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
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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)
[2] Northland Capital Partners, APC Research Note, 9 May 2011, http://www.apc-plc.com/documents/Northland%20Capital%20Partners%20Analyst%20Note%20May%202011.pdf
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Advanced Power Components plc (APC) is a United Kingdom-based company. APC, along with its subsidiaries, is engaged in the supply and distribution of electronic components. The Company’s sales team includes APC Hi-Rel, APC Locator, APC Hero, APC Go!, APC Displays+, APC Novacom, APC Contech and APC KVAR. APC Hi-Rel distributes a variety of specialist electronic components into applications. APC Hi-Rel’s product line includes power semiconductors, power supplies, memory, wound and high-voltage components. APC Locator is a solutions provider in the industrial and defense/aerospace markets across Europe. APC Hero focuses on sensors and measurement, power management, communications and connectivity, and embedded computing applications. APC Displays+ provides technical and commercial support for a range of displays, driver boards, integrated circuit’s (IC’s), single board computers and all related connectivity. more »
3 Comments on this Article show/hide all
thanks for the contribution via mail, interesting q on legislation with regards to the tipping point.
Just confirming to those interested and that have contributed that the Advanced Power Components interview will be uploaded onto Stockopedia tomorrow.
Here is the link:
Advanced Power Components CEO Interview Q1 FY12
http://www.stockopedia.co.uk/content/advanced-power-components-ceo-interview-q1-fy12-61199/