RNS Number : 2589E
Axis Intermodal PLC
25 September 2008
Axis Intermodal plc
("Axis" or "the Group")
Interim Results for the six months ended 30 June 2008
Axis (AIM: AXI), the European transport equipment contract hire group, today announces its unaudited interim results for the six months
ended 30 June 2008.
Group Highlights:
* Turnover increased by 62% to �8.594 million
* Profit after tax increased to �312,000 resulting in an increase in EPS from 0.49 pence to 0.53 pence
* The UK fleet increased by 34% to 1,562
* Strong performance from marine container division with long term contracts established in USA, Far East and Europe
* Acquisition of the spare parts business from Sea Containers Inc. for the sum of $250,000 to establish Axis SeaCo Parts
* Interim dividend increased by 67% to 0.25 pence per ordinary share
Robert Montague, Executive Chairman, commented:
"The growth we have seen this year so far has been good and there are indications that we will succeed in our expansion plans for this
year and beyond. However, we live in uncertain times and Axis cannot assume that it will defy gravity as the clouds of recession continue to
develop. Despite this caution we are well positioned to take advantage of all business opportunities.''
Further information:
Axis Intermodal plc Tel: +44 (0)1993 883148
Robert J. Montague, Executive Chairman
Amy Williams, Business Assistant to Executive
Chairman
Strand Partners Limited (Nominated Adviser) Tel: +44 (0)207 409 3494
James Harris
SVS Securities plc (Broker) Tel: +44 (0)207 638 5600
Peter Manfield
Media enquiries Tel: +44 (0)1865 882988
BOTTLE PR
Rachel Brewin (rachelbrewin@bottlepr.co.uk)
Gillian Gibbons (gilliangibbons@bottlepr.co.uk)
Claire Cairns (clairecairns@bottlepr.co.uk)
Chairman's Statement
I am pleased to present our interim results for the six months ended 30 June 2008.
The Group has made good progress during the period with strong growth in Sea-Axis (our marine container activity), the European Swapbody
fleet, as well as the UK truck and trailer division, all under the single Axis brand.
These results reflect the ability to grow the fleets in a low risk way, continuing to work with our KG partners having access to
substantial funding with which to meet the demands of the business, while still maintaining the risk management strategy of protecting
exposure to residual values.
Financial Results
Turnover for the period was �8.594 million (2007: �5.328 million) from which the Group achieved an operating profit before interest of
�535,000 (2007: �253,000).
After interest of �161,000 (2007: �62,000) the Group recorded a profit after tax of �312,000 (2007: �288,000) resulting in an increase
in EPS from 0.49 pence to 0.53 pence.
Review of Operations
The fleet of trucks, trailers, marine containers and swapbodies has grown to 6,502 units at 30 June 2008 (2007: 3,779).
United Kingdom
The demand for trucks and trailers in 2008 has been good, whilst order books at the manufacturers shorten. The need for equipment has
continued and we have held prices to those in 2007 through flexible commitment undertakings with our suppliers enabling them to forward
commit to the necessary raw materials.
The UK fleet increased by 34% to 1,562 vehicles in the period and is currently 1,700. With the current demand and forward orders in
place, the fleet is expected to almost double in size this year. The business has grown from a regional player to a national player in the
UK market with our customer base growing by 38% during the period.
Our new fleet management system is fully operational providing greater focus and analysis which will further streamline overall customer
service whilst improving cost control.
Axis Germany
Axis Germany increased its Swapbody fleet in the first six months of the year by 10.2% to 3,634 units and the fleet is currently 4,093
with a further 1,000 Swapbodies from YMCL, Krone and RETA due to be delivered to meet additional client demand.
We have been successful in winning further long term business with DHL and many other clients including Hellmann, DPD, Hangartner and
GLS (a subsidiary of Royal Mail) in Germany, Switzerland, Austria and other European countries.
There is a cautiously optimistic outlook for the transportation industry in Germany and across Europe for 2008 and 2009.
Sea-Axis
Our new division has started well with long term contracts being won in the USA, Far East and Europe. We have now established a network
of offices including Hong Kong, Singapore and Shanghai in addition to our European representation and have welcomed Clive Francis as
Managing Director of the Marine Container division.
Equipment orders have been delivered including tanks and refrigerated containers as well as the licensed SeaCell2 pallet wide dry
freight container. The fleet at the end of June stood at 2,410 teu (twenty foot equivalent unit, the standard unit measurement in the
industry).
Axis SeaCo Parts
In May this year we successfully acquired this spare parts business from Sea Containers America Inc. for the sum of US$ 250,000. The
strategy of this "bolt on" business is that it offers a 'just in time' operation supplying spares for the marine container and shipping
industry and we are able to support and have a close working relationship with clients not purely in the supply of equipment but as a full
service partner. We welcome Vic Warren and his team to Axis.
Dividend
The Board has declared an interim dividend of 0.25 pence per ordinary share (2007: 0.15 pence) payable on 7 November 2008 to
shareholders on the register as at the close of business on 24 October 2008.
