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APC Apc Technology Group Plc

9.875
0.00 (0.00%)
19 Apr 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Apc Technology Group Plc LSE:APC London Ordinary Share GB0000373984 ORD 2P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 9.875 0.00 01:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

APC Technology Group PLC Interim Results (1231C)

11/04/2017 7:00am

UK Regulatory


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TIDMAPC

RNS Number : 1231C

APC Technology Group PLC

11 April 2017

11 April 2017

APC Technology Group PLC

("APC", the "Company" or the "Group")

Unaudited Interim Results for the six months ended 28 February 2017

APC Technology Group PLC (AIM: APC), the provider of design-in, specification and distribution services for specialist electronic components, products and systems, announces its interim results for the six months ended 28 February 2017.

Financial Highlights

- Operating profit before exceptional items of GBP0.4m, representing a significant improvement from the GBP0.1m operating loss in the comparative period

- Total profit for the period of GBP0.1m (H1 2016: GBP1.9m loss); first reported profit since the year ended 31 August 2014

- Revenue of GBP8.3m, compared to GBP9.5m in the comparative period; the main difference due to GBP1.6m of residual revenue from the multi-year Morrison's contract included in prior period

- Gross margin of 34.4% in the period represents a strong margin for the lower fixed cost, design-in distribution business

   -      Administrative expenses reduced by GBP1.2m from same period last year 
   -      Cash from earnings of GBP0.3m, before net investment in working capital improvement 

- Working capital (excluding net debt) improved by GBP0.5m and net debt reduced by GBP0.3m compared to 31 August 2016, reflecting a strengthened balance sheet position

Operational Highlights

- Green Compliance Water Division Limited sold in October 2016 for a total consideration of GBP1.8m (GBP0.8m cash and GBP1.0m in repayment of debt). The transaction included the disposal of GBP0.7m of future liabilities under operating leases

- Group re-centred on the proven business model of specialist electronic components, products and systems design-in distribution

- GBP8.25m first half bookings for the refocused business with March 2017 Group bookings of GBP2.1m underpinning confidence in the new business model and a profitable outlook for the full year

- Significant follow-on orders received from long standing customer relationships and significant new orders gained through new preferred supplier agreements signed with major blue chip customers

- Tony Lochery appointed Non-Executive Chairman and joined the Board as a Director on 24 February 2017

Commenting on the results, Richard Hodgson, Chief Executive, said:

"I am satisfied that all the effort that has been spent in the past 18 months in restructuring the Group has resulted in a return to profitability and as the turnaround reaches its conclusion that we can focus fully on developing our core businesses. We are now very well positioned as a design-in, specification and distribution business in the markets we serve, for a return to profitable growth.

I am also pleased to welcome Tony Lochery to the Board. His executive experience will provide invaluable guidance to all aspects of the business as we move forward."

Enquiries

APC Technology Group PLC +44 (0) 330 313 3220

Richard Hodgson, Chief Executive www.apcplc.com

Michael Thompson, Finance Director

   Stockdale Securities Limited (Nominated Adviser and Broker)           +44 (0)20 7601 6100 

Mark Brown / Antonio Bossi / Edward Thomas

Board review

The Board is pleased to report the interim financial results for the six months ended 28 February 2017.

The actions taken over the past 18 months to address cost, efficiency, and strategic focus are reflected in the financial performance, with a small profit being reported for the first time since the year ended 31 August 2014.

Since the beginning of the current financial year, the Board has continued to implement a strategic realignment of the business as a design-in distributor of specialist electronic components, products and systems.

The most significant action in this regard was the sale of Green Compliance Water Division Limited, which completed on 13 October 2016. This sale provided cash to support working capital and strengthen the core business, which is profitable and cash generative.

