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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 Shares Traded Last Trade
  0.00 0.0% 9.875 0.00 00:00:00
Bid Price Offer Price High Price Low Price Open Price
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Electronic & Electrical Equipment 17.15 0.56 0.50 19.8 18
Last Trade Time Trade Type Trade Size Trade Price Currency
- O 0 9.875 GBX

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DateSubject
23/5/2019
09:08
glasshalfull: Morning guys, I wouldn’t get too hung up on the share price movement. The shares were 6.5p 3-weeks ago & were +60% at one point on Tuesday (mid 10.5p). There are a number of stale holders from the previous APC entity that will sell into strength & also the rapid share price movement in May will have brought in traders. Excellent post insider6 (post 1275). Thanks. Interim presentation now available HTTPS://apcplc.com/hideout-app/app-uploads/2019/05/APC_Update_Interim2019-052019.pdf I’ve had the opportunity to speak with management following results & congratulate them & the APC team on delivering as per the milestones they have provided to me over the 30 months I’ve monitored/ held the shares. Couple of points if I may: - * Acquisitions - They are currently in discussions with a couple of possibilities & would hope to conclude this year. However, they were at pains to point out that there would be no requirement to do so through a raise or placing. Any acquisitions concluded would be through their strengthened balance sheet. In other words, no dilution & any acquisition should be immediately earnings enhancing * APC Hi-Rel > Expertise in UK Space & now offer premier lines. Similar with APC RF & Microwave. Now one of the largest in the UK. * APC Time > Continuing to show v good growth & multiple opportunities across other sectors * Op Margin > Pleased that this is increasing as fixed costs under control. Also highlights synergies. Company are aiming to grow op margins further to c.10% in a few years so with stated £50m turnover aim in 2 1/2 years, this would hopefully generate £5m op profit There’s a lot more but reckon I’d be regurgitating many earlier comments. The one thing I do require to correct is that Wavelength derives 80% through commission. This was considerably higher than I thought & originally I believed their GP would equate to c.£1.5m-£;2m turnover per annum, when in fact it is a lot lower but comes straight through as commission & therefore gross profit. So, essentially I was expecting revenues some £1m higher than they were for the group, but have now corrected my model. Hope this whistle-stop tour assists. kind regards, GHF
21/5/2019
06:50
glasshalfull: 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
01/5/2019
17:12
glasshalfull: Great post insider6. Agree there should be a correlation between the share price & earnings. It’s been nice to see an uptick in the last few days and if APC deliver per forecasts then hopefully the share price will get a further boost. I’d take 15p on release of FY19 results if they grow earnings by +35% this year. We’ve now only 3 weeks until H1 2019 results are released & this time round we’ll have a full contribution from Aspen who were acquired a month prior to FY18. The 2018 Annual Report (p43) indicates on Aspen, ”One month's trading has been included within the consolidated Group results. Revenue of £466,000 and a profit before tax of £53,000 has been recognised.” So in 1 month of ownership (month of August 2018) Aspen delivered an impressive £53k. On such a short timescale it’s difficult to draw any firm comparisons, but we know from the acquisition RNS for Aspen they were forecast to deliver, ”Aspen has continued to grow in the year to 30 June 2018 and it is expected to report an adjusted EBITDA of £0.55 million.” Therefore, not unreasonable to factor in c.£600k PBT contribution from Aspen for FY19 I’d have thought (12 x £50k PBT per month). So, I’m hopeful we’ll observe Aspen weighing in; decent growth in APC Time (BBC infrastructure contract amongst others); the beefed up APC Locator doing well; APC Lighting continuing as preferred supplier with numerous FM companies...and hopefully adding more; the RF & Microwave side benefitting from increased IED jamming device orders (remember the chaos at Gatwick Airport with drones!!!) plus there are a number of other supply lines that have been added to the group in the last year such as 3D Space that will hopefully now be providing a decent contribution. I’m sure I’m only just scratching the surface. Just my take & delighted to see insider6 also kicking the tyres by attempting to reconcile valuation vs the current share price. We’re certainly on the same page in believing that the share price could materially re-rate. Kind regards, GHF
01/5/2019
16:05
insider6: Since APC fiscal year ending August 2017 and after the APC management review, PBT has risen each year from £0.42m in F2017 to £0.68m in F2018. The share price has remained stable over that period whilst the MC increased by over £3m. Obviously this was because of the increased number of shares in issue, but clearly illustrates that there should be a correlation between share price and PBT if the number of shares in issue does not change. Moving on to the current year, back in July 2018 the house broker was forecasting £1.64m PBT in our current year. There is no reason to assume this will not happen as management have recently stated that they are trading in line with expectations. We will know more about this on May 21st when the interims are announced but assuming year-end current projections are met or even exceeded then the share price should reach 15p once the final year end results are announced in December. GHF’s excellent post has illustrated the profitable growth potential of each of APC’s operating divisions and I believe it will not be long before we see an updated broker forecast to take into account the significant opportunities which have occurred with the latest acquisition since the last update.
