Trading Statement

APC Technology Group PLC("APC" or the "Group")

Trading Statement

· Group sales and adjusted profit before tax ahead of market expectations

· Group sales up by more than 50% following rapid growth in the cleantech sector

· Operation established to drive growth in North and South America

APC Technology Group plc (AIM: APC), the specialist distributor and manufacturers' representative of electronic components and smart, energy saving products, is pleased to provide an update on its current trading and anticipated results for the year ended 31 August 2013.

After a year of significant progress, the Group is expected to report sales of approximately £21.0m which is ahead of current market expectations and represents revenue growth in excess of 50% over the prior year. The Group also expects to declare an adjusted profit before tax (before the IFRS adjustment referred to below) of no less than £0.35m which significantly exceeds current market expectations. As a result, the Group's net cash position at 31 August 2013 improved to approximately £1.0m which was considerably better than anticipated. The improved trading performance reflects the contribution of Minimise Limited which performed strongly through the second half of the year to post full year revenues in excess of £8.0m.

The Group also expects to report an IFRS fair value adjustment increasing the carrying value of its investments in subsidiaries by approximately £4.0m. Resulting principally from the staged acquisition of Minimise Limited, this non-distributable, unrealised gain will increase profit and goodwill.

The Group is also pleased to confirm that the restructuring of its investments in the clean technology sector is progressing in line with plan. Following the acquisition of the outstanding 49% of Minimise Limited in June and the acquisition of a 25% holding in Invisible Systems Limited in July, the Group expects to complete the acquisition of the outstanding 10% minority holding in Minimise Energy Limited early in the new financial year, at a valuation similar to that applied to the reorganisation generally. The Group is also pleased to announce that it has signed agreements to establish a 60% stake in a joint venture in the United States, Minimise Energy Americas LLC, to address the market for smart energy saving products and services in North and South America.

Although trading conditions have remained difficult, APC's electronic components business traded profitably through the year and is now beginning to benefit from improving market conditions linked to increasing confidence in the general UK economy.

The Group anticipates announcing its financial results and publishing its report and accounts for the year ended 31 August 2013 at the end of November 2013.

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