Apc Technology Share Discussion Threads

[simon templar qc] 21/1/2016 07:56

The brokers are convinced.

[jailbird] 21/1/2016 07:47

Net debt is £1.9m but gross debt is £3.1mThe £1.2m in cash is paying off the interest.Invoice discount facility is being used as working capital, otherwise they will have to raise funds through dilution for working capital.It is not an ideal way but companies use it for the short term. But it can become a vicious circle if they allow it to continue too long I am more annoyed that they increased revenues by £10m or so but returned a higher loss without the exceptionals.It means they took on business which was loss making or at cost at best.So decisions made with these contracts .Hopefully lessons have been learnt .They have yet to prove themselves this year . That is why we are in single figures . The market is not convinced just yet, and market fears are not helping either .

[simon templar qc] 20/1/2016 18:25

Subject cash generation as forecast the invoice discount facility will simply not be required. Brokers see over £4 million cash in 2018.

[kemche] 20/1/2016 18:10

I do realise that they do not have any bank borrowings. For that they would require bank borrowing facilities.

[simon templar qc] 20/1/2016 17:52

No bank borrowings just an invoice discount facility of £6 million which was drawn down by about £2.5 million.

Net debt was less than £2 million at year end this year brokers forecast positive free cash flow.

I foresee no problems with debt.

[kemche] 20/1/2016 17:32

Simon, did they have any debt? I seem to forget. Was it large compared to the "cash in the bank"?

[simon templar qc] 20/1/2016 14:43

The distribution business generating cash on a daily basis and sales are ahead of expectations.

They had cash in the bank at year end and ample facilities to draw down.

Market nerves at the moment and the minute the buyers enter the share price responds as it did this afternoon at 8.5

[rinson] 20/1/2016 14:31

Pug: Maybe I did but if you make a decent margin and don't expand more than 30% over the year you should not need cash. And, they are not expanding turnover right now just increasing profit. If they need cash for an acquisition, that's another thing all together and assuming it is profit enhancing would be well received.

[simon templar qc] 20/1/2016 13:49

Company got ample facilities so far as I can see the fall is simply market nerves. Market limits tight.

[pugugly] 20/1/2016 13:34

rinson:- for working capital to fund increased business (imo) You yourself supplied the reason.

[rinson] 20/1/2016 13:30

We are told business is good in all parts of the Company through the recent news releases! We have a £6M facility in place! We are only taking profitable business! ESOS enquiries ramping! We have removed £1M in costs! Why should we need cash now?
The whole market is down and people are selling across the board - no one is immune.

[pugugly] 20/1/2016 13:14

In this market and with what I believe to be a significant overhang this (IMO) could drop back below 8p - Unless very positive news flow -

At 7.5p could be interesting UNLESS new funding round in the pipeline - Is so all bets are off -

[webpax] 20/1/2016 12:56

Fair point Simon. It is starting to look interesting again at these levels.

[simon templar qc] 20/1/2016 12:48

They cannot buy any shares if they are in possession of any price sensitive information and also the published accounts are not available as yet which also makes a difference.

Weak holders just being flushed out at the moment I am not unnerved.

[webpax] 20/1/2016 12:44

If directors were to buy at this level it would instil some confidence but they seem conspicuous by their absence.

[simon templar qc] 19/1/2016 16:33

I was thinking the same.

Either way I think it puts a floor under the share price. Someone happy to hold stock pending further news.

edit:

Another possibility is a holder switching account or a holder switching institutions.

[jailbird] 19/1/2016 15:58

It is rollover .Tiny spread as this was a large sized rollover

[pugugly] 19/1/2016 15:06

Large late trades [508,982 each side](could be a large PI or small II) marked from yesterday at 9.0 /9.01.

Could this be the last of the overhang being cleared ?

Possibly but indications I got was that the over-hang was bigger or could it be profit taking ? However looks as though a significant buyer in the market at 9p so unless now filled this might be the new downside resistance (imo & dyor etc)

[simon templar qc] 18/1/2016 09:16

rinson,

I know I have already done my own analysis.

Share price moving on small trading now I suspect a spike coming soon. Any bit of news the share price will jump quickly.

[rinson] 17/1/2016 20:58

Simon: "The "Internet of Things" could take off a lot quicker than the market expects...."
The forecasting model that Cantor have used for Distribution only appears to use historic sales as the reference point yet IoT is the next big thing! IMHO Distribution revenue growth will exceed £15m in F17

[playful] 17/1/2016 16:27

Thanks S.T

The article provides a great example:

Smart Parking – sensors are being installed across Hamburg to alert truck drives to available parking in real time. This speeds traffic flow and reduces pollution throughout the city

Just think of all the councils in the UK wanting to increase car parking meter revenue with our sensors linked to a simple mobile app, now that would be a great idea.

[rinson] 17/1/2016 12:36

playful: Well spotted mate. Remember APC have an investment in Invisible Systems and also introduce their Cloud Based systems to customers to monitor power usage and for water conditioning monitoring. That's why APC are so successful in winning contracts. They can prove the cost savings to the customer with hard facts. From memory I believe Inv Sys are based up north so sure that they are also on top of this situation. As you know, Advanced Power Components have virtually every type of sensor franchised to themselves and will hopefully become a major partner in this project.

[simon templar qc] 17/1/2016 10:27

This country at the cusp of a revolution in "Internet of Things" its difficult to say how quickly it will develop but I expect quite quickly. The minute they see the demand take off the company would do well to increase its marketing of the products.

[playful] 17/1/2016 08:51

Well worth reading: