Final Results Replacement
April 01 2004 - 3:18AM
UK Regulatory
RNS Number:2072X
AeroBox plc
01 April 2004
1 April 2004
AEROBOX PLC
("Aerobox" or the "Company")
FINAL RESULTS FOR 15 MONTH PERIOD ENDED 31 DECEMBER 2003
Thisreplaces RNS Number 1953X released at 7.00 a.m. and amends the headline
only.
Highlights
* Successful admission to AIM and acquisition of Aerospace Composite
Structures
* First product developed, FAA and CAA certified andplaced on trial with 25
airline carriers; first orders received in early 2004
* Two new air cargo containers now under development
* Strategic partnership formed with Kelvin Technologies to develop a
temperature controlled container; prototype now nearing completion
* New manufacturing facility to open next month in New Mexico
* Loss before taxation in the 15 months to 31 December 2003 of #2.6m on nil
turnover
Commenting on prospects, David Sebire, Chairman, said:
"The Board of Aerobox is confident that the hard work during 2003 on the
introduction of the original product into trials with many world airlines will
be rewarded by substantial sales once the lighter air cargo container is
manufactured by Aerospace Composite Structures from panels produced to the
Company's specification at the new manufacturing plant in the second half of
2004."
Enquiries:
David Sebire , Chairman AeroBox plc Today: +44 20 7929 5599
Richard Scott, Finance Director AeroBox plc
Jeremy Porter/Jonathan Wright Seymour Pierce +44 20 7107 8000
David Bick/Trevor Phillips Holborn +44 207 929 5599
CHAIRMAN'S STATEMENT
Introduction
The results cover the 15 month period from the Incorporation of the Company on 2
October 2002 to 31 December 2003. The Company was originally incorporated as
Greatstride Limited on 2 October 2002. On 21 November 2002 the Company was
re-registered as a public limited company.
The Company acquired Aerospace Composite Structures LLC ("ACS") on 20 March 2003
for an initial consideration of #8.4 million. The Company changed its name to
Aerobox plc and was admitted to trading on AIM.
ACS was founded in Albuquerque in New Mexico in 1998 to pursue the development
of composite materials for use in manufacturing specialised products for the
freight and air cargo industries. The first product "AKE1" is a type LD3
container that is used on the lower decks of most wide body aircraft. LD3s are
the most popular type of unit load device ("ULD") and account for approximately
50% of the ULD market. The AKE1 was certified by the US Federal Aviation
Administration ("FAA") in March 2002 and the UK Civil Aviation Authority ("CAA")
in September 2003 on behalf of the European Joint Aviation Authority ("JAA").
In January 2004 Aerobox announced the first orders for its new product and that
it had entered into a strategic partnership with Kelvin Technologies Inc to
determine the feasibility of producing a refrigerated air cargo container that
actively controls product temperature for use by the pharmaceutical, food and
related industries.
Results
Operating loss before goodwill amortisation during the fifteen months to 31st
December 2003 amounted to #1,673,000. Of this amount the operating loss from
acquisitions amounted to #1,203,000. This includes #200,000 of development costs
in USA and #350,000 of marketing spend by Watermark Group plc ("Watermark")
under the joint venture agreement as Watermark launched the AKE1 at
international trade shows and set up the initial trial programmes. Goodwill
amortisation amounted to #690,000.
Net interest payable totalled #257,000.
Loss on ordinary activities before taxation for the fifteen months to 31st
December 2003 amounted to #2,620,000. This represented a loss per share of
4.8p.
Finance
Since the year end a further 9 million shares have been issued to raise #
2.6million net of costs to fund the working capital required for the marketing
campaign, the development of the new AKE2 and AKE3 containers and the initial
stages of thejoint venture with Kelvin Technologies Inc to develop a ULD
incorporating controlled temperature and tracking/monitoring capabilities.
Increasing sales volumes will increase funding requirements. However orders will
confirm the business model and should therefore increase the availability of
sales based debt and lease finance to the Group.
Review of Operations
The Aerobox container test programme is proceeding with very positive results.