29/4/2019
08:42
glasshalfull: Good morning folks, I’m currently writing up the constituents of my (fantasy football) portfolio & now getting round to my marauding full back...APC! The table below doesn’t copy over v well from Twitter so here is a direct link HTTPS://twitter.com/glasshalfull1/status/1122779437827801089?s=12 I’ve shared my views extensively on this investment thread, so the write-up should be viewed as a brief resume of the investment case IMHO. Nothing more. (#3) APC (APC Technology Group) - Exciting Growth * Share Price 6.6p * M/Cap £12.1m * Enterprise Value £15.1m (£2.3m drawn under an invoice discounting facility of £6m) * Shares in Issue 182.6m * Stock Rank (Neutral) 37 (Quality 6 / Value 72 / Momentum 55) Background APC Technology was established in 1982 & listed in 1996. The share price reached the heady heights of 68p in November 2013 but came unstuck in 2015 as it attempted to diversify. The shares plummeted to a low of 5.7p in June 2017 following series of placings to shore up the company. However, a new management team arrived a couple of years ago & administered considerable mouth to mouth resuscitation, stemmed losses by disposing of a loss making business, restructured & slashed costs by over £2m on an annualised basis. This took the company out of intensive care & they are now executing on their strategy to drive growth. This has been evidenced with a return to profitability in FY17, then in FY18 further improvement in Revenue, PBT & Op Margins ⬆️ to deliver 0.54p EPS that equates to earnings growth of +100%. Not too shabby! Despite this positive progress the share price has been range-bound for almost a year. Perhaps the market are simply, “once bitten, twice shy” when it comes to APC & are looking for confirmation they can deliver consistently? 🤔 What do APC do? Well they design-in & distribute high reliability, durable & long lifespan components & systems for critical applications. We are talking product lines where the end-use equipment is operating in extreme conditions or is running applications where component failure would be catastrophic in industries such as Space, Defence & Healthcare. They operate in 3 main areas :- * Components (60% of sales)they engage with their UK customer base to design-in products sourced & supplied throughout the world into a range of industries which includes military, aerospace, medical & energy. They have also expanded their product portfolio to take advantage of the growing UK space industry which is forecast to grow from £14bn in 2015 to £40bn in 2030. * Property Technology (30% of sales) is growing organically at +10% per annum & includes project based LED lighting solutions for many of the major Facility Management (FM) companies plus the emerging Internet of Things (IoT) tech for smart buildings solutions for buildings such as The Shard & across Network Rail properties * Time Synchronisation (10% of sales) is growing organically at +30% per annum. APC Time is being developed as the “go to” brand in the UK as evidenced by their work in a number of areas such as the financial sector & in media with the BBC who have chosen their tech across their iP infrastructure upgrades How will APC grow? There are 3 core elements to their growth strategy:- (1) Sell more of the tech they have - sales team reorganised & incentivised (2) Sign & sell new complementary tech (3) Bolt-on acquisitions - acquired 3 complementary businesses during 2018 Management have nailed their colours to the mast & declared targets to TRIPLE the size of the company on a 3-5 year view. They indicate the group will be delivering £48m revenue in 3yrs & in 5yrs up to £75m. With improving op margins I’d hope they’d be delivering PBT of at least £4m & £7m respectively in this timeframe. Stockdale have a 12p price target or +80% upside on the current share price. The undernoted forecasts indicate +35% EPS growth this year. 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%) In conclusion I don't think it fanciful to believe that APC will NOT ONLY deliver +35% earnings growth this year BUT also the strong possibility that we’ll observe future forecasts being upgraded as each component of their growth strategy becomes a reality. We have already witnessed a significant earnings upgrade for the company with the current FY2019e being upgraded by +30% in July 2018 from 0.57p EPS to 0.74p EPS following the acquisition of Aspen Electronics. The share price is only on a prospective PER of 8.9 for the current year which falls to a PER of 7.7 in the following year. It looks v good value IMHO. Disclosure : I hold > 1% equity Kind regards, GHF
24/2/2019
16:36
