Apc Technology Share Discussion Threads

[wanttowin] 13/11/2018 14:59

getting a march on today !

[jpuff] 13/11/2018 14:58

Some activity and decent buying volume today. Anyone know why?

[davidosh] 01/11/2018 20:52

Just a reminder that APC will be exhibiting and presenting at our MelloLondon investor event in Chiswick W4 next month. MelloLondon is a two day event and starts on Monday 26th November. You can find out more here...



There will be 60 quality companies exhibiting and presenting plus some very well known investors, entrepreneurs, fund managers and market commentators providing excellent keynote talks on a range of investment subjects. A number of investment workshops will be available each day and a ShareSoc MasterClass on the final day.

[rinson] 25/10/2018 09:26

GHF.
Only fanciful because current share price is based on expected F18 performance rather than forward looking as is the norm. This situation may change once the results appear if they are in line with forecast as we are led to believe. If that happens we could see, based on current broker forecast of £1.64 PBT, a share price anywhere up to 14p if no further dilution.

Supposing APC needed to raise another £2m for further acquisition then the 14p would fall to 12p but still an immense gain over the current share price

Everyone is being cautious over Brexit but if it is to be a hard landing I believe a lot of US component companies who have appointed European distributors HQ'd in mainland Europe will need an independent UK distributor to ensure supplies to UK manufacturers continue without increased cost through duty charges. That would be quite an opportunity for someone.

[glasshalfull] 24/10/2018 18:12

Rinson - You are very welcome. I’d already provided several updates on valuation so took the opportunity to focus this time on the ambitions of the company.

As you say 42p - assuming no further dilution - isn’t as fanciful as it may appear at the moment.

:-)

Kind regards,
GHF

[rinson] 24/10/2018 13:23

GHF. Thanks for the write up. P/E's for Electrical companies are in the region of 20 so in three years if your profit projection comes true we should be looking at an share price of around 42p assuming no further dilution.

[playful] 24/10/2018 13:10

Lots of opportunities for us in the car park lighting sector and remember discussing this with Edward Ziff when he presented in Leeds for his company town centre securites.

This is what they have said recently on their car parking business, but no mention of lighting upgrades..

CitiPark continues to grow revenue and profits
Our car parking business goes from strength to strength and has seen income grow by 5% and profitability grow by 3.7% despite increases in business rates. We continue to innovate in technology including advances in the year in online booking, new car park management systems, and Automatic Number Plate Recognition barrier-less and cashless systems.

Edwards friends at Palace Capital will be at Mello so I'll introduce them to APC.

[playful] 22/10/2018 23:05

duplicate post

[playful] 22/10/2018 22:49

GHF, Excellent post.

For me it's simply the fact they are in the right sector at I believe the right time.

Whilst being a small company we have a good calibre of shareholders on the register and with the founder recently strengthening his support for the company that's certainly a big positive!

[glasshalfull] 22/10/2018 19:31

Evening folks,

I indicated last week that the route to growth in their Electronic Components arm was via bolt-on acquisitions. I’ve now had the opportunity to speak with the APC team and believe my understanding correct in this regard.

The acquisition of Aspen brought with it a business specialising in RF & microwave components that had test & measurement equipment. I’ve mentioned previously, but they confirmed this is highly complimentary to APC & extends their offering through the ability to provide in-house testing to customers, adds additional serivice lines & importantly a larger customer base, while also synergy benefits through the combination of both companies through removal of duplicate costs, for example.

This strategy in the components arm of the business has already been validated through an update confirming that the acquisition of First Byte in Jan 2018 had resulted in a revenue increase of +33% in the first 6 months following acquisition. We’ve also received a positive update on the recent Aspen acquisition which was said to be integrating, “very well” in their recent trading update.

I believe APC are ideally placed to consolidate in this highly fragmented components distribution sector & I’m quite sure that a larger component business would subsequently be far more appealing to many of larger supply lines. APC believe they can grow the Components arm to a £25m revenues in 3-years via this strategy.

While the Components side provides stable earnings & margins, & offers excellent bolt-on acquisition opportunities, it is clear that the APC team are observing fantastic organic growth in their Property Technology arm (Lighting, IoT& Performance Measurement) and in their Time Sync arm.

Forecasts estimate cica. +25% organic growth in both Property Tech & Time Sync. APC confirmed very ambitious targets in growing the Property Tech side of the business organically to c.£20m revenue business in 3 years & growing time sync - also organically - to c.£3m rev also in this time period.

So essentially they are looking to triple the size of the business on a 3 year view to c.£50m, and I’d hope it will be delivering PBT of c.£5m at this juncture.

I came away v impressed with the ambition & drive of the company, but would caution that I have a vested interest & have built a decent sized shareholding. Therefore a reminder that I’m clearly talking my own book. In fact I added to my position today at a small discount to July’s placing price.

Delighted that other investors will have the opportunity to meet the APC team in 5-weeks time at the Mello London event, when they can evaluate the investment case at first hand & meet with other investors.

Kind regards,
GHF

[diku] 21/10/2018 10:02

Where is your post?...your zip is stuck!...

[ronwilkes123] 18/10/2018 12:19

GHF though you can't read this certainly it isn't personal - just musings over the odd disconnect between posters thoughts on apc and the actual share price performance. The share price is down circa 15% from year high to today's low despite of improvements in trading.

[glasshalfull] 18/10/2018 09:04

Insider6 - I always consider management & broker expectation as one & the same but agree that it would be far more straightforward if statements simply stated this.

