1st Dec 2016 10:37
LONDON (Alliance News) - APC Technology Group PLC on Thursday said it expects to have made an operating profit in its last financial year, and said it has made a "solid" start to the new year.
The electronic components specialist said it expects to make an operating profit of GBP300,000 in the year ended August 31, having suffered a GBP1.4 million loss the year before. Gross profit is expected to grow to GBP6.4 million from GBP6.0 million, boosted by an increase in gross profit margin to 35.8% from 26.3%.
It will, however, book exceptional costs of GBP12.8 million relating to group restructuring, the sale of non-core activities and the write-off of goodwill and other intangible assets. The sale of non-core assets will also push revenue down to GBP17.9 million from GBP22.8 million.
In the first quarter of the current year, APC said it has made revenue of GBP4.5 million, boosted by record bookings of GBP4.1 million in the core component distribution business. Bookings in the prior-year period totalled GBP3.5 million.
Also in the first quarter, the lighting technologies business completed delivery of a GBP1.0 million order to a "major" high street food and clothing retailer and the first GBP250,000 of a GBP2.0 million lighting programme for a "major" financial institution's real estate portfolio.
APC added that it has reduced its headcount to 76 from 91 as it works to align the size and cost of operations with expected revenue. It said this will allow it to invest in new sales resources to drive growth.
"The stability of the business underpins the board's confidence in the performance of continuing operations and a profitable outlook for the year," APC said in a statement.
APC will release its annual results for the last financial year on December 14.
Shares in the company were up 6.9% at 6.55 pence on Thursday.
By Karolina Kaminska; [email protected]; @KarolinaAllNews
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