Apc Technology Share Discussion Threads

[playful] 27/2/2016 22:28

The CEO here is one of the best I have come across and in this game it's all about the management. It's a leap of faith but that's how you make the rewards, so he has my full support!

[rinson] 27/2/2016 18:46

Pub: I was not there so only hearsay but from a totally reliable source. Yes, much talk about margins and key performance indicators to ensure business is profitable and cash generative. The days of the 20% margins are dead and buried. The management is different. More financial biased which is great for now as the hard work of introducing the new products and markets has been carried out in the preceding years. I do not believe the share price will rapidly climb unless there is a major news story but this time next year, assuming forecasts are met, we should start to see confidence in the stock return. For me, the overriding indicator is the CEO buying £80k shares. That really is putting your money where your mouth is!

[pugugly] 27/2/2016 10:56

Rinson: Thanks - Much appreciated - Did you get any gut feel as to whether the new managment were actually being able to manage the contracts smarter so as to generated the expected margins, rather than just talking the talk ?

In other words while it is quite clear they are generating substantial revenue Mr Market needs to see net margins being significantly increased. Was this point addressed during questions ?

[simon templar qc] 26/2/2016 19:05

Thanks Rinson, turnover increase confirms my previous views on sales increase well ahead of previous broker forecasts. Been off air lately due to unforeseen circumstances.

[playful] 26/2/2016 15:56

Rinson, Thanks for this feedback it is appreciated.

I was going down but got delayed in heavy traffic and just missed my train so wasn’t best pleased, especially on learning my tickets were non-refundable.

If they finance a couple of LED projects with the new cash, we should lock in our numbers for the year almost immediately.

[rinson] 26/2/2016 15:01

Spoken to someone who attended yesterdays AGM and they said that the meeting was very positive and informative.
After the formal business was conducted the CEO gave a presentation on where the company was at. After the strategic review the focus is now on profitable and cash generative business. He reported that identified business in various stages from customer engagement to quotations and drawing up contracts was in the region of £40m excluding distribution and greater emphasis was being put on cross selling between all group customers. He spoke about water deregulation later this year and how he believed this would open up a far greater benefit for both APC and their customers. APC could have a roll in advising customers where to buy their water for the best deal. Talked about their ongoing contract with Royal Mail. In addition to their current business Apc asked to provide monitoring and control for all diesel plant to eliminate the possibility for major contamination in the event of leakage.
After the presentation he invited questions from the floor. The main questions were as follows:

Q Was the current year going according to plan?
A Yes

Q In the event of a major uptick in business would the current level of funding now be sufficient.
A Yes

Q How much of the current £6m facility is being used.
A £2.5m

Q Would a major increase in the LED lighting business necessitate hiring more staff.
A No because they have a wide circle of contract installers to call upon.

The Q & A session was not time limited and all questions were answered.

[kemche] 20/2/2016 21:31

rinson, many a true word said in jest?

[kemche] 20/2/2016 21:31

rinson, many a true word said in jest?

[rinson] 20/2/2016 21:20

Kemche: I think you will find that the placing was the maximum allowable without shareholders approval. I see there is a similar resolution to be voted on at next weeks AGM so maybe another placing the week after LOL.

[kemche] 20/2/2016 20:39

ST,
Granted it is a difficult term but let me try to explain. A Lesser High Net Worth Individual is one who was formerly a Higher High Net Worth Individual, a self proclaimed "professional", who through their own self importance had sought to give "assurance" to others of the merits of an investment here based on the fact that they had themselves invested and therefore deemed it worthy of others. A person who, when confronted with an alternative viewpoint, sneeringly derided it as "amateurish". A person who thought that the house broker was a bastion of integrity and truth. That person, who having seen a nigh on 40% decline in the share price is now a Lesser High Net Worth Individual. And no, I am not talking about a Russian Oligarch - but I suspect you may have an inkling as to whom I am referring to.

Pug, Agreed on your first point. As to your second, any price would certainly not be reliant on the BS - which is coincidentally also BS! The recurring revenue stream would have a value at a multiple of operating profits - but what are they?

[pugugly] 20/2/2016 19:12

kemche:> Very good points - I would 100% agree with you if we had not had a management change - IF & I suspect it could be a very difficult IF Richard H and the new FD succeed in increasing net margins through working smarter then potentially significant upside potential -


If not then subject to security of revenue streams I could envisage major shareholders approaching a major in the area to take them over - The $64M question is how much would a major be prepared to pay for some £30 million odd of extra revenue -
Thoughts ?

[simon templar qc] 20/2/2016 18:59

kenche

Lesser high net individuals?

