Apc Technology Share Discussion Threads

[pj 1] 23/5/2019 09:13

It could be exaggerated by traders with tight stops being hit who bought the Breakout.

[battlebus2] 23/5/2019 09:11

Indeed....

[igoe104] 23/5/2019 09:06

Some folks have no patience, they sell at the first hint of any slight profit. then they wonder why they don't make any decent money...........

Ride your winners.

[tiswas] 23/5/2019 09:01

Very surprised that I could buy 50k at 8p this am after reading positive posts above.

Opening position, let's see where we go from here.

[insider6] 22/5/2019 12:42

I have to say at first glance I was a tad disappointed with the interims.

My estimated calculations based on the published figures for Aspen & FMB were Revenue £11.6M, GP £3.246M, OP £807K and PBT £800K.

As we now know the Revenue was 8% lower than my estimate but even so the GP 6% higher and OP 3.71% higher. My mistake regarding the PBT was that I had omitted anything for reorganisation cost. These costs appear to be £158K so allowing for that APC has come in above my profit projections on all counts with a million less of Revenue.

That is quite some achievement and had I realised that when calculating my estimates I would have been far less grumpy yesterday morning.

As seasidehippo posted yesterday evening – “The company does now seam to have excellent control over costs and the highlight of these interim results for me was "Overheads on continuing operations were £2.91m.... Tight cost control limited the increase to 9.3% despite the acquisitions of Aspen and Wavelength”

Concerning Revenue I had expected more organic growth on the military component side but I am guessing a major hole there might be the delay in the Eurofighter order since Germany halted all arms sales to Saudi after the killing of Jamal Khashoggi. This has also affected sales of the Airbus A400M military transport aircraft that APC should be involved in.

Either way excellent results which should ensure profit expectation for the year end should be met or exceeded IMHO.

[robot ic1] 22/5/2019 08:24

Well what do you know ,

And I have a pile of these also , sitting on a nice rise now.

Hi Simon Templar , how is your other head , debsdowner .

[seasidehippo] 21/5/2019 17:36

Thoughts from my Deckchair.

Overall a most pleasing set of results.

The statement that Michael Thompson is not to be replaced was welcome and provided much needed clarification IMO. The company does now seam to have excellent control over costs and the highlight of these interim results for me was "Overheads on continuing operations were £2.91m.... Tight cost control limited the increase to 9.3% despite the acquisitions of Aspen and Wavelength"

Congratulations to APC Directors, management and staff. I am looking forward very much to the journey ahead.

I had a feeling there were good times ahead by the quality of the sandwiches at the AGM. Clearly another key indicator!

[this_is_me] 21/5/2019 13:21

Given the rise over the week or two before the results, I take it, that as usual, there will be no enquiry about insider trading.

[brownie69] 21/5/2019 13:00

I did manage to buy quite well inside the spread last week and yesterday using limit orders.

[whatsthepoint] 21/5/2019 12:33

Illiquid stocks = rip off the pi

[miahkaysor] 21/5/2019 12:11

Bought 100k ealier!! looking good!


we should break 10p very soon!


nai.dyor.etc

[playful] 21/5/2019 11:41

Delighted to see us in double figures

[cheshire man] 21/5/2019 11:21

Well after those results APC is now a confident hold for me :-)

[pj 1] 21/5/2019 08:48

brownie69. I'm perfectly happy with it being under the radar. Keep the traders and volatility away. Unless that's what you want off course...?

[debsdowner] 21/5/2019 08:22

Blimey Simon Templar picked a winner here fantastic results and the share price doesn't reflect the growth here.

[brownie69] 21/5/2019 08:10

I do hope the company get out there now and beat the PR drum a bit. APC deserve to attact a wider shareholder base.

[this_is_me] 21/5/2019 08:04

Excellent results and even more important the really positive language in the statement. There mow seems to be an excellent platform to take the company forward.

[jailbird] 21/5/2019 08:03

GHF,

Hats off on your analysis over the months...come to fruition

[brownie69] 21/5/2019 07:52

The pre results run up was not wrong!

Great numbers and a real validation of managements three pronged growth strategy. I'm not fully aware of any seasonality in this business but based on the growth rates and the scaleability we seem well placed to beat the market expectation for 12 months. This leads to broker upgrades and a continued increase in the share price
I could see this closing around 10p today.