During the placing & acquisition of Aspen it was apparent that the Components arm of the business (60%) provides stable earnings but did not provide APC with the same degree of organic growth as either Property Technology or Time Sync do. Hence route to growth is through small bolt-on acquisitions.

APC currently estimate cica. +25% organic growth in both Property Tech & Time Sync & while the acquisition of Aspen brings with a number of benefits (I’ve alluded to these in a number of previous posts) it also opens up the prospect of organic growth from new lines as they attract new partners & cross-sell into the expanded customer base.

Kind regards,
GHF

[glasshalfull] 18/10/2018 08:47

Morning harrogate

I’m sure ronwilkes is a lovely guy (& I’m also assume that he acknowledges that its nothing personal :-) ... but just click on his name & choose the filter option if you wish some respite.


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ronwilkes12311 Oct '18 - 08:36 - 987 of 1009 (Filtered)

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Kind regards,
GHF

[harrogate] 18/10/2018 08:41

We all know life is tough at the moment - there is Brexit uncertainty and the general level of job insecurity and the worry about pension planning never mind the worry about what will happen to the world that our children have to live in going forward with the increased global threats from rogue states etc etc
One of life's pleasures is to follow your investments and see what is being said and when you see there has been a post on ADVFN you get excited. Is there a post with some useful background information on the company or the market that may help us with our investing for example
Then you see the post has been made by Ron Wilkes and the excitement level rises further - the fingers tremble on the keyboard - what can he have to say that will help us all in our investing, what incisive comment has he got today. It is all too much - today he has told us that until the share price goes up it will stay the same. Hard to state just how excited I am about the next post. Thanks

[ronwilkes123] 18/10/2018 08:27

Insider6 that is an excellent post - but I'm afraid there is a severe disconnect between the current share price and company prospects - until the share price begins to reflect the positivity by beginning moves upwards then apc share price will remain in the doldrums imo

[insider6] 17/10/2018 16:52

Good news from Solid State today, a company I know quite well and believe to be very similar to APC especially with their electronic component distribution arm.
According to the APC RNS 24/9/18 sales in the year ending 31/8/18 are expected to be in line with management expectation. Although we do not know what management expectation really is I doubt it will be less than the figure mentioned in Stockdale’s recent analyst’s note £17.5m. This figure displays reasonable organic growth considering the FBM acquisition was at the beginning of H2 and will probably not contribute more than £700k to the total sales for F18. Aspen as yet is still an unknown factor but I doubt their sales contribution will have been more than £500K at best. The RNS also reported that total orders received in the year were £23.5m which represents extremely solid growth over the half year figure of £9m, in fact 161% to be precise. Obviously Aspen have contributed to this number but the fact is APC have demonstrated they are well on the way to achieving their stated desire to achieve annual sales of between £50m and £75m in 3 to 5 years (RNS 25/7/18) and with further acquisitions those figures may yet prove to be conservative.

A few caveats from F17 results announcement RNS 5/12/17 to support my viewpoint.

‘Lighting for Facilities Management. APC Lighting has delivered £750k of lighting in the last six months to a leading property management company across three of the several thousand facilities that they manage. This has been achieved since signing a new preferred supplier agreement in June 2017. The current quoted pipeline is a further £2.5m across what is still a small percentage of the remaining estate.’

‘APC Time. New financial legislation, MiFID II, which comes into force in January 2018, has provided a boost in sales for APC Time, providers of time and frequency synchronisation. Under the new requirements, financial institutions and those involved in high frequency trading must comply with stricter limits for the time stamping of transactions. Significant orders have come from the London operation of a major French bank and an American multinational finance company.’

High-Reliability Electronics (trading as APC Hi-Rel) provides the technical sale of high-reliability, high temperature and high voltage electronic components into the defence and aerospace markets. APC represents a range of manufacturers in the UK market and works on projects that can run for 3 to 5 years. With these long projects, future bookings are a good measure of success. In the financial year 2017, bookings were £7.1m, which is a 34.6% uplift to 2016 total bookings.’

Well, as yet we have no breakdowns to compare if these impressive opportunities were capitalised on but the £23.5m orders came from somewhere.

IMHO, in the world of Electronic Component Distribution APC is one of only a handful of Electronic Component Distributors in the UK that efficiently orchestrates sales on behalf of manufacturing principles. They are not the only ones but well up in the league table. The components they sell are best in class in quality and reliability and as such it was no surprise that they were recognised in the top 2% of suppliers to BAE at their Partner 2 Win symposium in the USA 6/3/18 (RNS 19/3/18). Dealing with companies like BAE formulates a culture within a company and I am sure this has been put to use in all divisions of APC and in their stated intention to expand further through synergistic acquisitions.

APC’s stockbroker has a current target for the share price of 12p. I believe this is fair at this moment in time and that anyone buying today will reap excellent rewards in the future should the Companies projections be met.

Certainly over the last year there is no reason I can see that they will not.

[ronwilkes123] 17/10/2018 15:52

Another sale - drip drip

[ronwilkes123] 17/10/2018 13:08

Solid state hasn't almost circa 200 mill shares in issue - it's a lot more leaner than apc in that respect and looks to have much better prospects

[cockerhoop] 17/10/2018 10:10

Rinson,

Sorry forgot to add in the Aspen acquisition which is probably £5m of additional revenues. So probably getting to £19m distribution in 2019.

[ronwilkes123] 17/10/2018 09:52

Key phrase - the growth isn't organic