30th May 2014 08:21
LONDON (Alliance News) - APC Technology Group PLC Friday reported a big jump in pretax profit in the first half of its financial year, as revenue rose by almost a third thanks to the growth of its Minimise energy efficiency products business.
The company is made up of the Minimise brands that produce products that help businesses cut energy costs and reduce carbon emissions, and its specialist electronic component distribution businesses. Minimise clients include Wm Morrison Supermarkets, Tate Modern, and Network Rail, which the company recently supplied with new lighting for London's Victoria Station.
APC Technology reported pretax profit of GBP761,000 for the six months to February 28, up from GBP47,000 a year earlier, as revenue rose to GBP12.1 million, from GBP9.2 million. The company had said in March that it expected to report sales of GBP12.1 million and a pretax profit of at least GBP700,000.
It added Friday that its net cash had risen to GBP1.4 million at the end of the six months, from GBP966,000 a year earlier, with net operating cash in-flow of GBP920,000 during the period, compared with an out-flow of GBP548,000 a year earlier.
"Our Minimise smart energy saving products and services business has continued its strong growth and we have successfully expanded the customer base, opportunity pipeline, product offering and depth of service provision in the period. In addition, we are very pleased to have expanded the group's global reach with its entry into the North American market which we believe holds significant opportunity for the group," Chief Executive Mark Robinson said in a statement.
The company said sales at its electronic components distribution business were marginally lower than in the year-earlier period, in line with its expectations. However, it is hoping that the business will return to growth in the near term after it won a large number of contracts in the fiscal first quarter, and as general market conditions picked up.
APC Technology said it is continuing to focus on widening its client base and the sectors and geographies it supplies in its Minimise businesses in order to reduce reliance on any one sector or customer.
It said it ended the first half with a "record" pipeline in terms of both the value and number of customer relationships being developed.
"Our experience to date indicates that the typical business development cycle leading to full deployment with significant customers is circa eighteen months. We are at an advanced stage in this cycle with a large number of customers and expect to be in a position to disclose further details once full scale deployment is underway later this year," it said
"The board is looking forward to the full year with confidence, with a growing customer base and a significantly increased project pipeline. The market for energy savings products and services is gaining considerable momentum and the board is confident that the results achieved so far will be expanded upon," Robinson added.
APC Technology shares were down 0.1% at 49.95 pence Friday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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