Apc Technology (LON:APC) founded in 1982 is an AIM listed specialist distributor of electronic components, who have in recent times followed a potentially transformational diversification strategy into the energy saving products, services and technologies market.
APC Technology is vastly different now to the company I originally invested in, and is now well placed following years of strategic manoeuvers and hard work, to capitalise on the energy savings and sustainability sector.
Following the recent acquisition of a fellow AIM listed constituent Green Compliance, Mark Robinson has kindly taken time out to discuss various aspects of the business, including, the GCO acquisition, synergy benefits, LED order, invisible monitoring and more.
Q1. APC Technology have recently completed the acquisition of a fellow AIM listed constituent Green Compliance, can you please explain the rationale behind this acquisition?
APC’s strategy is to expand its presence within the sustainability sector in general and the Green Compliance acquisition is in line with this. To date, through Minimise Energy, we have been focussed on providing products and technologies which help improve the efficiency of energy consumption. Earlier this year we added consulting services and a project financing capability which up to now have supported Minimise Energy but are designed to support our future, wider sustainability strategy which includes water and on-site waste management and ‘embedded’ renewable generation. The vision is for APC to become a one-stop, end-to-end solution designed to meet all of a customer’s sustainability needs – something that hasn’t been done before. The acquisition of Green Compliance delivers the water management element and we expect to add the other capabilities at some point in the future.
The aforementioned strategy is underpinned by our belief that the business models of every organisation will, in the future, demand a complex sustainability strategy to overcome rising utility costs and increasingly punitive legislation. Accordingly, if they aren’t already, we believe that the 750 direct customers of Green Compliance, who are clearly aware of water management issues, will also be interested in the energy-related technologies we have to offer, opening up huge cross-selling opportunities.
Apart from the rationale mentioned above, we believe that Green Compliance is, in its own right, a business which has strong foundations for organic growth and, as such, it will provide a stabilising influence across the Group.
Q2. Can you briefly give us the rundown on Green Compliance as a business…