[glasshalfull] 21/5/2019 07:50

Good morning folks,

Strong H1 FY2019

Well, I hoped the first signs would emerge of strong PBT & earnings growth with H1 results & APC certainly didn’t disappoint with metrics rising strongly across the board. A smashing set of results 😁

* Revenue +23.7% (£10.6m)
* EBITDA +46.5% (£851k)
* Adj Op profit +51.5% (£844k)
* Adj PBT +71.1% (£657k)
* Adj EPS +31.0% (0.4p)
* Op Margin +21.5% (now up to 7.9%)
* Net Debt reduced by (-£1.3m) (now down to [-£2.7m] with ALL remaining loan notes with a 10% interest rate extinguished)

As a reminder Stockdale (Shore Cap) previously had a 12p price target & current forecasts indicate +35% EPS growth this year to 0.74p EPS (see below). So the company is bang on track with Adj EPS of 0.4p in H1. I’ll be interested to see Stockdale’s broker update following these positive interims. Especially so, as the Wavelength acquisition only in these figures for 3 months & APC are now focusing on realising synergy benefits in H2 following the integration of the 2018 acquisitions.

Current forecasts (prior to any broker updates today)

Yr end Aug Revenue Adj PBT EPS Normalised

2017 £15.56m £418k 0.27p
2018 £17.15m £683k (+63%) 0.54p (+100%)
2019e £23.06m £1.63m (+23%) 0.74p (+35%)
2020e £24.99m £1.88m (+50%) 0.86p (+16%)
2021e £26.16m £1.96m (+22%) 0.89p (+4%)

Importantly CEO Richard Hodgson’s comments & outlook confirm confidence in the full year & indicate the company’s focus in in driving cash generative earnings growth. The statement also mentions the benefit of their 3 pronged growth strategy, especially when it comes to folding in small bolt-on acquisitions. Great to read that ALL 3 x acquisitions executed in 2018 are, “trading at a run rate higher than acquired levels” & have brought APC additional services (such as in-house testing) & the synergy benefits as 2019 progresses that I mentioned.

Good to get some further info on their Wavelength acquisition, which was the final one of 2018. As mentioned, it contributed 3 months here & was acquired at the end of Nov 2018 for £500k. Importantly, we now get an idea to the scale of the Wavelength business which delivered a gross profit of £472k to 31.12.18 so likely to add circa. £1.5m revenues to APC on an annualised basis. Again, that’s only half the story & during February’s AGM the management team indicated that the acquisition brought with it a strong roster of International manufacturers that would help them them expand into the UK Space market. APC have commented on the explosive growth rate of this sector previously & its importance to the UK. The Space market is growing at a lick & set to rise from £14.8bn in 2018 to £40bn in 2030. So the right sector to be in!

These interims also confirm that APC are operating in many other growth area’s that will mitigate the effects of any macro events. The operational review support confirms that APC Locator are operating in a market where they should see growing demand through the world shortage in components; RF & Microwave are enjoying strong market conditions with counter IED systems (think Gatwick disruption); APC Time now a one-stop-shop in the UK & provides solutions for the, “UK’s largest broadcasters”, which includes the BBC’s iP infrastructure upgrades across the UK & we also have APC’s Property Tech business which is seeing an increase in its customer base & we’ve already learned has worked on projects this year in The Shard & across Network Rail.

APC are growing across the board!

In conclusion, they are now delivering the growth many hoped. These are the first results where we observe, PBT, earnings, margins & cashflow rising strongly & I believe this is only the start. Management have kept a tight lid on costs & the strategy is clearly working. They have shown the ability to fold in earnings enhancing acquisitions & any additional ones should see earnings growth accelerate further.

Well done to Richard Hodgson & the APC team 👏🏻👏🏻8079;🏻

Disclosure : I hold > 1% equity

Kind regards,
GHF

[rivaldo] 21/5/2019 07:38

Excellent numbers - very solid. Good reduction in net debt. Looking good going forward too, with the comment "The Group continues to trade in line with management expectations".

[battlebus2] 21/5/2019 07:19

Yes very happy playful 👍

[playful] 21/5/2019 07:17

Excellent performance and hints of more growth opportunities...

"Robust pipeline of further bolt-on acquisition opportunities identified to aid this strategy."

[playful] 17/5/2019 22:23

I'm back from Mello tonight and can confirm we were a hot topic of conversation and much credit goes to GHF after his mention when asked on stage to select a company that merits special attention.