Apc Technology Share Discussion Threads

[playful] 03/9/2014 14:12

They will appoint Richard Hodgson as the new FD once this goes through so I guess that’s a synergy especially as GCO paid him twice as much as the APC CEO.

[butchcasio] 02/9/2014 17:02

13th of september change over on the 15th, i think mate.


near impossible to work out the true cost synergies. But, there is quite a bit of info out there if you're willing read.. :-)

[brownie69] 01/9/2014 10:29

Any ideas on when the GCO deal is likely to complete?

Plus anyone had a go at working out the actual cost synergies, ie the impact to APC P & L?

[butchcasio] 26/8/2014 08:19

A break over 40p would suggest the Inverted Head and shoulder pattern is in play, with an implied target of 50p...

[butchcasio] 25/8/2014 19:08

Started a new thread, guys.

feel free to join me or read the research, i post.

All the best.

[butchcasio] 25/8/2014 15:45

In December 2009, Green Compliance was restructured with the stated intention of executing a buy and build strategy to become a significant participant in in the UK "blue collar" compliance services sector. While it was able to execute some 15 acquisitions in the period to December 2011, the financial crisis which began in 2008 severely affected its on-going access to additional equity and debt funding required for it to continue to grow by acquisition and also to a reduction in the trading of each of its main units at the time that the consolidation of these units into the Green Compliance Group was being executed.

Accordingly, with on-going financial pressure, a lack of expansion capital and reduced trading, the then directors of Green Compliance embarked upon a restructuring of the business, its strategy and its financing, which culminated in the Green Compliance 2013 Refinancing which involved a write down of debt facilities and an equity fundraising of approximately £3.5 million at 1p per Green Compliance Share. The successful Green Compliance 2013 Refinancing was completed during the financial year ended 31 March 2014 which, coupled with the divestment of the Green Compliance Pest business and Green Compliance Fire business, has allowed Green Compliance to exit that financial year completely focused on its water hygiene and treatment business.

The Green Compliance Water business is now a national one stop water management company offering all forms of water treatment and water hygiene, including legionella control, water risk assessments and water sustainability projects, such as rain water capture and grey water re-use. Green Compliance Water has a direct customer list of around 750 clients, to which it provides water treatment and water hygiene compliance services via 145 employees, operating from four premises nationally. The Green Compliance Directors believe that the Company's customer reach is significantly larger than this due to the composition of the existing customer base, which includes many facilities management companies, each of which act on behalf of, in some cases, hundreds of businesses or organisations.

Continuing revenues in the Green Compliance Water business for the year ended 31 March 2014 totalled £8.1 million with an operating profit before exceptional costs, share based payments and amortisation in Green Compliance Water of £0.1 million. Green Compliance Group had net assets as at 31 March 2014 of £4.4 million.

The UK Water hygiene & treatment market

The basic definition of water treatment is the purifying of water to make it suitable for household or business use. The water treatment industry in the UK is worth an estimated £3.8 billion in 2013/14. Water treatment requirements are estimated to be split relatively evenly between domestic and commercial/industrial use. Based on the estimated industry value of £3.8 billion, the commercial areas of the UK water treatment industry are estimated to be valued at approximately £2 billion in 2013/14. A significant percentage of the market relates to the treatment of water in storage, both open and underground reservoirs. The majority of this work is undertaken by water companies, or large global businesses (e.g. GE Water, Nalco).

However, there is a significant addressable market for water treatment services with large corporate organisations, SMEs and commercial organisations such as Green Compliance Water services and this is estimated to be worth in excess of £1 billion per annum in the UK.

Under UK government regulations (Health & Safety Act 1974, ACoP (L8) 4th Edition 2013, COSHH 2002 and Water Supply Regulations 1999), anyone serving the public has a legal duty to prepare and manage a scheme for maintaining safe water quality. Hospitality and leisure facilities, healthcare providers, care homes, as well as employers in general, are therefore faced with the same obligation. As well as requiring risk assessments, organisations subject to the legislation are required to have access to competent help in applying the provisions of health and safety law, water storage and supply and specification for the design, installation, testing and maintenance of services supplying hot and cold water for use within public buildings. All these regulations are principally driven by the necessity to prevent legionella from developing in water systems.

