Interim Results
Intermodal Resource Plc
12 September 2005
INTERMODAL RESOURCE PLC
('Intermodal' or 'the group')
Maiden Interim Results
for the six months ended 30 June 2005
Intermodal Resource plc, the swapbody, road trailer and truck rental group today
announces its unaudited interim results for the six months ending 30 June 2005.
This is its first interim statement since its admission to AIM on 31 August
2004. There are no financial comparatives as the group was only formed in August
2004.
Key Points:
• Admitted to AIM in August 2004
• Turnover of £1.221m
• Profit before tax and amortisation of goodwill of £130,000
• Axis Intermodal - increased utilisation
• Trailerent - encouraging growth from standing start
• Acquisition of truck rental company, Taylored Hire in July 2005
Robert Montague, Chief Executive Officer, commented,
'We are pleased with the progress the Group has made over the period. In July,
we were delighted to announce the acquisition of Taylored Hire Limited, a truck
and trailer contract hire and rental business based in the North West of
England. The acquisition expands the Group's range of products and services and
is entirely complementary to our existing activities.
Looking ahead, there are good growth opportunities and our objective remains
that of building our rental business in the UK and Europe in a low risk manner,
minimising our exposure to residual values and creating strong cash flows.'
Enquiries:
Intermodal Resource plc Tel: 020 7448 1000 (today)
Robert Montague, Chief Executive Officer Tel: 01993 883148
Biddicks Tel: 020 7448 1000
Zoe Biddick or Katie Tzouliadis
INTERMODAL RESOURCE PLC
Chief Executive Officer's statement
Introduction
We are pleased to report our first interim results since Intermodal's admission
to AIM on 31 August 2004.
We are pleased with the progress the Group has made over the period. In early
July, we were delighted to announce the acquisition of Taylored Hire Limited
('THL'), a truck and trailer contract hire and rental business based in the
North West of England. The acquisition expands the Group's range of products and
services and is entirely complementary to our existing activities. There is no
contribution from THL in these results as the company was acquired after the
period end.
Looking ahead, there are good growth opportunities and our objective remains
that of building our rental business in the UK and Europe in a low risk manner,
minimising our exposure to residual values and creating strong cash flows.
Results
Turnover for the period was £1.2 million on which the group achieved a profit
before tax and goodwill amortisation of £130,000. As the group was only formed
in August 2004, shortly prior to flotation, there are no financial comparatives
for 2004. During the period the Company raised £600,000 through a placing with
institutional and other investors to support the continuing expansion of the
German swapbodies business. Basic earnings per share were 0.22p per share and
net assets grew during the period from £2.2 million to £2.8 million.
Business Overview
Our core business, Axis Intermodal, which provides swapbodies (domestic
transport containers for use on roads, rail and barges) and chassis for rental
and which operates principally in Europe, performed well over the period,
securing a number of longer term contracts of three years. Utilisation levels
have further improved and currently stand at 92% on our fleet of 2,336 swapbodies
and chassis. This compares to utilisation of 89% at the end of December 2004.
In the UK, Trailerent, which provides road trailers for rental, is progressing
well although against a background of weaker consumer demand. The business was
started from scratch in April 2004, and since then, we have built up a strong
team and are steadily establishing a presence in the market. Trailerent now has
a rental fleet of 94 trailers.
In July, we made a major step forwards in the development of the UK business,
with the acquisition of truck and trailer rental business, Taylored Hire
Limited. THL, which is based in the North West of England, operates a fleet of
some 348 trucks and trailers. It also runs on a similar business model to ours
in so far as the majority of its fleet is financed through operating leases
matched to long term contract hire. The addition of truck rental services
enables us to satisfy customer demand for 'full rig' hire and so broadens our
market appeal.
We are pleased that Craig McCarthy and his management team from THL have joined
the Group to continue our planned national expansion. Many of our clients hire
both trucks and trailers and I am delighted that we have already seen interest
in joint marketing of both products with the sales teams working very closely
together.
Prospects
Despite the challenges of the UK retail economy faced by Trailerent, we are
encouraged by its continuing development, and we expect to see further positive
economic growth and demand from Germany in the second half of the year, which
will benefit Axis. We continue our drive for further growth and the second half
will reflect the benefits of the integration of THL within the Group.
Robert J Montague CBE,
Chief Executive Officer
INTERMODAL RESOURCE PLC
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Six months 13 months
ended 30 June ended 31
December
2005 2004
Unaudited Audited
£000 £000
Turnover 1,221 1,086
Cost of sales 460 512
------------------------------- ----------- ------------
Gross profit 761 574
Administrative expenses excluding
amortisation of goodwill 535 467
Amortisation of goodwill 35 28
------------------------------- ----------- ------------
Operating profit 191 79
Net interest payable 96 79
------------------------------- ----------- ------------
Profit on ordinary activities before
taxation 95 -
Tax on profit on ordinary activities - -
------------------------------- ----------- ------------
Retained profit for the period 95 -
------------------------------- ----------- ------------
Basic earnings per share (pence) 0.22 -
Diluted earnings per share (pence) 0.20 -
Statement of total recognised gains and losses
Six months 13 months
ended 30 June ended 31
December
2005 2004
Unaudited Audited
£000 £000
Profit for the financial period 95 -
Foreign exchange movements (52) -
------------------------------- ----------- ------------
Total gains and losses recognised since
last financial statements 43 -
------------------------------- ----------- ------------
All activities are continuing.