The design-in distribution business is organised around technology portfolios, each with a sales leader, supported by a shared service framework of marketing, sales, logistics and administration. Our technology portfolios are now aligned around:

High Reliability - high-reliability electronic components, semiconductors, and power solutions, selling primarily into the aerospace and defence industries;

RF and Microwave - capacitors and resistors, filters, semiconductors, amplifiers, and switches, selling primarily into the industrial, defence, and medical industries;

Embedded Processing, Sensors and Connectivity - single board computers, touch-screen componentry, GPS, environmental monitoring and sensors selling into the general industrial market;

Lighting Technologies - high-end architecturally specified LED lighting and industrial optoelectronic devices for embedded applications, selling into the facility management, office, retail, municipal, healthcare, and industrial manufacturing markets; and

New Technologies and Product Lines - new product lines that have proven markets and existing revenue streams that are being developed as potential future growth drivers, including: infection prevention, time and frequency synchronisation, Internet of Things, obsolete component location and testing, and energy performance measurement.

Corporate costs are continuing to be challenged and adjusted to increase profitability and lower the monthly breakeven point to ensure the business can be cash generative through all business cycles. In particular, further office consolidation and streamlining of our back-office functions of finance and human resources has occurred with greater expense control also implemented across the business.

The Board is confident that the core business can grow organically. Our suppliers are very supportive and many have seen strong growth in their non-UK markets. With a renewed attention to the basics of the design-in distribution business, we expect this same success will be reflected in the UK market over the coming years.

Summary of Financial Performance

Overall revenue for the period was GBP8.3m (2016 H1: GBP9.5m), representing a decrease of 12.6% over the corresponding period in 2016. This drop is primarily attributable to the residual revenue generated in 2016 H1 from the end of the multi-year Morrison's contract, which contributed GBP1.6m in that period.

Excluding this fall in Lighting Technology sales, the other core design-in distribution businesses rose to GBP5.9m in the period, an increase of 20.3%, over the same period last year as they capitalised on a particularly strong order book for high-reliability components coming into the period.

This change in revenue mix for the business meant that overall gross profit margin for the period was 34.4%. This slight decrease from 35.8% for the year ended 31 August 2016 still represents a strong margin for the lower fixed cost, design-in distribution business.

Operating profit before exceptional and non-recurring expenses, share based payments, interest, and tax was GBP0.4m (2016 H1 loss: GBP0.1m). The most significant contributor to the improvement is the reduction in administrative expenses of GBP1.2 million compared to the prior period. This is a result of headcount reductions, consolidation of offices, and improved cost control.

Exceptional and non-recurring expenses incurred in the period of GBP0.2m (2016 H1: GBP0.8m) are represented by reorganisation costs for personnel reduction (GBP0.3m), which were incurred to achieve cost savings and align staff requirements with business focus, foreign exchange losses (GBP0.1m), and onerous lease provisions (GBP0.1m), offset by release of liabilities from dormant and dissolved subsidiaries (GBP0.3m).

Taking into account exceptional and non-recurring expenses, share based payments, interest, and tax, the Company produced a GBP0.1m profit on the bottom-line for the period, compared to a loss of GBP1.8m in 2016 H1. This marks a significant turnaround in the business, especially in light of the decrease in revenue and gross profit.

Balance Sheet and Cash Flow

Working capital (excluding net debt) improved GBP0.5m through the period, from a deficit of GBP1.6m at 31 August 2016 (excluding assets held for sale) to a deficit of GBP1.1m at 28 February 2017. Trade and other receivables decreased by GBP1.0m during the period due to both improved working capital management and lower sales towards the end of the period. Inventory reduced by GBP0.2m due to improved stock management. Trade and other payables reduced by GBP1.6m as cash from improved management of receivables and inventory, together with the net proceeds from the sale of Green Compliance Water Division Limited, was directed to reducing trade and other liabilities to reduce overall balance sheet risk.

Net debt at the end of the period was GBP2.9m, including GBP0.2m of cash, GBP2.5m drawn on the invoice finance facilities and GBP0.6m of unsecured loan notes from shareholders (due July 2018). This is down from net debt of GBP3.2m at 31 August 2016, a reduction of GBP0.3m in the period.

Cash for the period declined by GBP0.2m to GBP0.2m. Earnings produced a positive cash flow from operations of GBP0.3m (excluding working capital). The sale of Green Compliance Water Division Limited generated GBP0.6m of cash. Cash generated in the period was used to improve net working capital (GBP0.5m) and to service debt (GBP0.6m).

