(APC) Advanced Power Cmpnts

Advanced Power Components plc

Result of AGM

Advanced Power Components (AIM: APC), the UK specialist distributor and manufacturers' representative of electronic components, is pleased to confirm that at its Annual General Meeting held today at 1200hrs, all resolutions put to shareholders were duly passed.

Enquiries:

Notes to Editors:

About Advanced Power Components

APC plc is a leading specialist distributor of electronic components, comprising eight areas of activity:

§ APC Hi-Reldistributes a variety of specialist electronic components into applications where component reliability is of paramount importance. Hi-Rel's franchised product lines include power semiconductors, power supplies, memory, wound and high voltage components.

§ APC Locatoris the number one solutions provider for obsolete and hard-to-find parts, with 25 years' experience in the industrial and defence/aerospace markets across Europe.

§ APC Hero has a specialist technical sales team focussing on sensors and measurement, power management, communications & connectivity and embedded computing applications.

§ APC Go!provides a kitting and materials management service to companies wanting to outsource non core activities, offering services ranging from material procurement to full production management.

§ APC Displays+provides dedicated technical and commercial support for a wide range of displays, driver boards, ICs, single board computers and all related connectivity.

§ APC Novacomis a distributor and manufacturers' representative for RF and microwave frequency electronic components. The business is managed by a team of technical specialists with many years experience in the RF and Microwave industry.

§ APC Contechis a distributor of specialist data input devices for industrial, broadcasting and medical sectors providing technically advanced solutions for specific application areas.

§ APC imop™ is a manufacturer and distributor of power saving equipment which optimises the performance of electrical motors, leading to reduced energy consumption and cost savings.

§ QV Controls Limited is a designer, manufacturer and supplier of DALI-IP technology based lighting and energy management systems that improve energy efficiency and lighting performance within commercial, industrial and high end residential buildings.

Advanced Power Components plc

Final results for the year ended 31 August 2011

Advanced Power Components (AIM: APC) ("APC" or the "Company" or the "Group"), the UK specialist distributor and manufacturers' representative of electronic components, is pleased to announce its final results for the year ended 31 August 2011.

Highlights

Increased profitability, sales revenue and order book with continued reduction of net debt.

·      Revenue increased by 7.5% from £13.4 million to £14.4 million

·      Order book increased from £3.8 million to £4.5 million

·      Profit before tax increased by 62.8% from £247,000 to £402,000

·      Cash inflow from operating activities of £0.9 million in FY2011, building on the £1.0 million inflow in FY2010

·      Net debt reduced from £1.7 million to £1.2 million

·      Acquisition of lighting controls business and launch of QV Controls Limited

Will David, Chairman of APC, commented:

"During the year the Group has continued to make progress in both our core distribution business and in the development of green technology products which currently offer the most exciting opportunities for our business. However, the deteriorating economic conditions clearly present a challenging backdrop to the Group's activities and despite entering the year with a very healthy order backlog, any prolonged downturn may affect our ability to sustain the momentum of the last few years."

Enquiries:

Notes to Editors:

About Advanced Power Components

APC plc is a leading specialist distributor of electronic components, comprising eight areas of activity:

·      APC Hi-Rel distributes a variety of specialist electronic components into applications where component reliability is of paramount importance. Hi-Rel's franchised product lines include power semiconductors, power supplies, memory, wound and high voltage components.

·      APC Locator is the number one solutions provider for obsolete and hard-to-find parts, with 25 years' experience in the industrial and defence/aerospace markets across Europe.

·      APC Hero has a specialist technical sales team focussing on sensors and measurement, power management, communications & connectivity and embedded computing applications.

·      APC Go! provides a kitting and materials management service to companies wanting to outsource non core activities, offering services ranging from material procurement to full production management.

·      APC Displays+ provides dedicated technical and commercial support for a wide range of displays, driver boards, ICs, single board computers and all related connectivity.

·      APC Novacom is a distributor and manufacturers' representative for RF and microwave frequency electronic components. The business is managed by a team of technical specialists with many years experience in the RF and Microwave industry.