insider6: The following is an extract from my post immediately after last year’s AGM. “GHF, thank you for mentioning that Stockdale had increased their target price for APC stock to 10p. I was unaware of this which brings me to the only negative point I have to make about APC. I believe that we own in general a thinly traded stock. PI's always have a part to play in generating shareholder interest but this is very difficult when there is no known broker covering the retail sector. I believe this is the last piece of the jigsaw required to get the share price on the move again. What better incentive for staff to see their stock options actually worth something rather than be underwater as I suspect is currently the case. What better incentive to show a prospective franchiser to show we are not mere wordsmiths? Whatever, I believe we are beginning to see the light!” Well we are certainly beginning to see the light and what’s more I expect it to burn far brighter moving forward. And of course this will be helped by APC’s new strategy concerning financial PR, outlined at the AGM, which is being gradually implemented. No one can have failed to notice the increase in traffic on APC’s twitter feed or the attendance at Mello in both Derby and London last year. There is a story to be told and with targets having been met 2 years running they have confidence to tell it. It was clear to everyone who attended the AGM that there was a high level of positivity amongst the directors and staff. In the past the Chairman had been very circumspect when asked direct questions but not this year. He was happy to talk to everyone individually and although he could not answer some questions through insider trading rules everyone left with a warm feeling that we are on a one way ticket. On a personal note, I am often asked if I consider it a good time to buy APC shares. My answer is always that AIM market is notorious for manipulation on financial message boards so I have no comment to make. I was asked that question yesterday and gave an unequivocal yes based on the gut feeling I came away from the AGM with. As Stockdale pointed out on their latest analyst note, APC trades on an EV/EBITDA multiple of 8.3 based on this years earnings forecast against a sector multiple of 12.2. For 2020 on price earnings ratio APC is 8.3 compared to a sector average of 18. Considering the positive vibes coming from the BOD during the AGM we will not have too long to wait before the share price starts to correct as the interim figures will be known in April. Hopefully this will give assurance to the City that APC is more than capable of meeting annual forecasts and further II’s will come on board. Recently there was talk on this board of Harwoods having sold because they did not appear as a major shareholder in the annual report. It was confirmed at the AGM that this omission had been corrected on the website and that they were adding to their investment. One of the attendees made the comment that APC should be congratulated for getting Harwoods on board. He thought it was a major positive and that they had chosen to invest in APC. I think it fair to mention that I do own a significant amount of shares in APC so I guess I must be considered somewhat biased. Nevertheless I am convinced that if APC do increase their financial PR shareholders will be very happy this time next year.
23/2/2019
08:40
glasshalfull: Good morning everyone, Thanks to insider6 for presenting his AGM report. I concur with his overall assessment & posted a brief update on the AGM via a series of tweets yesterday afternoon based on my own observations. HTTPS://twitter.com/glasshalfull1/status/1098998863879380993?s=12 AGM update Overall it was an excellent AGM with formalities completed in 15 mins, leaving 1hr45mins for Richard Hodgson to deliver an excellent presentation followed by a lengthy & robust Q&A session as insider6 mentioned in his post. This was the first time I had spoken with the Chairman Tony Lochery & I was very impressed, especially his considered responses to the multitude of questions that followed Richard’s presentation on their strategy. Inside6 direct link appears broken so here it is again. HTTP://apcplc.com/hideout-app/app-uploads/2019/02/APC-AGM-Slides-Feb-19.pdf I don’t propose to provide chapter & verse but here are a few salient points from my perspective - * Growth strategy - I’ve covered this comprehensively in my previous posts (search “Glasshalfull” in text box on this investment thread for any details). My main takeaway was that their growth strategy is working very well. Richard has established a focused sales model (see p7 of the presentation) which ensures they are maximising opportunities and sales across the entire business. Richard & Tony reiterated that they will continue to look at small fold-in acquisitions that complement the business & the importance of building the APC brand. Essentially while disappointed with the share price performance they will continue to focus on delivering increased profitability, earnings growth & cash which will ultimately drive the share price BUT will also look at other methods to improve engagement & get the story out. (See p12) * Brexit - They are watching closely & have a team engaged on it. They believe that any issues that could potential affect them are getting product into the UK from Europe. They deal predominantly with US & Asian manufactures so not an issue there. In respect of Europe, mention was made that one of their main European suppliers will support them by ensuring their products are delivered to the UK in advance & without cost so there was no disruption to supply. * 3 case studies (pages 8 - 10) Richard provided an overview of 3 studies that showcased the APC proposition in helping a client maintain growth: benefits that accrued from taking on a new supply line & finally where they had assisted a manufacture gain market share. Again, it highlighted a targeted & focused approach in driving sales that supports their growth ambitions. * Space - UK experiencing a high level of growth in this industrial