APC Technology surges as profits jump

APC Technology's shares leapt on Tuesday after the company recorded a jump in interim revenue and profit, while net debt was reduced.

The specialist electronics supplier scored a profit before tax of £0.5m for the year ended 28 February, an increase of 33% compared to the year before, while revenue jumped by 24% to £10.7m.

Adjusted profits, which eliminated the effects of £0.2m stemming from the AIM traded company's acquisitive strategy, came in at £0.7m, up by 71% compared to the year before.

Meanwhile, net debt fell by £1.3m to £2.7m with all high interest-bearing loan notes now repaid, while period-end cash balances increased by £0.5m to £0.8m.

Richard Hodgson, chief executive of APC, 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."

Trading for the period was in line with management expectations and in a statement the company said that it remains confident in its three faceted growth strategy.

Analysts at Shore Capital said the results vindicated APC's strategy of focusing on technical sales of specialist electronic components, products and systems, adding that they now forecast full-year revenues of £22.6m and normalised profit before tax of £1.6m.

APC Technology's shares were up 14.78% at 9.90p at 1306 BST.