Outlook

The Company has made significant progress in producing its first profit since the year ended 31 August 2014.

The Board acknowledges that there is much more work to do, not only to continue to improve efficiency but also to grow revenue. Having achieved profitability, positive cash flow, and reduced balance sheet risk, the focus now is on leveraging supplier and manufacturer relationships within our existing technologies. Our immediate aim is to increase the order book and cash generative sales. We feel confident that this will occur in the coming periods.

The Board would like to thank the Group's customers, suppliers, employees, and shareholders for their hard work and support through the past two years.

The Board

11 April 2017

 
                                               CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE 
                                                                                          INCOME 
                                                         for the 6 months ended 28 February 2017 
================================================================================================ 
                                                  6 months           6 months               Year 
                                                     ended              ended              ended 
                                               28 February        29 February          31 August 
                                                      2017               2016               2016 
                                               (unaudited)        (unaudited)          (audited) 
                                                    GBP000             GBP000             GBP000 
                                                                     Restated 
                                   Note                                     * 
 
 Revenue                            3                8,304              9,472             17,961 
 Cost of sales                                     (5,445)            (5,941)           (11,523) 
                                         -----------------  -----------------  ----------------- 
 Gross profit                                        2,859              3,531              6,438 
 Administration expenses                           (2,475)            (3,649)            (6,116) 
 Operating profit / (loss) 
  before exceptional and 
  other items                                          384              (118)                322 
 Exceptional and non-recurring 
  expenses                          4                (154)              (764)            (3,026) 
 Share based payments                                 (26)               (46)               (51) 
 Operating profit / (loss)                             204              (928)            (2,755) 
 Finance costs (net)                                 (162)              (116)              (331) 
                                         -----------------  -----------------  ----------------- 
 Profit / (loss) before 
  taxation                                        42                  (1,044)            (3,086) 
 Taxation expense                                      26                  32                 - 
                                         -----------------  -----------------  ----------------- 
 Profit / (loss) for the 
  period from continuing 
  operations                                      68                  (1,012)            (3,086) 
 Loss for the period from 
  discontinued operations                            -                  (782)            (9,789) 
                                         -----------------  -----------------  ----------------- 
 Profit / (loss) for the 
  period                                          68                  (1,794)           (12,875) 
                                         -----------------  -----------------  ----------------- 
 
 Other comprehensive income 
 Currency translation movement                                          (119) 
  arising on consolidation                               -                                    - 
                                         -----------------  -----------------  ----------------- 
 Other comprehensive income                       -                     (119)                 - 
  for the period 
 Total comprehensive income 
  for the period                                  68                  (1,913)           (12,875) 
                                         -----------------  -----------------  ----------------- 
 
 * See Note 6 
 
 
 Basic earnings per share           5                 0.1p             (2.0p)            (12.4p) 
 Diluted earnings per share         5                 0.1p             (2.0p)            (12.4p) 
 Earnings per share on 
  operating profit - before 
  exceptional and non-recurring 
  expenses and share based 
  payments                          5                 0.3p             (0.2p)             0.3p 
 
 
                                                    CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL 
                                                                                         POSITION 
                                                          for the 6 months ended 28 February 2017 
================================================================================================= 
                                              28 February          29 February          31 August 
                                                     2017                 2016               2016 
                                              (unaudited)          (unaudited)          (audited) 
                                   Note            GBP000               GBP000             GBP000 
 
 Non-current assets 
  Intangible assets                              7,378               16,008              7,378 
  Property, plant and equipment                       99                180                  132 
  Financial asset                                    -                1,540                 - 
                                                 7,477               17,728              7,510 
 Current assets 
  Inventories                                      897                1,925               1,080 
  Trade and other receivables                     2,775               5,789               3,751 
  Current tax asset                                  -                 38                   - 
  Cash and cash equivalents                          244               981                 444 
                                                  3,916              8,733                5,275 
  Assets held for sale              6                 -                   -               3,036 
                                                  3,916              8,733                8,311 
 
