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Electronic components distributor APC Technology continued its recovery after reducing its operating losses to £173,000 in the first half of its financial year.
The company had suffered losses of £1.4 million in the previous six months and lost nearly £6 million in the 12 months to the end of August after its subsidiary Minimise Group over-stretched itself with contracts to supply energy-efficient LED lighting to Morrisons .
The firm, based in Medway City Estate, Strood, has reduced annual operating costs by more than £1 million after cutting 10% of its workforce.
Its Minimise Group, which carries out energy saving projects for businesses, returned to profitability but overall revenues were down 11.7% to £12.8 million in the six months to the end of February, compared to the same period a year earlier.
Its components business – which supplies the defence, aerospace, space, industrial, medical and healthcare sectors – remained strong, with bookings at their highest point in five years at £7.2 million.
However, it still made a pre-tax loss of nearly £1.5 million for the period when exceptional items were taken into account.
Chief executive Richard Hodgson said: “In the first half of this year we have seen a significant turnaround since 2015.
“We inherited a soft order book in the component division coming into the year, which was caused by the instability in the group at that time.
“A strengthened and re-invigorated management team has aggressively assessed every area of the business, implemented new levels of monitoring and control, key performance measures, enhanced procurement practices, and aligned headcount to the areas of greatest opportunity and profitability.”