16th Jul 2014 07:52
LONDON (Alliance News) - APC Technology PLC said Wednesday that it expects revenues and profits for the current financial year to be below market expectations as the number of shipments to its largest customer reduced and a number of new customer orders have been received too late to fulfil in the current financial year.
The profit warning comes as the company reports good progress in its energy efficiency business after focusing on growing its Minimise brand's client base. APC said it is currently in the final stages of negotiations for orders for the Minimise business with six new customers across a range of sectors which will help to reduce the business's reliance on any one customer early in the next financial year.
However, the short term reduction in shipments to APC's current largest customer in current trading, coupled with the fact that orders from new customers are being received "a little too late to be fulfilled entirely in the current financial year," is likely to mean that revenues and profits for the current financial year will be below market expectations, said the company.
APC also said that it has received a letter of intent to facilitate the start of the manufacture of LED lighting, which will be fitted into refrigeration units in around 500 stores operated by one of the UK's major food and clothing retailers over the next twelve weeks.
This letter of intent has an initial nominal value of GBP1 million and is anticipated to be part of a wider roll out of low energy lighting to this company in which the group hopes to participate, it said. The value of the overall project is expected to increase once the full site surveying process is underway, said APC.
The company has also signed a distribution and licensing agreement with Isotera Ltd, a company which offers a unique 'contactless power' technology that removes the need for individual drivers for LED lights. No financial terms of the deal were disclosed.
Overall, APC said it is pleased with its progress to date and, including the positive impact that the broadening Minimise customer base is expected to have in the next financial year, that it views the future with confidence.
APC Technology shares dropped in early trading Wednesday, trading 17.77% lower at 31.66 pence per share, in the top five fallers on the London market shortly after the market open.
By Alice Attwood; [email protected]; @AliceAtAlliance
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