The 100 prototype AKE1 containers produced in the second half of 2003 are being
tested by some 25 air carriers located in Europe, Asia, and North and South
America. The initial rollout went more slowly than anticipated due primarily to
logistical and regulatory issues, which appear tobe behind us. So far, reports
of damage to containers during normal ramp operations have been minimal. The
response from trial airlines has been very positive with an excellent level of
helpful and practical operational feedback that will help improve the production
model. The airline industry is heavily regulated and safety conscious.
Accordingly trial testing is extensive and requires commitment from
participating airlines. The trial length for each airline cannot be fixed by
Aerobox.
The weight of the AKE1 boxes used in the trials was higher than planned as our
panel supplier increased panel weight on a crucial supply shipment. ACS signed a
licence in January 2004 to produce the panels itself and further weight
reductions will occur as production is moved fully in house during the second
half of 2004.
After successful trials, we have made the first deliveries of AKE1 containers to
Aer Lingus. Detailed discussions with Virgin Atlantic regarding their particular
operational requirements are continuing. The Company anticipates further orders
but timing can never be certain. Further announcements will be made as
appropriate.
On completion of the initial test programme, ACS will terminate its production
of its prototype LD3 container, designated AKE1. ACS will now be offering
customers a choice of two LD3 containers, designated as AKE2 and AKE3. The new
AKE2 will be lighter, have fewer parts, and will reflect the feedback received
from the AKE1 test programme. The new AKE2 container is expected to receive FAA
certification in May 2004. The AKE3 container gives customers a choice of
different panels, door curtains and bases. The AKE3 container received FAA
certification on 19 March 2004.
Inresponse to market demand from international logistics providers and end
users, and to regulatory encouragement, our strategic partnership with Kelvin
Technologies Inc has accelerated the development of a refrigerated air cargo
container that actively controls product temperature for use by the
pharmaceutical, food and related industries. A prototype is in the final stage
of production and will shortly be submitted for testing.
ACS will be moving into its new manufacturing facility in RioRancho, New
Mexico, during April. This facility will provide 60,000 sq. ft of manufacturing
and office space which will accommodate US production needs for the foreseeable
future.
Machinery and equipment have been ordered which will allow ACS to produce its
product more efficiently and cost effectively. Some of the new equipment has
been designed or modified to meet ACS specifications. The new equipment will
permit the company to move from a primarily manual system of production to a
more automated mode. The new plant and equipment is expected to increase
manufacturing capacity to between 6,000 and 15,000 ULDs per annum depending upon
the number of shifts implemented. As a result unit production costs are expected
to fall significantly once panel production moves fully in house in the second
half of 2004. As well as producing ULDs, the plant will produce composite panels
for other markets such as automotive, construction and the military.
In October 2003, following the acceptance of ACS to the International Air
Transport Association ("IATA") ULD Technical Committee, ACS became a member of
the IATA Partnership Programme. This will ensure that Aerobox products will be
kept at the forefront of industry ULD development.
Management
Since the Interim Report, the management of the Aerobox group has been
strengthened as we move from a start up technology development into volume sales
and production. Richard Scott joined Aerobox plc as Finance Director and Company
Secretary on 1 March 2004. Charles Edwards joined ACS as General Manager and
Vice President on 8 September 2003. ACS has also appointed an experienced
financial controller as well as managers for manufacturing, quality control and
customer care.
Future plans
2004 will be another year of development and investment in new products,
production processes, manufacturing capacity and sales channels. This will
provide the foundation for 2005, which is expected to be the first full year of
significant sales volumes.
As the Company continues to focus on its core business, ACS engineers continue
to explore opportunities to make additional use of its composites and advanced
composite technology.
By the end of2004 ACS plans to:
* establish its position as a major supplier of LD3 containers to the
airline industry;
* develop and certify additional type lower deck units;
* enter the market place for temperature sensitive products;
* complete its manufacturing transition to automated production from
raw materials; and
* identify opportunities for application of its composite panels to
other industries.
Prospects
One of the most exciting aspects of the prospect is the strategic alliances into
which the Company has recently entered. These alliances will provide the
necessary expertise and in-house production capability to exploit the unique
characteristics inherent in the ACS thermo-plastic products. In particular they
will position the Company as a credible supplier of temperature controlled LD3
containers for use by the pharmaceutical industry and suppliers ofvaccines and
other medical related products where temperature control is vital.
