group PLC is a distributor of electronic components and a provider of technologies developed to reduce energy consumption. The Company's segments include the distribution of specialist electronic components and sale of smart energy saving products and services. The Company also contains a central services segment that provides support to the trading businesses. Its markets include defense, aerospace, space, transportation, medical and industrial sectors. Through Minimise Energy, the Company promotes a range of technologies developed to reduce energy consumption and carbon emissions. These products are either sold individually or may be combined to provide an integrated, multi-technology solution. The Company's subsidiaries include Minimise Controls Limited, Minimise Energy Solutions Limited, Minimise Limited, Minimise Energy Limited, Minimise Holdings Limited and Minimise Holdings USA Inc. In September 2014, APC Technology Group plc acquired Green Compliance PLC. more »

Share Price (AIM)
27.75p
Change
0.0  0.0%
P/E (fwd)
9.3
Yield (fwd)
n/a
Mkt Cap (£m)
20.4



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


3 Comments on this Article show/hide all

Elias Jones 14th Oct '11 1 of 3

thanks for the contribution via mail, interesting q on legislation with regards to the tipping point.

| Link | Share
Elias Jones 27th Oct '11 2 of 3
4

Just confirming to those interested and that have contributed that the Advanced Power Components interview will be uploaded onto Stockopedia tomorrow.

| Link | Share
Elias Jones 29th Oct '11 3 of 3

Here is the link:

Advanced Power Components CEO Interview Q1 FY12

http://www.stockopedia.com/content/advanced-power-components-ceo-interview-q1-fy12-61199/

| Link | Share

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

 
 
You are feeling neutral

Use the £ sign in front of a ticker to turn £VOD into Vodafone PLC

You can track all @StockoChat comments via Twitter


About Elias Jones

Elias Jones

Follow

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 »



Stock Picking Tutorial Centre



Stock Picking Simplified

Stockopedia takes your stock picking to the next level with cutting edge Stock Reports & Screening tools.


Get started
or Take a Tour to find out more.