Green Compliance Water provides a comprehensive service across the water hygiene spectrum and the Green Compliance Directors believe that it therefore has an addressable market in the UK for water hygiene services of an estimated £241 million and that this market is growing at an estimated 5 per cent. CAGR.

The main driver for this is the growing concern for companies around water sustainability as water consumption outstrips population growth; water supplies are threatened by pollution, population growth, urbanisation and climate change; water charges increase through metering and acknowledgment of the move to charging and a growing awareness from consumers of the importance of water quality, safety and security.

The Green Compliance Directors also believe that there are further opportunities to service the wider water market as it moves towards greater sustainability products and ultimately the supply of water as the market deregulates. In addition, the Green Compliance directors believe that the Green Compliance customer base and existing water management relationships with those customers gives them access to this increasing market.

The wider sustainability market

The sustainability market is a large and growing market internationally and in the UK in particular:

· the International Energy Agency estimates that investment in key energy efficiency markets worldwide was US$244 billion in 2013, and must increase to US$1 trillion by 2030 to avoid a two degree global temperature rise;

· investment is being driven by the need for businesses to take action or see profits eroded by the cost of energy and punitive legislation;

· improving economic conditions are encouraging businesses to implement strategies created over the past five years; and

· opportunities in energy efficiency will be mirrored by technologies being developed for 'embedded generation', energy storage, water and waste management.

Sustainability covers both energy and water and the Green Compliance Directors believe that a number of their existing customers include both energy and water as part of their considerations in relation to sustainability. Additionally, there is evidence to suggest that a significant number of these customers have an individual or team with responsibility for both energy management and water management. Increasingly the market is viewing these two sub-sectors together, as companies look for similar solutions to both issues and with new entrants to the market offering combined solutions to asset owners or facilities managers which are typically Green Compliance's and APC's customers. This synergy, in relation to sustainability, is also being driven by the proposed deregulation of the supply of water to businesses in England which is expected to come into effect in 2017 (2013 Draft Water Bill).

The Green Compliance Directors believe that all of these factors provide significant revenue opportunities for a sustainable water management offering that sits alongside a wider sustainability engagement with customers, as customers come to view water more and more in the same way as they view other sustainability issues such as energy efficiency and waste management.

To date APC has not been active in the water market, although it does have a stated strategy of increasing the products and services in its sustainability focused business, 'Minimise'. APC has seen significant growth in its energy efficiency focused business, which shares a common type of customer to Green Compliance in that it is typically asset owners and facilities managers which are focused on issues of sustainability.

Through APC's Minimise business it has a growing expertise, customer base and pipeline in energy efficiency related products and solutions. APC currently has three main sustainability offerings:

· Minimise Energy: these include Energy monitoring, LED lighting, boiler optimisation, solar gain reduction, remote energy control and electric motor optimisation;

· Minimise Solutions: energy procurement, energy strategy development, building accreditation, energy measurement and verification; and

· Minimise Finance: bespoke Energy Efficiency Service Agreement (EESA) funding which enables businesses to achieve energy reduction targets through an upfront reduction in capital expenditure.

The proposed acquisition allows APC to move into:

· Water Sustainability: including rain and waste water harvesting, water consumption monitoring and management, leak detection and remediation, and the management of water hygiene (especially legionella control) or water treatment needs versus water conservation needs.

The abovementioned set of water sustainability products are either currently offered by Green Compliance to its customer base or are in development by Green Compliance. In addition, Green Compliance's customer base is already actively engaged with Green Compliance in seeking to procure these products across a larger end customer base.

Following this acquisition the Enlarged Group will seek to pursue a strategy to further extend the sustainability offering into:

· Renewable energy generation: thermal solar PV-T, heat pumps, hybrid solar solutions and embedded generation; and

· Energy from waste: on-site waste processing and waste to energy generation.

