APC falls into losses

17th Dec 2009 08:51

Advanced Power Components (APC) posted losses in line with expectations in the year to 31 August as the distributor of electronic components for niche markets felt the impact of tough economic conditions and faced reorganisation costs.While revenues were up by 16% to £14.1m from £12.2m the previous year, this was due to the impact of acquisitions and the company posted a pre-tax loss of £591,000 compared with a £700,000 profit the previous year.The acquisition of Novacom Microwaves and Contech Electronics in 2008 had been expected to lift sales, but the rise was less than anticipated due to a 13% contraction in the overall electronic components market, the company said.APC was also hit by currency losses of £330,000 in the first half and a restructuring charge of £140,000 taken in the second half as the company implemented measures to realign overheads with lower trading levels. These measures are expected help the company return to profitability in the current year.These measures should result in yearly savings of £480,000, allowing the company to bounce back to profitability. Chief executive Mark Robinson told ShareCast that, while the company had taken measures to address its cost base, it was still investing in long-term growth.'Earlier this year we were operating on a hand-to-mouth basis, trying to scrape up as much business as we could, but we're getting back to investing for the medium-to-long term,' he said.Current investment for the future includes the development of energy saving equipment, which helps reduce the power drawn by electric motors, for commercial customers.