Outlook
The Board's strategy is to continue to develop and invest in all our range of assets and to grow turnover and EPS. The growth we have
seen this year so far has been good and there are indications that we will succeed in our expansion plans for this year and beyond. However,
we live in uncertain times and Axis cannot assume that it will defy gravity as the clouds of recession continue to develop. Despite this
caution we are well positioned to take advantage of all business opportunities.
Robert J Montague CBE
Executive Chairman
Condensed consolidated income statement
for the period ended 30 June 2008
Unaudited Six months Unaudited Six months Audited Year ended
ended 30 June 2008 ended 30 June 2007 31 December 2007
Note �'000 �'000 �'000
Revenue 8,594 5,328 12,085
Cost of sales (5,466) (3,624) (7,690)
Gross profit 3,128 1,704 4,395
Administrative expenses (2,593) (1,451) (3,740)
Operating profit 535 253 655
Interest income 3 9 16
Finance costs (26) (5) (27)
Finance lease interest (138) (66) (85)
Profit on ordinary activities 373 191 559
before tax
Tax on profit on ordinary (61) 97 (60)
activities
Profit for the period 312 288 499
Attributable to:
Equity holders of the parent 312 288 499
312 288 499
Earnings per share 3
Basic - pence 0.53 0.49 0.85
Diluted - pence 0.53 0.49 0.85
Consolidated statement of recognised income and expense
for the period ended 30 June 2008
Unaudited Six months Unaudited Six months Audited Year ended
ended 30 June 2008 ended 30 June 2007 31 December 2007
�'000 �'000 �'000
Exchange differences on translation of foreign (21) 6 (30)
operations
Net income recognised directly (21) 6 (30)
in equity
Profit for the period 312 288 499
Total recognised income and expense for the period 291 294 469
Condensed consolidated balance sheet
at 30 June 2008
Unaudited 30 June Unaudited 30 June 2007 Audited 31 December 2007
2008
Note �'000 �'000 �'000
Non-current assets
Goodwill 3,519 3,519 3,519
Property, plant and equipment 4,937 2,490 3,289
Deferred tax assets 87 162 104
8,543 6,171 6,912
Current assets
Inventories 305 - -
Trade and other receivables 4 6,452 2,856 4,515
Cash and cash equivalents 247 389 359
Non-current assets held for - 1,082 -
sale
7,004 4,327 4,874
Total assets 15,547 10,498 11,786
Equity
Share capital 2,943 2,943 2,943
Share premium 1,070 1,070 1,070
Share-based payment reserve 5 236 164 218
Other reserve 5 180 180 180
Translation reserve 5 (100) (43) (79)
Retained earnings 5 1,315 979 1,003
Total equity 5,644 5,293 5,335
Non-current liabilities
Borrowings 1,114 354 748
Customer deposits 266 277 255
Deferred tax liabilities 199 111 157
Obligations under finance 3,192 1,555 2,456
leases
4,771 2,297 3,616
Current liabilities
Trade and other payables 2,944 2,083 1,636
Current tax liabilities 20 97 66
Obligations under finance 1,434 638 574
leases
Bank overdrafts and loans 734 90 559
5,132 2,908 2,835
Total liabilities 9,903 5,205 6,451
Total equity and liabilities 15,547 10,498 11,786
Condensed consolidated cash flow statement
for the period ended 30 June 2008
Unaudited Six months Unaudited Six months Audited Year ended
ended 30 June 2008 ended 30 June 2007 31 December 2007
�'000 �'000 �'000
Profit before taxation 373 191 559
Adjustments for:
Depreciation 406 260 617
Profit/loss on disposal of
property, plant and
equipment 2 20 (41)
Interest expense 162 71 112
Interest income (3) (9) (16)
Share option expense 18 33 87
Operating cashflows before 958 566 1,318
movements in working capital
Increase in receivables (1,937) (438) (2,093)
Increase / (decrease) in 1,307 (129) (555)
payables
Cash generated by operations 328 (1) (1,330)
before interest and taxation
Interest paid (162) (71) (112)
Income taxes paid (96) (52) (161)
Net cash inflow / (outflow)
from operating
activities 70 (124) (1,603)
Investing activities
Interest received 3 - 16
Proceeds on disposal of 81 137 288
property, plant and equipment
Purchases of property, plant (451) (339) (509)
and equipment
Acquisition of subsidiary (126) - -
Other investing cash flows - (1,073) -
(net)
Net cash used in investing (493) (1,275) (205)
activities
Financing activities
Dividends paid 0.0 - (187)
Other new loans raised 385 1,029 811
Repayments of other loans - - (2)
Repayments of bank loans (19) (412) (63)
Repayment of obligations under (232) (330) (402)
finance leases
Net cash from financing 134 287 157
activities
Net decrease in cash and cash (289) (1,112) (1,651)
equivalents
Cash and cash equivalents at 1 (200) 1,417 1,417
January
Effect of foreign exchange 2 (6) 34
rate changes
Cash and cash equivalents at (487) 299 (200)
30 June
1. Basis of preparation
These interim financial statements do not constitute statutory accounts within the meaning of the Companies Act 1985 and are unaudited.