[butchcasio] 25/8/2014 15:43

The primary reasons for recommending the Offer can be summarised as follows:

· given the corporate history of Green Compliance and as a small business focused solely on the water market Green Compliance has restricted access to cost effective sources of both debt and equity capital to accelerate organic growth or to make further acquisitions;

· even if a disposal of the Green Compliance Water business on an acceptable multiple within an acceptable timeframe could be achieved and cash returned to Green Compliance Shareholders, the Green Compliance Directors do not expect this to deliver a material enhancement to the implied value of the Offer;

· that significant cost savings and synergies can be achieved through the Offer;

· that the improved liquidity expected as part of the Enlarged Group will benefit all Green Compliance Shareholders;

· that the combination of the Green Compliance on line cloud based customer portal with the APC ISL technology will provide a compelling route to market for additional water sustainability services such as water consumption monitoring and management;

· the Enlarged Group as a provider of sustainability services and products nationally will be a significant platform for further growth as it benefits from the critical mass of improved customer relationships and enhanced productivity and purchasing power; and

· that the integration of the two businesses will strengthen the depth and quality of the senior management of the Enlarged Group at board and operating level as the two management teams are integrated.

LISTEN:

APC Technology Group - Recommended offer for Green Compliance plc;


WATCH:

APC Technology Group - Trading statement;


READ:

[butchcasio] 14/8/2014 11:22

Tipped in shares mag, today.

'APC ready to rebound
Emerging business has rapid growth potential here and overseas
Clean energy and electronic components business APC Technology (APC:AIM) is ripe for investment now that the shares have eased back to more attractive levels. Challenges remain but we can see the counter re-rating by 25% or more over the next 12 ...'

Snippet.

[nedelcu77] 10/8/2014 07:23

0.35 is profit ,not pbt

[nedelcu77] 10/8/2014 07:15

2014 pbt 0.35 eps 0.6

[butchcasio] 08/8/2014 15:20

2.30 million

[nbudh80] 08/8/2014 12:27

Anyone aware of PBT forecast for 2014?

[butchcasio] 01/8/2014 19:09

Just an observation, but this has held up really well the last couple of days.

[brownie69] 01/8/2014 10:12

Decent looking contract. APC trying to turn a corner here.

[battlebus2] 01/8/2014 08:20

Yep i hope in time to see £1 but i'll settle for 50p my initial target.

[cheshire man] 01/8/2014 08:06

Think we will well get our GCO money back here :-)

[battlebus2] 01/8/2014 08:03

Yep bought back in a few weeks ago at 38p only to find i'm now the owner of more shares with the surprise deal with GCO. Held for years from 15p to 55p.

[cheshire man] 01/8/2014 07:52

You here too BB ?

[battlebus2] 01/8/2014 07:48

Contract win

Further to its announcements on 16(th) and 28(th) July 2014, APC Technology Group PLC (AIM: APC), is pleased to confirm that it has received the anticipated order valued at GBP1m from one of the UK's major food and clothing retailers for the supply of LED lighting to be installed into refrigeration units in its approximate 500 stores. The order, which has an initial value of GBP1 million, is expected to increase in value when the full 500 stores have been surveyed and this contract is anticipated to be part of a wider roll out of low energy lighting to this retailer in which the Group hopes to participate.

Minimise remains in the final stages of negotiations for orders with other new and significant customers in various market sectors which, if placed, will generate significant growth and further reduce reliance on any one customer in the next financial year.

[21trader] 31/7/2014 21:13

You need to calm down.

I have a right to express my view to a terrible deal for GCO shareholders. You think differently so deal with it.

[butchcasio] 31/7/2014 16:40

21, have you read in detail anything that was published? Have you phoned GCO or Bob Holt to gain a better understanding of what this could mean of both companies?


I know you'll say yes regardless. But, you'll do well to hold onto your shares. I think you'll get all your obey back and then some.


If you hold through 2017 and the deregulation of water, you'll multi bag IMO.

DYOR etc.

[21trader] 31/7/2014 16:17

So iffy management acquire new company with paper with more iffy management that
tell the market the turnaround is complete, business is much better the balance sheet is much improved but we are going to flog the company for next to nothing to stuff you.

You have to love aim. No wonder so many people day trade now when investing is
so dodgy with iffy companies and management

[21trader] 31/7/2014 16:15

Personally I would not touch this with a bargepole but if other mugs wish to and then push up the price so I can sell my GCO for a reduced loss then great !