APC Technology, the electronic components distributor, suffered a £1 million fall in revenues as “market conditions remain difficult” but is optimistic about its new ventures in the energy efficiency market.

The Strood-based firm, which has acquired and launched a series of bill-cutting companies in recent years, reported declining sales of £20.6 million, down from £21.7 million, in its preliminary end of year results.

However, its operating profit before exceptional costs and share payments grew to £573,000, up from £491,000, thanks to a number of cost cutting initiatives and an improvement in margins.

The actual operating profit was down to £427,000 from £4.6m, with pre-tax profits down to £382,000 from £4.5m the year before, although 2013 was boosted by exceptional items worth nearly £4.2m.

Sales of its core electronic component distribution business Advanced Power Components fell to £12.5m for the year to the end of August 31, down from £12.7m a year earlier.

Revenues were also down in its energy saving and efficiency products and services – which broadly come under its Minimise Energy brand – to £8.2m from just under £9m.

The company said it would continue to focus on this “cleantech” sector, having created Minimise Solutions, Minimise Finance and Minimise Generation.

Since September it has acquired water hygiene control business Green Compliance and established Minimise Water, taking the company into water management.

Chief executive Mark Robinson said: “During the year under review and in the subsequent months our strategy for diversification into the cleantech sector has been widened to include more aspects of sustainability relating to the built environment.

“Very tangible progress has been made to significantly increase the customer base, the range of technologies, products and services offered and the breadth of geographical territories covered.

“The company is now addressing a huge and rapidly growing market with a business model that we believe has the potential to create significant shareholder value in the future.”