APC expects £0.5m full year loss

21st Jul 2009 08:16

Shares in Advanced Power Components (APC) dropped after the electronic components group said it expects to report a pre-tax loss in the region of £500,000 in the full year ended 31 August. The group said the recent reorganisation of its business has resulted in a one-off charge being incurred that will adversely impact pre-tax profits for the full year by about £140,000, but which, once fully implemented, is expected to generate cost savings rising to approximately £40,000 per month from 1 September.In addition, in conjunction with the Company's auditors, Reeves and Neylan, APC has completed its detailed review of the group's processes and management reporting systems and has brought forward its review of year end provisioning, specifically including prudent bad debt and slow moving stock provisions. As a result of these reviews, the company expects to incur a further charge to the profit & loss account of £250,000 in its year end results."The board believes that the steps taken to reduce the cost base will place the group in a much improved position to manage the challenges and opportunities facing it and provide a platform for an immediate return to monthly profitability, which the board expects will continue into the next financial year," APC said.