An electronic components and lighting distributor has returned to profitability after a restructure which involved cutting staff numbers, changing management and raising £500,000 in new shares.

APC Technology has reported pre-tax profits of £166,000 in the 12 months to the end of August compared to a loss of £3.1 million the previous year.

It had made losses of £12.9 million after tax in 2016 when taking into account discontinued operations.

However, the company is preparing for “sustained growth” after cutting staff from 91 to 65, closing a number of offices and shifting all its Kent operations to its headquarters at Rochester Airport Estate.

Over the year, it secured £1.8 million of contracts for power supplies for the defence sector and a £700,000 repeat order for a civil aviation programme.

Other highlights include £500,000 of revenue under a preferred supplier agreement for a major facilities management group, expected to be worth £2.5 million overall.

Although annual turnover was down 13% to £15.6 million, its underlying operating profit nearly trebled to £756,000.

“The financial year ended 31st August 2017 has seen the successful conclusion of a period of restructuring, a return to profitability and the formation of a management team well equipped to lead the company into a period of sustained growth..." - Tony Lochery, APC Technology

APC Technology has been through a two-year recovery period after its subsidiary Minimise Group, due to be rebranded APC Lighting, over-stretched itself with contracts to supply energy-efficient LED lighting to Morrisons.

A profit warning in August 2015 led to the departure of chief executive Mark Robinson, who was replaced by chief financial officer Richard Hodgson, who remains in the post.

Earlier this year, the company hired Tony Lochery, a former group managing director of Kwik Fit, as its chairman.

He said: “The financial year ended 31st August 2017 has seen the successful conclusion of a period of restructuring, a return to profitability and the formation of a management team well equipped to lead the company into a period of sustained growth.

“In parallel with the restructuring, we have strengthened relationships with top suppliers, who shared significant growth during the period.

“It is our intention, through sales growth, profit growth, and cash generation to make APC a reliable and rewarding investment and trading partner for many years to come.”