segment & the small bolt-on acquisition of Wavelength now provides them with an additional sales model as they represent a group of manufacturers across APC’s core business & include a number of top industry brands which will support sales into their Hi-Relibilty business that includes Space. That’s all I’ve time for. Overall I continue to be impressed with the turnaround that Richard & Tony undertook & the growth trajectory APC is now on. While the share price may still be in the doldrums I’m sure if one compared the 2016 APC entity with the 2019 one they would observe the multitude of positive changes that have been implemented, with the addition of 3 complementary acquisitions that have increased their supply lines & increased the size of their customer base. Stockdale reiterated forecasts for 2019 which equate to EPS of 0.74p, placing the shares on a prospective PER of only 8.5 despite earnings growth of 35% this year. I have every confidence that they will deliver on their ambitious targets for the business. Hope this write-up assists. Kind regards, GHF
22/2/2019
17:20
insider6: AGM 2019 Report The usual perfunctory AGM was followed by a Q & A session that lasted for 2 hours. The BOD’s answered every question thoroughly and confidently and I came away with a very warm feeling that future analyst forecasts would be met or exceeded. APC is not a company known for its liberal attitude to information but after the Q & A session the BOD openly engaged with all attendees giving the impression that they were very comfortable with the direction F19 was taking and extremely confident that forecasts would be met. Richard Hodgson gave his usual polished presentation concerning APC’s strategy going forward and this is now on the APC website for all to see. hxxp://apcplc.com/hideout-app/app-uploads/2019/02/APC-AGM-Slides-Feb-19.pdf A major part of the open forum was concerned with the share price that has travelled conversely to APC’s profitability over the last 2 years. Since APC have openly forecast revenue to triple over a 5 year period it was a concern to everyone present that further acquisitions would require further fund raising. The Chairman stated that this would not happen unless there was an extraordinary reason and I got the impression that they are as concerned as we are about the depressed share price. So much so that now the findings of the operational review carried out over the last 3 years have been fully implemented attention will be given to improving the level of information given to the market. They will persue increased networking of new institutional investors, increase corporate communication through, RNS, investor magazines, online interviews, investor forums and by looking at paid for research targeted at Private client Investor Managers (PCIM) and Retail investors. They will also work with their stockbroker to develop a specific plan to deal with continuous sellers. This is a major positive deviation from their previous attitude. Exciting times ahead and I sense that there is much to look forward to over the second half of F19.
18/10/2018
07:27
ronwilkes123: 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
25/7/2018
07:01
glasshalfull: Morning everyone, APC Acquisition & Placing Courtesy to update that I took part in the placing & added substantially to my holding. https://www.investegate.co.uk/apc-tech-group-plc--apc-/rns/placing-and-acquisition/201807250700076575V/ I was v impressed with APC’s management throughout the process. They were eager to ensure that existing holders would NOT be diluted via a discounted placing. The positive aspects of the acquisition of Aspen & raise allowed them to conclude it at a price of 6.75p which was a premium of +3.8% to the mid-price of 6.5p of the shares during the last fortnight (it rose 0.25p just prior to close last night, so RNS only considers the raise at premium of +2%). It was apparent to many investors that this acquisition of Aspen will help propel the company into meaningful profitable growth & improve the balance sheet in one fell swoop. We observed that January 2018’s acquisition of First Byte (FB) is looking like an excellent addition. They have already increased turnover by +33% in the first 6 months of acquisition. With the well publicised worldwide component shortage I can only see APC Locator (with FB now fully integrated) growing substantially in the years to come. In Aspen I’ve every confidence that they have chosen wisely for this second & much larger acquisition & hopeful they will execute in similar fashion to that of FB. Benefits... This really is a fantastic deal for APC as it delivers: - * an earnings enhancing acquisition in FY18/19 with acquisition price on multiple equivalent to 3 x EBITDA * offers scale & cross selling opportunities via increased suppliers & customer base of which there is little overlap * brings in-house services that APC currently undertake via a 3rd-party * material cost savings through synergy benefits * material interest savings through removal of loan-notes which bear interest of 10% * provides additional working capital * brings new institutional holders on board to support future growth ambitions Why Aspen? Well it appears an excellent addition on a number of metrics as I’ve alluded to. Not only will it help to scale APCs existing Components business - which is currently c.60% of