News blog
Advanced Power Components
- BY: Andrew Hore |
- POSTED: 27/01/2009 |
- COMMENTS: Add yours
Advanced Power Components reported improved profits for the year to August 2008 but warned that the sharp weakening of the pound against the dollar will hit its interim figures.
The electronic components distributor’s revenues rose by one-quarter to £12.2m, while the profit increase from £605,000 to £732,000 was better than expected. The business was highly cash generative last year which helped finance two acquisitions. Net cash was £392,000 at the end of August 2008.
Demand grew even though the overall electronic components market fell. APC is not dependent on the consumer market and that it has done better than many of its peers.
The underlying operations are trading strongly but the weakness of sterling against the dollar will offset this. The exchange loss is occurring because invoice have been drawn up when the exchange rate was higher and paid two months later when it has weakened. It was the rapid movement of the exchange rate that caught APC out. Three-quarters of purchases are in dollars and two-thirds of sales are in pounds. The first half exchange loss is expected to be £330,000.
APC has not hedged its exposure in the past. It does not want to start hedging at the moment because it believes that sterling is oversold. However, hedging is a possibility in the medium-term.
The worries about the exchange losses knock 1.5p off the share price to 11p a share, which values APC at £2.46m.
New house broker St Helen’s Capital has cut its 2008-09 profit forecast from £800,000 to £494,000. The broker expects a small first half loss. The tax losses are running out so the tax charge is expected to rise from 4% to 22%.
The shares are trading on seven times 2008-09 forecast earnings, falling to four the following year.
© 2007 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
- 2.4mNumber of messages posted on SocialGo networks
- $38mCost savings generated by ideas from WalMart staff over a two month period
- 19.4m
Number of people passing through Johannesburg Airport in 2007
- News Blog
- All micro news
Geong International Ltd
Geong International Ltd says that it considered a Hong Kong listing but it has no intention of moving ahead with this.
1PM
Asset finance provider 1PM has secured £700,000 of additional funding from two separate loans.
African Land
African Land is the latest agricultural business planning to join Aim.
Fiske
Broker Fiske says its second quarter trading was disappointing and it expects markets to continue to be lacklustre.
- Browse by issue
- All issues
- Popular tags
- All tags
- AIM Micro feeds
Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds
|