APC Technology Group PLC (AIM: APC), the provider of design-in, specification and distribution services for specialist electronic components and systems, lighting technologies and connectivity products, announces its unaudited interim results for the six months ended 28 February 2018.
- Operating profit before exceptional items increased 45% to £0.55m (H1 2017: £0.38m).
- Total profit for the period increased to £0.4m (H1 2017: £0.1m), compared with £0.2m for the whole year ended August 2017.
- Revenue increased to £8.6m (H1 2017 £8.3m) up 14% from the £7.3m posted in H2 2017.
- Gross margin maintained at 34.2% in the period (H1 2017: 34.4%), driving increased profitability through the lower fixed cost, design-in distribution business.
- Administrative expenses reduced by 3.5% from same period last year.
- Further reduction in trade and other creditors, as the Group invests in strengthening supplier relationships.
- Acquistion of First Byte Micro Limited in January 2018, to enhance APC Locator offering.
- Sale of investment in Open Energy Market Limited in January 2018, to concentrate on core activities.
- Group now concentrating on the proven business model of specialist electronic components, products and systems design-in distribution.
- First half bookings increased to £9.0m (H1 2017 £8.25m), representing a positive book-to-bill ratio.
- Significant traction from the focus on growth through increased bookings from existing technologies, in particular those that sit in high growth markets; growth through the signing of new complementary product lines; and growth through targeted bolt-on acquisitions.
Commenting on the results, Richard Hodgson, Chief Executive, said: “These results represent a signiticant increase in profitability for the Group and highlight the success of following a focused strategy of driving high margin, design-in distribution sales through a reduced fixed cost base. This profit has then been re-invested into a strengthened balance sheet.
With this foundation in place, we are fully committed to delivering increased profit and cash generation from increased revenue from our existing technologies and new complementary product lines and through targeted bolt-on acquistions.
I would like to thank our staff, whose tremendous effort and unfailing team spirit has given us this great platform and opportunity.”