 Total assets                                  11,393              26,461                15,821 
 Current liabilities 
  Trade and other payables                        (4,777)              (9,009)            (6,416) 
  Borrowings                                      (2,552)              (2,951)            (3,027) 
                                                  (7,329)             (11,960)            (9,443) 
  Liabilities directly 
   associated with the assets 
   held for sale                    6                -                      -             (2,395) 
                                                  (7,329)             (11,960)           (11,838) 
 Total assets less current 
  liabilities                                   4,064              14,501              3,983 
 Non-current liabilities 
  Financial liabilities                             (555)                (648)              (578) 
  Deferred tax liability                               -                 (828)                  - 
 
 Net assets                                     3,509              13,025              3,405 
                                         ================  ===================  ================= 
 Equity attributable to 
  equity holders of the 
  company 
  Called up share capital                         2,556              2,258                2,556 
  Share premium account                          12,895              12,076              12,895 
  Share option valuation 
   reserve                                           574                 543                 548 
  Merger reserve                                   4,635              4,635               4,635 
  Translation reserve                                   -                (129)               (10) 
  Retained earnings                              (17,151)              (6,138)           (17,219) 
 Equity attributable to 
  equity holders of the 
  parent                                           3,509             13,245              3,405 
  Non-controlling interests                             -                (220)               - 
 
 Total equity                                      3,509           13,025              3,405 
                                         ================  ===================  ================= 
 
 
 CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 
  for the 6 months ended 28 February 2017 
======================================================================================================================================================================================================== 
                     Attributable to the equity                                                                                                                      Non-controlling 
                      holders of the parent                                                                                                                             Interests 
                    --------------------------------------------------------------------------  ------------------------  ---------  ---------  --------------      ---------------- 
 
                                                                       Share 
                                                 Share                option 
                                 Share         premium             valuation            Merger               Translation              Retained                              Retained 
                               Capital         account               reserve           Reserve                   reserve              earnings           Total              Earnings               Total 
                                GBP000          GBP000                GBP000            GBP000                    GBP000                GBP000          GBP000                GBP000              GBP000 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 For the 6 months 
 ended 28 February 
 2017 
 At 1 September 
  2016                           2,556          12,895                   548             4,635                      (10)              (17,219)       3,405                         -           3,405 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 
 Profit for the 
  period                             -               -                     -                 -                     -                      68             68                        -                68 
 Other                                                                                                             - 
 comprehensive 
 income                              -               -                     -                 -                                              -             -                        -                - 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 Total 
  comprehensive 
  income                             -               -                     -                 -                     -                      68              68                       -                68 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 
 Transactions 
 with equity 
 holders 
 of the parent 
 Share option 
  charge                             -               -                    26                 -                     -                         -           26                      -                 26 
 Disposal of 
  foreign 
  subsidiary                         -               -                     -                 -                    10                         -           10                      -                  10 
                                     -               -                    26                 -                    10                         -           36                      -                 36 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 
 At 28 February 
  2017 (unaudited)               2,556          12,895                   574             4,635                    -                   (17,151)        3,509                      -              3,509 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 
 For the 6 months 
 ended 29 February 
 2016 
 At 1 September 
  2015                           1,831          11,302                   497             4,635                      (10)               (4,344)        13,911                   (220)           13,691 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 
 Loss for the 
  period                             -               -                     -                 -                    -                    (1,794)         (1,794)                     -             (1,794) 
 Other 
  comprehensive 
  income                             -               -                     -                 -                (119)                          -           (119)                     -               (119) 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 Total 
  comprehensive 
  income                             -               -                     -                 -                     (119)               (1,794)         (1,913)                     -             (1,913) 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 
 Transactions 
 with equity 
 holders 
 of the parent 
 Issue of new 
  shares                           427             852                     -                 -                         -                     -           1,279                     -               1,279 
 Costs associated 
  with share issue                   -            (78)                     -                 -                         -                     -            (78)                     -                (78) 
 Share option 
  charge                             -               -                    46                 -                         -                     -              46                     -                  46 
                                   427             774                    46                 -                         -                     -           1,247                     -               1,247 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 
 At 29 February 
  2016 (unaudited)               2,258          12,076                   543             4,635                     (129)               (6,138)          13,245                 (220)              13,025 
                    ------------------  --------------          ------------          --------  ------------------------      ----------------  --------------      ----------------  ------------------ 
 