The Board of Aerobox is confident that the hard work during 2003 on the
introduction of the original product into trials with many world airlines will
be rewardedby substantial sales once the lighter air cargo container is
manufactured by ACS from panels produced to the Company's specification at the
new manufacturing plant in the second half of 2004.
David Sebire
Chairman
CONSOLIDATED PROFIT ANDLOSS ACCOUNT
15 months ended
31 December
2003
#'000 #'000
TURNOVER: -
-
Cost of sales -
GROSS LOSS -
Administrative expenses - goodwill amortisation (690)
- other (1,676)
(2,366)
Other operating income
3
OPERATING LOSS
Continuing operations (1,160)
Acquisitions (1,203)
(2,363)
Interest receivable
12
Interest payable (269)
LOSS ON ORDINARY ACTIVITIES BEFORE TAXATION (2,620)
TAX ON LOSS ON ORDINARY ACTIVITIES -
LOSS ON ORDINARY ACTIVITIES AFTER TAXATION (2,620)
Loss per share - basic and diluted (4.8)p
The group has no recognised gains or losses other than the results for the
period as set out above. All of the activities of the group are classed as
continuing.
CONSOLIDATED BALANCE SHEET
31 December
2003
#'000 #'000
FIXED ASSETS
Intangible fixed assets 8,137
Tangible fixed assets 221
8,358
CURRENT ASSETS
Debtors 231
Cash at bank and in hand 516
747
CREDITORS: amounts falling due within one year (263)
NET CURRENT ASSETS 484
TOTAL ASSETS LESS CURRENT LIABILITIES 8,842
CREDITORS: amounts falling due after more than one year (126)
NET ASSETS 8,716
CAPITAL AND RESERVES
Called up share capital 842
Share premium account 10,521
Profit and loss account (2,620)
Foreign exchange (27)
SHAREHOLDERS' FUNDS - All Equity 8,716
CONSOLIDATED CASH FLOW STATEMENT
CASH FLOW STATEMENT
For the period ended 31 December 2003
15 months ended
31 December
2003
#'000
Net cash flow from operating activities (1,933)
Returns on investments and servicing of finance (39)
Capital expenditure and financial investment (36)
Acquisitions and disposals (9)
CASH OUTFLOW BEFORE FINANCING (2,017)
Financing 2,533
INCREASE IN CASH IN THE PERIOD 516
RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET DEBT
For the period ended 31 December 2003
15 months ended
31 December
2003
#'000
Increase in cash in the period 516
Cash decrease from decrease in debt and lease financing (154)
MOVEMENT IN NET DEBT IN THE PERIOD 362
Net funds at 2 October 2002 -
NET FUNDS AT 31 DECEMBER 2003 362
NOTES
1. LOSS PER SHARE
The calculation of loss per share is based on the loss of #2,620,000 and
a weighted average number of ordinary shares in issue during the period of
54,348,893.
2. STATUS OF FINANCIAL INFORMATION
The financial information set out in this report does not constitute the
Company's statutory accounts for the year ended 31 December 2003, but is derived
from those accounts. Statutory accounts for the year ended 31 December 2003
will be delivered to the Registrar of Companies shortly. The auditors have
reported on the statutory accounts for the year ended 31 December 2003 and their
opinion was unqualified for these financial statements.
3. GOODWILL
Goodwill arising on the acquisition of Aerospace Composite Structures
LLC amounting to #8,827,000 has been capitalised and amortised through the
profit and loss account on a straight line basis over a period of 10 years.
4. TAXATION
The group has no liability to current taxation due to the existence of
tax losses. The group has no potential liability to deferred taxation.
5. DIVIDEND
The Directors are not recommending the payment of a dividend.
6. COPIES OF THE REPORT AND ACCOUNTS
The report and accounts for the period ended 31 December 2003 will be
posted to shareholders in due course and further copies will be available from 1
May 2004.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR GIGDSBGGGGSB
Aerobox (LSE:ARX)
Historical Stock Chart
From Jan 2025 to Feb 2025
Aerobox (LSE:ARX)
Historical Stock Chart
From Feb 2024 to Feb 2025