I think that amounts to the vast amount of the population lately due to the erosion in shares all around the world.

All these oligarchs aren't as rich anymore!

[kemche] 20/2/2016 17:57

rinson, Hmmmmm......

One is always optimistic where one is invested otherwise one would not be invested.

As for the reasons for your optimism I remain sceptical. The "investment" by the CEO and the founder of APC may, in my opinion, have been a precondition imposed - no, sorry, "strongly suggested" - by the broker. Having had a history of endless fundraising it becomes embarrassing for the broker to revisit institutions offering newer versions of jam, none of which have EVER materialised. And the refrain that "this time it is really, really, really different" begins to ring hollow. The only succour offered as a sweetener to the institutions is that the management have skin in the game.

Even after offering the sweetener they have managed to raise a paltry amount which does not address their true funding requirement. The negotiation of a larger invoice discount facility is therefore a direct reflection of this and a negative rather that a positive. They achieve paltry margins as it is and having to give away, on average, between 1.5% to 3% of outstanding invoice value and between 0.5% and 3% of turnover for the pleasure of using the facility shows desperation rather than strength.

I would suggest that you go and plug in the net amount to be raised into the last balance sheet and see whether working capital has improved sufficiently.

As for a note from Cantors I think we should not embarrass ourselves any further, as some "professionals" have done to their cost. Let us quickly remind ourselves how their "analysis" and projections issued barely a few weeks ago have fared with the actualité. They could stick a 50p price target on the share price and the only people who would be swayed by it would be the now Lesser High Net Worth Individuals.

A staggering nigh on 40% decimation in price since the peak in January - I wonder how many people are less than "assured" by those claiming to be "professionals". Hubris ALWAYS followed by nemesis.

All of the above is, as always, my amateur opinion and not intended as advice and NO "assurances" should be taken from my witterings. I am often wrong - most of the time in fact. So be warned.

[rinson] 20/2/2016 16:05

kemche: Maybe who knows but I prefer to stay optimistic for the following reasons.

1. Very significant investment from CEO.
2. Negotiating a larger invoicing discounting facility must surely indicate an expectation of imminent significant orders.

Of course if the reason for the increased facility does not materialise then as you say WTF.
I would expect Cantor to issue a note next week but if it is a reiteration of it's 20p target my optimism will evaporate.

[kemche] 19/2/2016 16:13

rinson, I would have - but only to make a turn like the placees seem to be doing. I suspect that I may be able to pick them up even more cheaply soon - not that I will avail myself of the opportunity. The placing does not address their working capital sufficiently I think and I am not fond of a company that has to rely on invoice discounting to finance their operations. They have just announced a placing and are already talking about extending their invoice discounting facilities. As they say in textspeak - WTF????

[rinson] 19/2/2016 15:41

kemche: If you had any spare cash, take it that you would not have participated in the placing if given the opportunity?

[jailbird] 19/2/2016 15:21

Missed that bit, i thought the placing was to stop the need not use discount invoicing

[kemche] 19/2/2016 15:13

Ssshhhh webpax!

I suspect the placing was at the low end of what they were really after. This is merely a plaster before a proper bandage can be located. And I am sure Cantors will be along to placate those that are truly "professional" - because they wouldn't want egg on their face now would they?

[webpax] 19/2/2016 14:57

Worryingly it looks like even this placing will not be enough as the RNS talks about extending the already significant use of invoice financing: "together with the Company's reconfirmed invoice discounting facilities, the potential extension of which is under discussion"

[kemche] 19/2/2016 14:55

16% turn by the placees - then cover at 6p.

[kemche] 19/2/2016 14:48

Priceless stuff ST. Keep it coming.





Straw anyone?

[simon templar qc] 19/2/2016 13:39

Looks to me like rapid expansion:


" The sales pipeline opportunities currently being reviewed total GBP37.3 million in Minimise Energy and GBP12.7 million in Minimise Water. The Board remains focused, therefore, on meeting market expectations with a focused strategy and settled management team in place. "

[kemche] 19/2/2016 11:33

I can imagine a very tense meeting at Southport's Marginally Lower Net Worth Indviduals' Club tonight. Any professionals attending?

[kemche] 19/2/2016 10:19

Biggles, I suspect some on here knew before it was taken around to the institutions. Especially the "amateur" investors amongst us - obviously cannot speak for the more "Professional High Net Worth Individuals".

ST, are we due another broker note soon?

[b1ggles] 19/2/2016 10:11

Someone, somewhere, always 'has an inkling', kemche, it was taken round institutional investors. It's just the way it works, nothing's ever totally watertight.