APC, APC Technology confident Cantor's target price is more than double that, at 20p.

Sustainability technology specialist APC Technology (LON:APC) is confident on future prospects as it unveiled a boardroom reshuffle.

Finance chief Richard Hodgson has been appointed as chief executive with immediate effect, while Mark Robinson has resigned, it said.

Hodgson will work closely with chairman Leonard Seelig on a current operational review currently being undertaken and implement its findings, due to be published in the late autumn this year.

In a pre-close trading update last week, the group said its three main operating divisions – Component Distribution, Water Hygiene and Minimise Energy – would meet market revenue expectations for the year to the end of August, and the first two divisions listed will meet profit expectations.

However, the Minimise Energy division, it said, had seen margins hit by excessive freight charges and other incremental costs incurred to hit delivery times on a number of recent contracts, while the board expects the Minimise Generation and Minimise American units to miss the board’s expectations for the full-year.

Before joining APC, Hodgson was chief operating officer during the turnaround of Green Compliance (Green) and at the time of the acquisition of Green by APC in September last year.

Seelig said: "I would like to thank Mark for all of his hard work and commitment over the years and I wish him all the best in his new endeavours. I am confident that Richard, our new CEO, along with the other members of the management team, will deliver the operational and financial improvements required to re position the group for profit and cash generation in the new fiscal year."

Broker Cantor repeated a 'buy' recommendation and noted that all three of the groups' business divisions had management in place.

"While there is always a risk of disruption with such management change we think this is mitigated by the structure allowing Richard as incoming CEO to focus on the issues which led to last week’s profits warning," said analyst Adam Forsyth.
"Mark Robinson remains a major shareholder in the company and we think will remain supportive of the business he has built," he added.
Shares eased around 9% to 8.75p. Cantor's target price is more than double that, at 20p.