Apc Technology Share Discussion Threads

[aishah] 28/9/2018 19:14

I remember accumulating EMR whilst Caledonia were dumping and prospects continued to be good. The stock doubled and more once they were cleared. Quite happy to add here whilst there's a seller about.

[pj 1] 28/9/2018 19:03

Ron

What that means is that YOU have little interest/ trust in the Company.

Can you not at least post an open opinion that sparks some debate rather than knock knock?

[battlebus2] 28/9/2018 18:47

Ron it’s like every stock, if there’s a seller we will make little headway until that overhang has cleared. This takes nothing away from the trading and forecasts for the company but provides a buying opportunity if you have any long term vision.

[ronwilkes123] 28/9/2018 17:16

Drip drip selling speaking the loudest at the minMarket has little interest/trust in the company and the forecasts

[playful] 25/9/2018 20:50

We already have a working relationship with Gooee so this article gives a little insight into where we can really see serious growth.

Real estate giant to trial Gooee IoT lighting (UPDATED) - LEDs

[glasshalfull] 24/9/2018 19:44

Said exactly the same to playful this evening...from weak hands to strong hands!

Kind regards
GHF

[brownie69] 24/9/2018 18:25

Good to see 1.6m shares traded today. Good volume healthy in my view as all sellers get accomodated leaving a tighly held register of holders.

[glasshalfull] 24/9/2018 17:46

Brownie - Agreed. I was simply attempting to clarify the broker forecasts & temper any other posters expectations that we might see further upgrades in light of today’s positive announcement.

I’m delighted with the progress & as playful mentions, the recent placing has raised the profile of the company with institutional investors, some that invested in the placing & others that were introduced to the company & may look favourably in taking a position in the fullness of time.

On another note, I’m v hopeful that APC will be attending Mello London to present to investors at the end of November. I’ll post further details as they become available. Again, excellent opportunity to engage with c.700/800 private investors & Fund Managers in attendance on their progress.

Kind regards,
GHF

[brownie69] 24/9/2018 15:44

GHF,

I dont discount future upgrades at all. Just saying that I think the house broker would have had good insight when coming up with the 12p F/C. If they start beating expectation, which i think they could then more upgrades will foollow for sure.

[playful] 24/9/2018 15:37

It seems to me inevitable that more institutional interest will eventually arrive as the company demonstrates they can execute on this strategy and that’s when things get interesting.

Like all thing’s patience is required, but most of the heavy lifting has been done already.

I believe we are holding a hidden gem in APC!

[geraldus] 24/9/2018 15:26

Yes,they certainly seem to be hot to trot.Buying these ma and pa outfits at a good price and big Bob's contacts in facilities management is the way to go.

[rinson] 24/9/2018 15:08

One statistic sticks out like a sore thumb - Bookings for the year from the enlarged group reported as £22.5M. The half year figure was £9M so £13.5M for second half? Sounds like phenomenal growth when you consider that the acquisitions would only have accounted for say £2m between them.

[glasshalfull] 24/9/2018 10:33

Appreciate you taking the time to update the thread & concur with your thoughts brownie.

One thing though, you mention that it may be too early for Stockdale to upgrade results on the back of Aspen. They did so at the end July/ early August by +32%, explaining this was in light of the Aspen acquisition. At the same time they raised their target price to 12p.

As mentioned, this effectively accelerates earnings growth from +35% growth to +79% growth for FY18/19.

So I wouldn’t expect a further upgrade as this only occurred 8-weeks ago & already factored in.

Kind regards
GHF

[brownie69] 24/9/2018 10:18

My take is that this is a decent "steady as she goes" set of results that are in line with expectations.

Too soon for the house broker to upgrade on the back of the Aspen deal. I'd imagine that they want to see more sign of synergies.

The real opportunity here is to do more bolt on deals, where cost synergies are taken and thus more of the acquired revenue drops to the bottom line. As RH and team continue to prove themselves I'd not be surprised to see the City support them. Given that this is turning into a growth stock a move to a PE of 12 is not unreasonable and by my calculations we are looking at an share price of circa 9.5p to 10.0p

[brownie69] 24/9/2018 10:14

Stockdale morning note to clients;

Today the Board has issued a post year end trading update covering the full year results to the end of August 2018. It is pleased to confirm that unaudited FY2018 results are expected to be in line with management expectations. The full year results will show further growth in both revenue and profit. The integration of Aspen Electronics is going well and synergies being progressed. In FY2018, the enlarged group took bookings of £22.5m, a healthy book to bill ratio. These positive results mean that net debt is expected to have decreased to £2.5m of which £2.3m related to amounts owed under its £6m invoice finance facility. Cash at the year-end increased to £0.8m. The group remains confident of further revenue and profit growth in 2019 and remains committed to its three main growth drivers: growth through increased bookings from existing bookings, growth through the signing of new complementary product lines and growth through bolt-on acquisitions.