The Board approved the unaudited interim financial statements on 24 September 2008.
The interim financial statements have been prepared on the going concern basis and under the historical cost convention.
These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in which
the group operates.
2. Significant accounting policies
The interim financial information has been prepared applying the accounting policies and presentation that were applied in the
preparation of the group's 2007 financial statements, which are published on the group's website.
3. Earnings per share
From continuing operations
The calculation of the basic and diluted earnings per share is based on the following data:
Earnings
Six months ended 30 Six months ended 30 Year ended 31
June 2008 June 2007 December 2007
�'000 �'000 �'000
Earnings for the purposes of 312 288 499
basic earnings per share being
net profit attributable to
equity holders of the parent
Earnings for the purposes of
diluted earnings
per share 312 288 499
Number of shares
30 June 2008 30 June 2007 31 December 2007
Number Number Number
Weighted average number of 58,856,842 58,856,842 58,856,842
ordinary shares for the
purposes of basic earnings per
share
Effect of dilutive potential
ordinary shares:
Share options - - -
Weighted average number of
ordinary shares
for the purposes of diluted 58,856,842 58,856,842 58,856,842
earnings per share
In accordance with IAS 33, no share options and no warrants have a dilutive effect on the earnings per share calculation (2007: nil).
4. Trade and other receivables
Trade and other receivables comprise the following:
30 June 2008 30 June 2007 31 December 2007
�'000 �'000 �'000
Trade receivables 2,467 1,214 1,909
Income tax receivable 17 - 17
Other receivables 50 103 43
Prepayments and accrued income 3,918 1,539 2,546
6,452 2,856 4,515
5. Reserves and retained earnings
Share based payments Other Translation Retained
reserve reserves reserve earnings Total
�'000 �'000 �'000 �'000 �'000
Balance at 1 January 2007 131 180 (49) 691 953
Exchange differences on - - 6 - 6
translation of overseas
operations
Share options expensed 33 - - - 33
Net profit for the period - - - 288 288
Balance at 30 June 2007 164 180 (43) 979 1,280
Exchange differences on - - (36) - (36)
translation of overseas
operations (Jul-Dec)
Share options expensed 54 - - - 54
(Jul-Dec)
Net profit for the period - - - 211 211
(Jul-Dec)
Dividends paid (Jul-Dec) - - - (187) (187)
Balance at 31 December 2007 218 180 (79) 1,003 1,322
Balance at 1 January 2008 218 180 (79) 1,003 1,322
Exchange differences on - - (21) - (21)
translation of overseas
operations
Share options expensed 18 - - - 18
Net profit for the period - - - 312 312
Balance at 30 June 2008 236 180 (100) 1,315 1,631
6. Segment information
The following is an analysis of the revenue and results for the period, analysed by geographical segment.
The Group comprises the following geographical segments:
United Kingdom
Europe (ex.UK)
Rest of World
Revenue from external customers Segment result
Six Months ended 30 Six Months ended 30 Year Ended 31 Six months ended 30 Six months ended 30
Year ended 31
June 2008 June 2007 December 2007 June 2008 June 2007
December 2007
�'000 �'000 �'000 �'000 �'000
�'000
United Kingdom 6,566 4,257 9,351 232 361
627
Europe (ex. UK) 1,899 1,071 2,734 289 (108)
28
Rest of World 129 - - 14 -
-
Total revenue: 8,594 5,328 12,085
Operating profit: 535 253
655
7. Business combinations
On 14 May 2008, the group acquired 100% of the share capital of SeaCo Parts International Inc, a marine container parts retailer
operating in the US. The acquired business contributed revenues of �129,000, and net profit of �14,000 to the group from 14 May 2008 to 30
June 2008. The cost of the acquisition was USD 250,000.
Details of net assets acquired and goodwill are as follows:
Purchase consideration: $'000 �'000
- Cash paid 250 126
- Direct costs relating to the acquisition - -
Total purchase consideration 250 126
Book value of net assets acquired (750) (377)
Fair value adjustment 500 251
Goodwill - -
A fair value adjustment was applied at the date of acquisition by management, to write down specific inventories to their fair value.
The assets and liabilities arising from the acquisition are as follows:
Acquiree's
Fair value carrying value
$' 000 $' 000
Cash and balances at bank 91 91
Trade receivables 224 224
Other receivables 3 3
Inventories 174 174
Fixed assets 7 7
Total Assets 499 499
Trade payables 226 226
Other payables 23 23
Current liabilities 249 249
Net assets acquired 250 250
8. Availability of Interim Statements
A copy of Axis's interim statements is available from the Company's registered office at 15 Fenlock Court, Lower Road, Long Hanborough,
Oxfordshire OX29 8LN, registered number 04980247 and is also available for download from the Company's website at www.axisintermodal.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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