APC Technology (LON:APC) is the Rochester based specialist distributor of electronic components and sustainability / energy saving products and services. Founded in 1982 and listed on the AIM market, APC Technology is a company I have been interested in for years, however, it is vastly different now to the company I originally invested in. APC Technology targets the specialist components market and more recently the energy and sustainability sector. The components part of the businesses split into a number of autonomous units, which 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.
Mark Robinson, the CEO of APC Technology has kindly taken time out to discuss various aspects of the business, however as a change to the normal Q&A, this time the questions have come from retail investors via Twitter and a chat forum.
Q1. Why has the share price dropped 66% in a year and have the directors taken a correlating pay cut to match the shareholder pain?
The most obvious reason for the share price weakness is the Company’s profits not meeting short-term expectations in the market. However, it is important to consider this in the context of the investment that is being made in the Company to capitalise on what we believe is a significant, long-term growth opportunity. Today, our business model, a “one-stop-shop” approach to reducing our customers’ energy and water expenditure through offering a portfolio of technologies, products and services, is now established and already delivering results. Moving forward, we have a very clear growth strategy and expect to be able to reward the patience of our shareholders in the not too distant future.
On the question of whether directors’ salaries should correlate directly with the Company’s share price, focussing on individual peaks and troughs and adjusting Board remuneration accordingly would be one approach, however, as I alluded to in the above, APC is very much a longer-term value play.
Q2. Did APC over value the Green Compliance acquisition and has it now saddled the company with increased liabilities?
I do not believe that Green Compliance was overvalued in any way. When making an acquisition of this nature an extended process of valuing the business is undertaken by the Board working with numerous advisers looking at the short,…