    Attributable to the equity holders                                                                                                                               Non-controlling 
    of the parent                                                                                                                                                       Interests 
 ---------------------------------------------------------------------------------------------------------------------------  -----  ---------  --------------      ---------------- 
 
                                                                       Share 
                                                 Share                option 
             Share                             premium             valuation            Merger               Translation              Retained                              Retained 
           Capital                             account               reserve           Reserve                   reserve              earnings           Total              Earnings               Total 
            GBP000                              GBP000                GBP000            GBP000                    GBP000                GBP000          GBP000                GBP000              GBP000 
 For the year 
  ended 31 August 
  2016 
 
 At 1 September 
  2015 (audited)                 1,831          11,302                   497             4,635                      (10)               (4,344)        13,911                   (220)              13,691 
                    ==================  ==============      ================      ============      ====================      ================  ==============  ====================  ================== 
 
 Loss for the 
  year                               -               -                     -                 -                         -              (12,875)        (12,875)                     -            (12,875) 
 Other                                                                                                                 - 
 comprehensive 
 income                              -               -                     -                 -                                               -               -                     -                   - 
                    ------------------  --------------      ----------------      ------------      --------------------      ----------------  --------------  --------------------  ------------------ 
 Total 
  comprehensive 
  income                             -               -                     -                 -                         -              (12,875)        (12,875)                     -            (12,875) 
                    ------------------  --------------      ----------------      ------------      --------------------      ----------------  --------------  --------------------  ------------------ 
 
 Transactions 
 with equity 
 holders 
 of the parent 
 Issue of new 
  shares                           725           1,756                     -                 -                         -                     -           2,481                     -               2,481 
 Disposal of 
  non-controlling 
  interest                           -               -                     -                 -                         -                     -              -                    220                 220 
 Costs associated 
  with share issue                   -           (163)                     -                 -                         -                     -           (163)                     -               (163) 
 Share option 
  charge                             -               -                    51                 -                         -                     -              51                     -                  51 
                                   725           1,593                    51                 -                         -                     -           2,369                   220               2,589 
                    ------------------  --------------      ----------------      ------------      --------------------      ----------------  --------------  --------------------  ------------------ 
 
 At 31 August 
  2016 (audited)                 2,556          12,895                   548             4,635                      (10)              (17,219)         3,405                       -               3,405 
                    ==================  ==============      ================      ============      ====================      ================  ==============  ====================  ================== 
 
 
 
                                                        CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 
                                                               for the 6 months ended 28 February 2017 
====================================================================================================== 
                                                      6 months            6 months                Year 
                                                         ended               ended               ended 
                                                   28 February         29 February           31 August 
                                                          2017                2016                2016 
                                                   (unaudited)         (unaudited)           (audited) 
                                     Note               GBP000              GBP000              GBP000 
 
 Reconciliation of cash 
  flows from operating 
  activities 
 Profit / (loss) before 
  taxation including discontinued 
  operations for the period                                42              (1,826)            (12,875) 
 Share of results of associates                            -                  (16)               - 
 Gain on disposal of property, 
  plant and equipment                                      (6)                  -                 - 
 Impairment loss on assets 
  held for sale                                             -                   -                6,704 
 Loss on investment in 
  associates                                                -                   -                1,095 
 Loss on discontinued 
  subsidiary interests                                      -                   -             1,120 
 Finance costs (net)                                     162                 115                 400 
 Taxation receipts                                        26                   23                  29 
 Depreciation of property, 
  plant and equipment                                     45                   47                95 
 Amortisation of intangibles                              -                  345                   - 
 Decrease in inventories                                 183                 708                846 
 Decrease / (increase) 
  in trade and other receivables                         982                 (549)             (1,025) 
 Decrease in trade and 
  other payables                                       (1,635)               (611)               (685) 
 Share-based payments 
  charge                                                  26                   46                 51 
 Net cash used in operating 
  activities                                             (175)             (1,718)             (4,245) 
                                           -------------------  ------------------  ------------------ 
 
