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APC Tech Group PLC (APC)

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Thursday 11 January, 2018

APC Tech Group PLC

Acquisition of First Byte Micro

RNS Number : 5532B
APC Technology Group PLC
11 January 2018
 

11 January 2018

 

 

APC Technology Group PLC

 ("APC" or the "Company")

 

Acquisition of First Byte Micro Ltd

 

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 report that it has completed the acquisition of First Byte Micro Ltd ("FBM") a franchised and independent distributor of electronic components. 

 

FBM sources and supplies a wide range of electronic components from major blue chip manufacturers such as Altera, Seiko Instruments, Texas Instruments, and Cypress, and from others either directly under franchise or from authorised open market and worldwide sources. Approximately 80% of FBM clients provide repeat business. As such, the Company has long-lasting client relationships including several up to 20 years in duration. 

 

Pete Greenslade, co-owner and Sales Manager for FBM, will stay with the business and integrate the APC Locator product line into it. Pete has over 25 years experience in the sourcing and sales of electronic components having worked at Avnet and Maplin before founding FBM. The combination of FBM with APC Locator will give APC a significant capability in the sourcing of hard to find or obsolete and end of life components, products and systems. Pete will report into Richard Hodgson and, with the rest of the FBM team, will be charged with growing this product line.

 

For the 12-month period ended 31 December 2016, FBM recorded revenues of £1,300,678, a profit before taxation of £193,541 and had net assets of £686,610. In 2017, FBM is expected to have seen revenue and profit growth.

 

The consideration payable will be c£1.2 million of which £0.7m represents cash at completion in FBM. For the remaining £0.5m, £0.27m will be paid on completion from existing APC cash and debt facilities, with the residual £0.23m being paid in twelve months time. The FBM balance sheet at completion includes c£0.2m of trade debtors which will be rolled into the APC invoice finance facility with ABN giving the Group additional cash availability.

 

Richard Hodgson, CEO of APC Technology Group, commented:

 

"I am very pleased to welcome Pete and the rest of the First Byte Micro team to APC. The combination of their business with our APC Locator division gives us a significant presence in the growing market for the sourcing of hard to find and obsolete electronic components and products. This business line allows us to offer a value added solution to our extensive military and aerospace customer base in particular.

 

As we set out in our results presentation, now that we have established a profitable base, we are concentrating on three main growth drivers: growth through increased bookings from our existing technologies, in particular those that sit is high growth markets; growth through the signing of new complementary product lines; and growth through targeted bolt-on acquisitions. We are already seeing traction in the first two and this acquisition marks the start of the third.

 

The acquired business will add to the exisiting business which has started fiscal year 2018 well and trades in line with expectations. "

 

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


This information is provided by RNS
The company news service from the London Stock Exchange
 
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