group sales - but APC were at pains to confirm they have an excellent reputation in the industry & the APC team know the business well, having courted the possibility of acquiring them for sometime. Importantly it offers a complementary RF & Microwave business to APC’s with a test & measurement equipment business & provision of in-house testing facilities. In other words the acquisition will allow APC to provide value added services to customers & suppliers of the combined business. This should be viewed as an important addition to APC, as they currently utilise 3rd-party testing & can immediately bring this in house. Therefore significant synergistic benefits which the FD anticipated will result in overall savings equating to a six-figure sum. Financials In terms of financials the deal is also compelling. Aspen delivered turnover of £4.3m in FY16/17 (30.06.2017), gross profit of £1.35m & adjusted EBITDA of £0.35m. They’ve just completed FY17/18 (30.06.2018) with EBITDA forecasted to have risen by +70% to c.£0.55m. The £3.2m purchase price appears an excellent price. Aspen has net assets of £2m including £1m of cash (which the seller will retain on completion of the transaction). Therefore the net purchase price is £2.2m. Excluding cash, and after synergies, the purchase price is expected to equate to 3 x EBITDA & will be earnings enhancing in FY18/19. APC are raising £2.5m to acquire Aspen & also placing £500k of shares with the seller, for total issue of £3m shares. It will only cost APC net acquisition costs of £2.2m, the deal has been structured as part cash + shares as the seller was looking to take equity in APC, with £1.7m cash + £500k shares (with a 1 year lock-in) going to the seller, which leaves £0.7m that will be used to repay the convertible loan notes which have a 10% coupon & remainder for w.c. purposes. So at a stroke APC will save considerable interest costs on the loan notes. The FD also confirmed that b/s improvements will help APC realise interest savings amounting to a six-figure sum...therefore we should witness the double benefit of cost/synergistic savings & interest savings Organic Growth opportunities While the acquisition & placing transform the business IMHO, it’s also worthwhile highlighting that the other c.40% of APC comprises Property Technology (c.30% of sales) & Time Synchronisation (c.10% of sales) which offer substantial organic growth. I’ve written about the growth opportunities of both previously & therefore won’t regurgitate. (see link if interested) http://uk.advfn.com/cmn/fbb/thread.php3?id=34997151&from=741#firstpost I’m excited about the Property Tech side - which comprising APC Lighting, APC Smartwave (IOT) & EEVS - & which is growing substantially through a number of agreements they’ve established with a few Facility Management (FM) companies to offer a complete suite of services. The APC team have confirmed the growing opportunities in this area. Equally their Time Sync business is also growing significantly as a number of businesses are adopting time sync functionality due to compliance or tech requirements. This offers APC increasing opportunities across a number of businesses in the financial, broadcasting, power, telecoms & infrastructure markets. I was quite astonished to learn the types of opportunities & the number of industries & companies requiring time sync was quite staggering. I can see this side of the business delivering strong organic growth for the foreseeable. APC believe that both Property Tech & Time Sync businesses provide v good organic growth opportunities, well into double digit % over the months & years ahead. Further bolt-on acquisitions The management team alluded to the fact that the UK electronic components market is currently worth c.£1.5bn per annum. This is a highly fragmented market with hundreds of distributors, many of which are owned by people that are looking to exit & retire. This creates the opportunity for APC to offer an exit route to such owners & at the same time augment the organic growth of Property Tech & Time Sync, as a consolidation play in the Components market. It’s therefore important that APC demonstrate the benefits of the Aspen acquisition, similar to that of January’s FB, as this will no doubt encourage further investor support for future acquisitions & I believe could lead to a material re-rating of the company in due course. Conclusion APC have now moved from the aftermath of a significant 18 month restructure , returning to profit & the small bolt-on acquisition of First Byte in January, before releasing H1 2018 results that highlighted op profit +45% and spoke of further improvement. This is the next step on the journey. Pleasingly initiating a small raise at a small premium to the mid-price of the shares which will not only scale the business but also improve the b/s at the same time. A few posts back I mentioned Stockdale’s forecasts as: 31.08.2018 Turnover £17.51m PBT £0.68m EPS 0.42p (+57%) 31.08.2019 Turnover £19.78m PBT £0.94m EPS 0.57p (+36%) and envisage material upgrades for FY18/19 in light of this acquisition & accrued benefits. It has been a pleasure watching them execute their well publicised strategy and I look forward to the journey ahead. Disclosure - I own over 2% of the equity...so clearly talking my own book! Kind regards, GHF
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