Apc Technology Share Discussion Threads

[insider6] 19/12/2018 12:55

Hiding one's light under a bushel comes to mind!

[brownie69] 19/12/2018 11:43

So we are looking at 35% EPS growth and a PER of 8.5.
With a diversified business and a platform to bolt further acqusitions into.

If this is not a screaming buy I dont know what is.

[ultimatewarrior] 19/12/2018 10:02

Still under that 3% ghf ?

[glasshalfull] 19/12/2018 10:00

...I’ve also found some cash down the back of the sofa. Added 50k.

Kind regards,
GHF

[playful] 19/12/2018 09:36

With it being Christmas I’m going to treat myself to some more APC shares.

[owenski] 18/12/2018 19:38

Thanks for the work GHF, appreciated.

[glasshalfull] 18/12/2018 18:31

Busy few days. Tweeted the undernoted a few minutes ago & have also provided a short write-up below.

- - -

APC @APCTechGroup

Enjoyed call with APC. They reiterated positive start to FY19 & comfortable with brokers est. of +36% EPS growth in 2019 (for PER 8) after +59% EPS growth in FY18

Results presentation available here



I’ve added FY19 est.to a results slide. Don’t know if I require to use HTML to post it here?...but I don’t have time anyway so its available via this link if you’re interested.



Some other points: -

* APC management reiterated their 3 x pronged growth strategy.

(1) Selling more of the technology and products that we have with our enlarged sales force

- Great vibe & momentum amongst team delivering per internal KPI’s. Staff incentivised. Driving sales across business with annual bookings for enlarged group £22.5m (see p6 of presentation).

(2) Signing new, proven technology partners

- The signing of new partners can have similar effect to that of a small acquisition. Reiterated the deal with 3D PLUS had worked out v well for both parties & on lookout for similar distribution deals.

(3) Strategic bolt-on acquisitions

- Both FB & Aspen have been integrated & delivering per expectations. Indicated that they had a strong pipeline of opportunities & could make a smaller bolt-on acquisition without any requirement to raise equity (I envisage similar to the FB acquisition in Jan 2018).

* The results RNS mentioned a small decrease in Gross Margin due to product mix BUT failed to mention the +27.5% increase in Operating Margins. Pleasing to learn that their brokers are indicating another material rise in Op Margins to circa.9% in 2019.

* The outlook statement in the RNS indicated they were mindful of any short term impact in respect of the MAIN TOPIC in EVERY news bulletin, day in, day out!!! - I don’t even want to mention the word - but they indicated that they HADN’T experienced any issues & had a strong Q1 under their belt.

In summary, I continue to be impressed with the management team & employees I’ve met since investing. The restructure was completed in 2017 & we’ve witnessed the strategy delivering profitable growth in 2018...with (hopefully) more of the same forecast in 2019.

The acquisitions appear an excellent fit with the existing business & management were clear that they will be looking at targets that can augment their existing business & add synergies. I’d therefore be hopeful that any acquisitions or new partner agreements would be immediately earnings enhancing.

Hope this update assists.

Kind regards,
GHF

[latifs100] 18/12/2018 18:02

any director buys ? holding fro 50p!!!!

[brownie69] 18/12/2018 14:05

Agreed Rivalo.

[rivaldo] 18/12/2018 10:54

Like most analysts, Stockdale's 12p target is how they value the business now "based upon the increased revenue and profitability of the enlarged group" following the Aspen acquisition.

Some targets are for the forthcoming period of 12 months or whatever, but AFAICS most value the business as it is at present.

[johnv] 17/12/2018 16:40

Is this 12p target for next 12 months?,6 months? or do they mean thats where they feel the price should be now.

[rivaldo] 17/12/2018 15:31

Good results today, in line with expectations. A decent outlook too, with natural caution re Brexit.

Stockdale retain their 12p target price. They forecast 0.74p EPS this year, reflecting £2.05m EBITDA and £1.63m PBT.

Today's reaction is on tiny volumes (just £60k traded) and a lack of buying interest given the state of the markets. Any such interest should result in the price bouncing back given the low valuation/m/cap. The question is if and when that will happen...

[brownie69] 17/12/2018 09:35

Decent steady as she goes results. Growth in sales, margin, operating profit and EPS with scaleability showing through. No negatives.

A different business compared to 3 years ago.

I like increasing profit and debt reduction. In a kinder market that should see the share price start to move ahead.

[this_is_me] 17/12/2018 09:22

It is a small company; nobody really cares except the likes of us.

[ultimatewarrior] 17/12/2018 08:21

Have they missed on forecast revenue for the year

[ultimatewarrior] 17/12/2018 08:14

Maybe general market jitters - but these results don't seem to interest the market at all

[pugugly] 17/12/2018 08:09

Market reaction - A big yawn -

[glasshalfull] 17/12/2018 07:46

Well done Richard Hodgson & team.

Per tweet
APC @APCTechGroup

Strong results.

Op Margin 6.3% (+29%)
Norm PBT £683k (+63%)
Norm EPS 0.54p (+64%)
Rev £17.1m (+10%)

Bookings annual run rate now up to £22.5m

Q1 FY18/19 in-line. Brokers previously estimating 0.75p EPS this year. Interested to see what Stockdale put out this morning.

Kind regards
GHF

[playful] 17/12/2018 07:26

Good results for the full year and continued growth in all divisions.

Operating profit, before exceptional and other non-recurring costs, of £1,078,000 was up 43% on the £756,000 achieved in 2017.

[kemche] 07/12/2018 10:24

"and through targeted bolt-on acquisitions."

Excellent news.

[rivaldo] 07/12/2018 07:23

Nice - a short and sweet update confirming results are in line with expectations:

"APC Technology Group PLC (AIM: APC), which provides the design, specification and distribution of specialist electronic products, component and systems, is pleased to confirm that the full year results for the period to 31 August 2018 will be announced on Monday 17 December 2018.

The Group continues to trade in line with management expectations and to make good progress in its three to five year strategy which is to grow through increased bookings from existing technologies, in particular those that sit in high growth markets; from the signing of new complementary product lines; and through targeted bolt-on acquisitions."

[glasshalfull] 03/12/2018 11:04

Sorry...typo. Multi-tasking.
As mentioned, I’ve no concerns.

Kind regards
GHF

[ultimatewarrior] 03/12/2018 10:38

Thank you for the response - the interim statement was actually 9-10 weeks ago not 5, 24th Sept As all listed companies then they have till the end of January 19 to publish

[glasshalfull] 03/12/2018 10:27

Morning ultimatewarrior

Sorry to burst you bubble but I don’t expect results to be out tomorrow.

As I understand from speaking to the APC team at Mello, they are likely to RNS a Notice of Results release date shortly. Nothing untoward, rather they made the acquisition of Aspen close to year end & also integrated FB into the group earlier this year.

They released a fairly detailed trading update 5-weeks ago, so I’m not expecting anything materially different & look forward to confirmation of a positive outlook as this was the sentiment Richard Hodgson, CEO expressed in his presentation at Mello London last week.

Kind regards,
GHF