News Column

Green Compliance To Be Acquired By APC Technology; Swings To Profit

July 30, 2014

Anthony Tshibangu

LONDON (Alliance News) - Green Compliance PLC Wednesday said it swung to profit in its last financial year, as it outlined details of a proposed takeover from APC Technology Group PLC.

The water treatment and hygiene company said under the terms of the offer, all Green Compliance shareholders will be entitled to recieve two new APC shares for each 71 scheme shares. The offer values Green Compliance at GBP4.8 million based on Tuesday's closing price of 35.50 pence per APC share.

The offer also represents a 25.9% discount to the closing price of 1.35 pence per Green Compliance share on Tuesday. Green Compliance shares were quoted down 32.9% at 0.906 pence Wednesday afternoon, making it the biggest faller on AIM, while APC shares were quoted up 4.7% at 37.15 pence.

In a joint statement, the companies said the enlarged group will be led by the current APC board and it is currently anticipated that certain Green Compliance directors will join the board of the enlarged group once the deal goes through.

Green compliance directors urged shareholders to support the move and said they have irrevocably undertaken to tender a 7.47% interest in the company.

"We have already moved the business from being a market leading water hygiene and treatment business to a total water management business but as Directors we recognise that the further development of products and services for these markets may be restricted by the recent trading history of the group and the restricted access it has to cost effective sources of capital to fund more aggressive growth, " Green Compliance Chief Executive Bob Holt said in a statement

"To that end we are excited by the potential acquisition of Green Compliance by APC which we believe will provide the Green Compliance Group's water business, its staff and its customers, with an enlarged platform on which it can grow," he added.

AIM-listed APC said its acquisition of Green Compliance will represent a step forward in its efforts to expand into the wider sustainability sector.

Green Compliance posted pretax profit of GBP864,000 for the year ended March 31, compared with a GBP3.3 million loss a year earlier. Revenue, however, dipped to GBP8.1 million from GBP9.9 million a year earlier.

The company has been beset by a number of issues recently. It has attempted to reorganise its business after selling its loss-making fire division for GBP5.2 million, and settling an outstanding debt payment of GBP7.4 million with HSBC Holdings PLC.

Green Compliance said having completed its refinancing during the year, coupled with the divestment of the pest control and fire services divisions, it has exited the year completed focussed on its water hygiene and treatment business.

It said the water business was successful in retaining existing contracts with some new clients during the period.

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Source: Alliance News

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