 Cash flows from investing 
  activities 
 Acquisition of property, 
  plant and equipment                                     (12)                  -                 (23) 
 Sale of property, plant, 
  and equipment                                             6                   -                   - 
 Sale of subsidiary company           6                  641                    -                   - 
 Sale of investment in 
  associates                                                -                   -                319 
 Net cash from investing 
  activities                                            635                     -            296 
                                           -------------------  ------------------  ------------------ 
 
 Cash flows from financing 
  activities 
 Finance costs (net)                                   (162)                 (115)               (400) 
 Proceeds of share issue                                   -               1,201               2,318 
 Finance leases                                          (19)                 (12)                (22) 
 Short-term borrowings                                 (479)                 386               1,340 
 Repayment of loan notes                                    -                   -                 (60) 
 Net cash from financing 
  activities                                          (660)                1,460               3,176 
                                           -------------------  ------------------  ------------------ 
 Decrease in net cash                                    (200)               (258)               (773) 
                                           -------------------  ------------------  ------------------ 
 
 Cash and cash equivalents 
  as at 1 September                                    444                 1,239            1,239 
 Decrease in net cash                                    (200)               (258)              (773) 
 Cash in assets held for 
  sale                                                     -                    -                (22) 
                                           -------------------  ------------------  ------------------ 
 Cash and cash equivalents 
  as at end of period                                    244                 981               444 
                                           ===================  ==================  ================== 
 

NOTES TO THE INTERIM REPORT

for the 6 months ended 28 February 2017

   1.      General information 

APC Technology Group PLC is a public limited company ("the Company") incorporated in the United Kingdom under the Companies Act 2006 (registration number 01635609).

The Company is domiciled in the United Kingdom and its registered address is 6 Stirling Park, Laker Road, Rochester, Kent, ME1 3QR. The Company's Ordinary Shares are traded on the Alternative Investment Market ("AIM") of the London Stock Exchange. The principal activity of the Company and its subsidiary undertakings (together "the Group") is the design, specification, and distribution of specialist electronic components and systems.

   2.      Basis of preparation 

This unaudited consolidated interim financial information has been prepared in accordance with IFRS as adopted by the European Union. The principal accounting policies used in preparing the interim results are those it expects to apply in its financial statements for the year ended 31 August 2017 and are unchanged from those disclosed in the Company's Annual Report for the year ended 31 August 2016.

The financial information does not contain all of the information that is required to be disclosed in a full set of IFRS financial statements. The financial information for the six months ended 28 February 2017 and 29 February 2016 is unreviewed and unaudited and does not constitute the Company's statutory financial statements for those periods. The comparative financial information for the full year ended 31 August 2016 has, however, been derived from the audited statutory financial statements for that period. A copy of those statutory financial statements has been delivered to the Registrar of Companies. The auditor's report on those accounts was unqualified, did not include references to any matters to which the auditor drew attention by way of emphasis without qualifying its report and did not contain a statement under section 498(2)-(3) of the Companies Act 2006.

The financial information in the Interim Report is presented in Sterling and all values are rounded to the nearest thousand pounds (GBP000) except where otherwise indicated.

   3.      Segmental information 

Operating Segments

IFRS 8 "Operating Segments", requires consideration of the chief operating decision maker ('CODM') within the Company. In line with the Company's internal reporting framework and management structure, the key strategic and operating decisions are made by the CEO, who reviews internal monthly management reports, budget and forecast information as part of this process. Accordingly, the CEO is deemed to be the CODM.

The Company operates within a single reportable segment, being the the provision of design-in distribution services for specialist electronic components, products and systems.