We increased FY2019E forecasts at the time of the acquisition of Aspen Electronics, leaving FY2018E forecasts unchanged. We are forecasting revenues of £17.51m and PBT of £0.68m. The shares have risen by 5% over the last 12 months and by 4% over the last three months. We reiterate our Buy recommendation and 12p target price.

[18bt] 24/9/2018 08:44

GHF - thanks - I'd forgotten you'd posted that. Willbe interesting to see any Stockdale note out today.

[glasshalfull] 24/9/2018 08:36

Further to my update on Friday, delighted that Richard Hodgson & team have delivered a strong set of results. V well done 👏🏻👏🏻8079;🏻 Now on a prospective PER of 9 for the current year based on earnings growth of +79% this year (EPS 0.75p).

Kind regards
GHF






EDIT - What about you Ron? Your flurry of posts suggested you were concerned about trading. Have you reviewed your 5p price target in light of this morning’s positive update?

[ronwilkes123] 24/9/2018 08:31

Thoughts on the update ghf

[glasshalfull] 24/9/2018 08:30

18BT - See foot of post 888.

[18bt] 24/9/2018 07:53

Is anyone aware of any forecasts? Sharepad has 2018 turnover forecast of £17.5m, EBITDA of £1.2, PTP of £0.7m and EPS of 0.4p, for 2018 but nothing for 2019. But looking at the cash: last year was an outflow of £1m, this year seems to be +£0.6m, so those forecasts seem reasonable. Given bookings, turnover for 2019 should show decent growth. Aspen brought an EBITDA run rate of £0.55m, so it should be reasonable to expect a doubling of PTP in 2019, but it really does need some market forecasts.

[this_is_me] 24/9/2018 07:31

Positive update, short on any indication of revenue or profit numbers.

[glasshalfull] 21/9/2018 15:59

Afternoon Ron,

In answer to your question I’d appreciate a t/s & certainly wasn’t implying there wouldn’t be an update.

Just attempting to place another perspective on a flurry of posts that were questioning some small selling of the stock & suggestions that company performance was poor. Think you placed a 5p price on the stock & I’d be interested on any analysis you care to share on how you arrived at this price, especially when investors stumped up £2.5m @ 6.75p only 8-weeks ago?

As for prompts to share price improvement. Since the t/s on 21.09.17 for the FY last year there have been quite a few updates on trading. Certainly more than 2 per annum: -

05.12.17 - Results & confirmation of in-line trading
11.01.18 - Acquisition of FB & confirmation of in-line trading
22.02.18 - AGM update. Pleased with start to FY18
19.03.18 - Notice of results & business update
17.04.18 - H1 results & outlook (strategy)
03.07.18 - Positive update on FB acquisition(+33% increase order run-rate)
25.07.18 - Placing & confirmation of in-line trading

Not to forget they took the opportunity to speak with investors over the course of a full day & also to present at Mello 2018 (Derby) at the end of April 2018.

In summary, I feel they have been good in updating investors & the market. The RNS updates I’ve listed certainly confirm this.

Your query as to what will prompt the share to rise is down to the company performing as per the forecasts I described in my previous post. If they deliver the earnings growth Stockdale estimate... then the share price will take care of itself.

All IMHO as always.

Kind regards,
GHF

[ronwilkes123] 21/9/2018 14:49

Hi glasshalffull just a last question if as you imply the company may not update holders before final results having provided comment in the placing back in July - then what is going to be the prompt for the share price to rise moving forwards if they only speak to the market with results twice a year.Again good luck all

[glasshalfull] 20/9/2018 23:22

Evening folks,

Just logged on & saw 25 posts today... wondered if I’d missed some material news???!!!

Hopefully the company will issue an update to the market in the near future on trading & perhaps an initial update on how the Aspen acquisition is bedding in 2 months since acquiring. That said, in the placing RNS of 25.07.18 (5 weeks prior to year end) the CEO commented,

"We are delighted to have been able to complete the acquisition of such a premium-quality, complementary RF and Microwave business which has an excellent reputation and which is expected to lead to top line growth opportunities as part of the enlarged APC group. APC continues to trade in line with management expectations and we expect this acquisition to be earnings enhancing in its first full financial year. Following on from the Company's successful acquisition and integration of First Byte Micro, this is a further step in the Company's stated aim of consolidation led growth in its components division"

Therefore, an in-line statement with almost 11 months completed. Wouldn’t expect it to materially different from this following August trading.

I pulled up the latest Stockdale note which reiterated the in line statement & said,

“The acquisition is expected to be EPS enhancing and we have increased our FY2019E EPS by 32%. APC is trading in line for FY2018. We have raised our target price to 12p (10p). Buy.”

To clarify, Stockdale indicate that APC will have grown EPS by +27% in FY18 (the Full Year completed on 31.08.18) & following the 2x acquisitions this earnings growth will accelerate in FY19 by +78%.

I’ve been impressed by the turnaround to-date & acquisitions they’ve made appear an excellent fit.

Enough said.

Kind regards,
GHF

[ronwilkes123] 20/9/2018 18:26

I see my opinion isn't wanted hereGood luck all anyway