23rd Mar 2015 09:28
LONDON (Alliance News) - APC Technology Group PLC Monday said it expects to report about a 20% increase in revenue during the first half of its financial year, although its operating profit before exceptional costs has fallen and it will also book over GBP1.1 million of exceptional costs mainly related to its acquisition of Green Compliance PLC.
The business software provider and electronic component distributor said it expects to report revenue of about GBP14.4 million for the six months to February 28, up from GBP12.1 million, a year earlier, although operating profit before interest, tax, amortisation and exceptional costs will fall to about GBP250,000, from GBP791,000 a year earlier.
It added that it will book acquisition costs for Green Compliance of GBP650,000, restructuring costs of GBP150,000 and discontinued costs relating to the Green Compliance buy totalling GBP350,000. It said the majority of the expected one-off costs relating to the integration of Green Compliance have now been expensed.
APC expects to reports its interim results in May.
It said revenue in its Minimise Energy business were about GBP4.0 million during the half, down from GBP5.9 million a year earlier, although sales to customers other than main client Wm Morrison Supermarkets PLC rose fourfold to GBP3.6 million.
"Further recent expansion of the Minimise Energy order book indicates that sales in the second half will be significantly higher than in the first half year of the year," it added.
Green Compliance, meanwhile, reported revenue in line with expectations at GBP4.1 million, boosting group revenue. It secured a new contract with Royal Mail PLC as well as revenue from other new and existing clients.
Revenue in APC's electronic component distribution business was flat at about GBP6.2 million.
The company didn't give a reason for the decline in operating profit before interest, tax, amortisation and exceptional costs, but said "significant internal restructuring is on-going with steps being taken to rationalise head office costs, drive operational efficiencies and leverage economies of scale".
It said it had invested about GBP300,000 to create Minimise Generation, GBP400,000 in expanding its operations in the Americas and GBP1.2 million in working capital to support the recent growth in Minimise Energy during the half.
APC Technology shares were up 1.6% at 22.10 pence Monday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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