·      APC Contech is a distributor of specialist data input devices for industrial, broadcasting and medical sectors providing technically advanced solutions for specific application areas.

·      APC imop™ is a manufacturer and distributor of power saving equipment which optimises the performance of electrical motors, leading to reduced energy consumption and cost savings.

·      QV Controls Limited is a designer, manufacturer and supplier of DALI-IP technology based lighting and energy management systems that improve energy efficiency and lighting performance within commercial, industrial and high end residential buildings.

Chairman's Statement

The year ended 31 August 2011 saw positive progress in sales, profitability and the continued strengthening in the Group's financial position. This has enabled us to continue to invest in developing a position in the clean-tech sector with further development of the imop™ product range and the acquisition of the assets of Quo Vadis Limited and launch of QV Controls Limited. We maintain a strong belief that this sector offers the most exciting opportunities for our business and foresee further investment in future years.

The growth in sales and profitability has resulted directly from the steps we have taken in the recent past to focus on winning design slots for products that we distribute exclusively or where our work is recognised and protected by our suppliers. This has been achieved by increased investment in the development of the Group's technical teams. As a sign of our long term commitment to this approach, the Group has hired a number of graduate students in the year who have enhanced the considerable strengths of the existing teams.

Revenues in the year were £14,419,000 compared with £13,410,000 in the prior year. Net profit before tax for the year was £402,000 compared with £247,000 in 2010. Gross profit margins increased to £4,327,000 (30.0%) compared with £3,833,000 (28.6%). Cash inflow from operating activities was £887,000 during the year compared with an inflow in 2010 of £957,000, which reflects our continued careful management of our working capital.

The efforts made to improve the Group's focus and efficiency continue to yield results and an improving order book gives us continued confidence in our ability to outperform the general economy. Encouragingly, the Group order book stood at £4,493,000 on 31 August 2011 compared with £3,773,000 on 31 August 2010 and has been maintained since the year end. However, the deteriorating economic conditions clearly present a challenging backdrop to the Group's activities and despite entering the year with a very healthy order backlog, the longer the current uncertainty in the market continues, the greater will be the effect on short term revenues and profitability.

The Board is increasingly confident that the decisions made to involve the Company in the green technology sector will have a positive effect on both revenues and profitability. Recent trials of the imop™ have shown very encouraging results and we are looking forward to increased deployment during 2012.

The Group is grateful for the enduring hard work of its employees who have delivered the return to profitability and for the support of its advisors, shareholders and Bank of Scotland plc.

Will David, MA, FCA

Chairman

29 November 2011

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 August 2011

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 August 2011

Consolidated Statement of Changes in Equity

For the year ended 31 August 2011

STATEMENT OF CASH FLOWS

For the year ended 31 August 2011

Notes to the Consolidated Financial Statements

For the year ended 31 August 2011

1.   Basis of preparation

Statement of compliance

The Group's Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board as adopted by the European Union ("Adopted IFRS") and with those parts of the Companies Act 2006 applicable to companies preparing their financial statements under IFRS.

While the financial information included in this announcement has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The Group expects to publish full financial statements that comply with IFRS in December 2011.

2.   Revenue and segmental information

The majority of the Group's activity arises in the United Kingdom from the Group's principal activity. The directors manage and monitor all operations of the business on a unified basis and consider that all of the Group's operations are in similar markets and face similar risks.  Consequently, the directors consider the Group has one business and one business segment.

An analysis of revenue by geographical destination is given below:

3.   Finance cost

4.   Taxation

There are at present no other factors which will influence the Group's taxation in future years.

5.   Earnings per share

The calculation of basic earnings per share is based on the profit after taxation for the period and the weighted average number of shares in issue during the period.

Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding by the dilutive effect of ordinary shares that the Company may potentially issue relating to its convertible loan notes and its share option scheme. The profit / (loss) for the year is adjusted to add back the tax interest cost on the liability component of the convertible loan notes. Where the effect of the above adjustments is anti-dilutive they are excluded from the calculation of diluted earnings per share.

The profit for the year and the weighted average number of shares used in the calculation are set out below: