APC Technology Group PLC Acquisition of First Byte Micro (5532B)
11 January 2018 - 6:00PM
UK Regulatory
TIDMAPC
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 GBP1,300,678, a profit before taxation of GBP193,541
and had net assets of GBP686,610. In 2017, FBM is expected to have
seen revenue and profit growth.
The consideration payable will be cGBP1.2 million of which
GBP0.7m represents cash at completion in FBM. For the remaining
GBP0.5m, GBP0.27m will be paid on completion from existing APC cash
and debt facilities, with the residual GBP0.23m being paid in
twelve months time. The FBM balance sheet at completion includes
cGBP0.2m 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
END
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