INTERMODAL RESOURCE PLC
CONSOLIDATED BALANCE SHEET
30 June 31 December
2005 2004
Unaudited Audited
£000 £000
Fixed assets
Intangible assets 1,292 1,327
Tangible assets 3,919 4,232
------------------------------- ----------- ------------
5,211 5,559
Current assets
Debtors 379 208
Cash at bank and in hand 8 6
------------------------------- ----------- ------------
387 214
Creditors - amounts falling due within one
year 1,736 1,967
------------------------------- ----------- ------------
Net current liabilities (1,349) (1,753)
------------------------------- ----------- ------------
Total assets less current liabilities 3,862 3,806
Creditors - amounts falling due after more
than one year 1,076 1,645
------------------------------- ----------- ------------
2,786 2,161
------------------------------- ----------- ------------
Capital and reserves
Called up share capital 2,269 2,038
Share premium account 474 123
Profit and loss account 43 -
------------------------------- ----------- ------------
2,786 2,161
------------------------------- ----------- ------------
INTERMODAL RESOURCE PLC
CONSOLIDATED CASH FLOW STATEMENT
Six months 13 months
ended 30 June ended 31
December
2005 2004
Unaudited Audited
Note £000 £000
Net cash inflow from operating
activities 4 125 429
--------------------------------- ------ --------- -----------
Returns on investments and servicing of
finance
Interest received 1 1
Interest paid (70) (41)
Finance lease interest paid (27) (39)
--------------------------------- ------ --------- -----------
Net cash outflow from investments and
servicing of finance (96) (79)
--------------------------------- ------ --------- -----------
Capital expenditure
Purchase of tangible fixed assets (129) (115)
Sale of tangible fixed assets 156 197
--------------------------------- ------ --------- -----------
Net cash inflow from capital
expenditure 27 82
--------------------------------- ------ --------- -----------
Acquisitions and disposals
Net overdrafts acquired with subsidiary
undertakings - (358)
--------------------------------- ------ --------- -----------
Cash inflow before financing 56 74
--------------------------------- ------ --------- -----------
Financing
Issue of shares 600 520
Expenses relating to the issue of
shares (19) (724)
Long term loan finance 45 55
Repayment of long term loan finance (329) (69)
Capital element of finance leases (267) (208)
--------------------------------- ------ --------- -----------
Net cash inflow (outflow) from
financing 30 (426)
--------------------------------- ------ --------- -----------
Net increase (decrease) in cash 86 (352)
Movement in overdraft (20) 358
Effect of exchange rate fluctuations (64) -
--------------------------------- ------ --------- -----------
Increase in cash at bank and in hand 2 6
--------------------------------- ------ --------- -----------
INTERMODAL RESOURCE PLC
NOTES TO THE INTERIM FINANCIAL STATEMENTS
1 Preparation of the interim financial statements
The unaudited results for the six months ended 30 June 2005 have been prepared in
accordance with applicable UK accounting standards. There are no comparative figures
as this is the first interim statement since the formation of the group in August
2004. The accounting policies applied are those set out in the group's annual report
and accounts for the period ended 31 December 2004. The financial information set
out in this interim statement does not constitute statutory financial information
within the meaning of section 240 of the Companies Act 1985. The profit and loss
account and cash flow statement for the period ended 31 December 2004 and the balance
sheet at 31 December 2004 are an abridged statement of the full group financial
statements for that period which have been delivered to the Registrar of
Companies. The report of the auditors on the group financial statements for the period
ended 31 December 2004 was unqualified and did not contain a statement under either
section 237(2) or section 237(3) of the Companies Act 1985.
2 Earnings per share
The calculation of the basic and diluted earnings per share is based on a profit on
ordinary activities after tax of £95,000 at 30 June 2005 (nil profit at 31 December
2004) and weighted average number of issued shares of 43,062,788 together with the
dilutive effect of securities of 3,667,970.
3 Dividend
The directors' intention is for the group to retain its earnings to finance the
growth and expansion of its business and accordingly they do not intend to pay
dividends in the immediate future.
4 Reconciliation of operating profit to net cash inflow from operating activities
Six months 13 months
ended 30 June ended 31
December
2005 2004
Unaudited Audited
£000 £000
Operating profit 191 79
Amortisation 35 28
Depreciation 219 178
Loss (profit) on sales of fixed assets (9) 11
Decrease (increase) in debtors (171) 170
(Decrease) increase in creditors (140) (37)
------------------------------------ ------- ----------- --------
Net cash inflow from operating
activities 125 429
------------------------------------ ------- ----------- --------
5 Copies of interim report
Copies of the interim statement will be sent to shareholders. Further copies will be
available from the company secretary at 8 Fenlock Court, Lower Road, Long Hanborough,
Oxfordshire OX29 8LN.
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