 
                              6 months        6 months             Year 
                                 ended           ended            ended 
                           28 February     29 February        31 August 
                                  2017            2016             2016 
                           (unaudited)     (unaudited)        (audited) 
                                GBP000          GBP000           GBP000 
                                              Restated 
                                                     * 
 Revenue by geographic 
  location 
 UK                              7,587           8,952           16,996 
 North America                     212             179              235 
 Europe and Asia                   505             341              730 
                          ------------  --------------  --------------- 
                                 8,304           9,472           17,961 
                          ------------  --------------  --------------- 
 * See Note 6 
 
   4.      Exceptional and non-recurring expenses 
 
                                           6 months            6 months                Year 
                                              ended               ended               ended 
                                        28 February         29 February           31 August 
                                               2017                2016                2016 
                                        (unaudited)         (unaudited)           (audited) 
                                             GBP000              GBP000              GBP000 
 Corporate re-organisation 
  - compromise agreements 
  and redundancy costs                        329                   373               1,543 
 Foreign exchange loss                          64                  154                 293 
 Corporate re-organisation 
  - dilapidations and onerous 
  lease provisions                              52                    -                 254 
 Costs associated with 
  aborted contract                              47                  149                 736 
 Corporate re-organisation 
  - professional fees                           18                   89                 200 
 Corporate re-organisation 
  - release of dormant 
  and dissolved subsidiary 
  liabilities                                 (356)                   -                   - 
 Costs incurred in the 
  preparation for acquisitions                   -                   13                   - 
                                              154                   778               3,026 
                                  -----------------  ------------------  ------------------ 
 
   5.      Earnings per share 

The calculation of basic earnings per share is based on the profit after taxation attributable to equity holders of the parent company for the period and the weighted average number of shares in issue during the period.

Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding by the dilutive effect of Ordinary Shares that the Company may potentially issue relating to its share option scheme.

Earnings per share on operating profit, before exceptional costs, amortisation, share based payments, and discontinued operations, are considered to be the most realistic measure of earnings and the calculation is based on the weighted average number of shares.

The result for the year and the weighted average number of shares used in the calculations are set out below:

 
                                             6 months            6 months               Year 
                                                ended               ended              ended 
                                          28 February         29 February          31 August 
                                                 2017                2016               2016 
                                          (unaudited)         (unaudited)          (audited) 
                                               GBP000              GBP000             GBP000 
 Continuing earnings: profit 
  (loss) attributable to 
  equity holders of the parent                     68             (1,425)            (3,086) 
 Discontinuing earnings: 
  loss attributable to equity 
  holders of the parent                             -               (369)            (9,789) 
                                     ----------------  ------------------  ----------------- 
 From profit (loss) for 
  the year                                         68             (1,794)           (12,875) 
                                     ----------------  ------------------  ----------------- 
 Earnings: operating profit/(loss) 
  before exceptional and 
  non-recurring expenses 
  and share based payments                        384               (173)               322 
                                     ----------------  ------------------  ----------------- 
 Weighted average number 
  of shares (000's)                          127,805            91,822             103,678 
 Dilutive/free shares (000's)                       -                  -                  28 
 Diluted number of shares 
  (000's)                                    127,805            91,822             103,706 
 
   6.      Sale of subsidiary company 

On 13 October 2016, the Company sold Green Compliance Water Division Limited, its water hygiene and treatment business, to Integrated Water Services Limited ("IWS"), a subsidiary of South Staffordshire PLC. The business was sold for total consideration of GBP800,000 and assumption of related invoice finance borrowings of GBP999,000.

As Green Compliance Water Division was sold subsequent to the 31 August 2016 balance sheet date but before results were reported, it was classified as an asset held for sale as at 31 August 2016. Assets and liabilities were separately disclosed on the balance sheet date and valued at net realisable value. The results of operations and loss on disposal were included in discontinued operations for the year ended 31 August 2016.

The results of operations of Green Compliance Water Division Limited for the comparative period ended 29 February 2016, a loss of GBP0.4m, has been reclassified to discontinued operations consistent with the presentation for the year ended 31 August 2016.

   7.      Copies of Interim report 

The interim report is available to view and download from the Company's website at www.apcplc.com. If shareholders would like a hard copy of the interim report, they should contact the Company Secretary.

This information is provided by RNS

The company news service from the London Stock Exchange

END

IR SFSFMSFWSEIL

(END) Dow Jones Newswires

April 11, 2017 02:00 ET (06:00 GMT)

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