APC Technology Group PLC (AIM: APC), the provider of design-in, specification and distribution services for specialist electronic components and systems, lighting technologies and connectivity products, is pleased to announce its unaudited interim results for the half year ended 28 February 2019.
Adjusted results (continuing operations before exceptional costs and share based payments) | Half year ended 28 February 2019 | Half year ended 28 February 2018 | |
£000 | £000 | % increase | |
Revenue | 10,662 | 8,616 | 23.7% |
EBITDA (Earnings before interest, tax, depreciation and amortisation) | 851 | 581 | 46.5% |
Adjusted operating profit | 844 | 557 | 51.5% |
Adjusted profit before tax | 657 | 384 | 71.1% |
Earnings per share (pence) | 0.4p | 0.3p | 31.0% |
Statutory results | Half year ended 28 February 2019 | Half year ended 28 February 2018 | |
£000 | £000 | % increase | |
Revenue | 10,662 | 8,616 | 23.7% |
Operating profit | 657 | 526 | 24.9% |
Profit before tax | 470 | 353 | 33.1% |
Basic earnings per share (pence) | 0.3p | 0.3p | |
A reconciliation between the statutory and adjusted results shown above is contained in note 5 to the interim financial statements.
Financial and operational highlights
- Revenue increased to £10.6m (H1 2018: £8.6m), up 24% from the £8.5m posted in H2 2018.
- Adjusted profit before tax increased by 71% to £0.66m (H1 2018: £0.38m) with adjusted earnings per share increasing by 31% compared with H1 2018.
- Operating profit from continuing operations before exceptional costs and share based payments increased 51% to £0.84m (H1 2018: £0.56m).
- Operating profit margin increased by 21.5% from 6.5% in H1 2018 to 7.9% in the current period
- Pre-tax profit for the period increased to £0.47m (H1 2018: £0.35m), compared with £0.6m for the whole year ended 31 August 2018.
- Period-end cash balances increased by £0.5m to £0.8m (H1 2018: £0.3m).
- Net debt decreased further by £1.3m to £2.7m (H1 2018: £4.0m) with all high interest-bearing loan notes now repaid.
- Further reduction in trade and other creditors since last financial year, as the Group continues to invest in strengthening supplier relationships.
- Group now concentrating on proven business model of the technical sales of specialist electronic components, products and systems.
- Acquisition of Wavelength Electronics Limited in November 2018, which adds further complementary lines to the Group offering.
- Robust pipeline of further bolt-on acquisition opportunities identified to aid this strategy.
- Group processes being streamlined to realise synergies and establish robust back-office platform to absorb further acquisitions.
Commenting on the results, Richard Hodgson, Chief Executive, said:
“These results show a further increase in the Group’s profitability and demonstrate the continuing success of the strategy of concentrating on the technical sales of specialist electronic components, products and systems. We are achieving this growth through our stated strategy of increased revenue from our existing technologies, signing new product lines and carefully targeted bolt-on acquisitions.
We have also strengthened our balance sheet, with positive cash flow during the period and a decrease in debt, whilst achieving a reduced fixed cost base and a centralised support structure that is capable of absorbing further acquisitions.
Once again I would like to thank our staff for the wholehearted way in which they have embraced this strategy and for the positive additional contribution that staff of our acquired companies have brought to the Group’s team spirit and energy.”
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