Interim Results
Axis Intermodal PLC
25 September 2007
Axis Intermodal plc
('Axis' or 'the Group')
Interim Results for the six months ended 30 June 2007
Axis Intermodal plc, the European transport equipment contract hire group, today
announces its unaudited interim results for the six months ended 30 June 2007.
Group Highlights:
• Turnover up by 26% to £5.33 million (2006: £4.24 million)
• Operating profit of £253,000 up 36% (2006: £186,000)
• Single Axis brand for all companies
• EPS 0.49p (2006: 0.03p)
• UK fleet expands by 53%
• German swapbody fleet grows by 15%
• Interim dividend of 0.15p per ordinary share to be paid on 22 October 2007
• Adoption of IFRS
Robert Montague, Executive Chairman, commented:
'We are pleased to report our interim results for the six months ended 30 June
2007 and the Group has made very good progress during the period. Under the
single Axis brand the businesses in the UK and Germany have delivered further
fleet expansion, increasing our fleet of trucks, trailers and swap bodies so far
this year by 830 units.
As a result of the continuing development of our relationship in Germany with
our KG partners we have 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. In fact, to date this year we have
replaced 12% of our UK fleet in addition to the headline increase.'
Enquiries:
Axis Intermodal plc Tel: 01993 883148
Robert Montague, Executive Chairman
Amy Williams, Senior Business Assistant
James Harris, Strand Partners Limited Tel: 0207 409 3494
Chairman's Statement
We are pleased to report our interim results for the six months ended 30 June
2007 and the Group has made very good progress during the period. Under the
single Axis brand the businesses in the UK and Germany have delivered further
fleet expansion increasing our fleet of trucks, trailers and swap bodies so far
this year by 830 units.
As a result of the continuing development of our relationship in Germany with
our KG partners we have 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 £5.328 million (2006: £4.240 million) from which the
Group achieved an operating profit before interest of £253,000 (2006: £186,000).
After net interest costs of £62,000 (2006: £166,000) the Group recorded a profit
after tax of £288,000 (2006: £20,000) resulting in an increase in EPS from 0.03
pence to 0.49 pence.
Net cash outflow during the period amounted to £1.022 million which included a
prepayment for the acquisition of swapbodies in Germany of £1.082 million; this
represents approximately 200 swapbodies and these funds are recovered as
deliveries to our clients are effected.
These results reflect the adoption of IFRS by the Company, and a detailed
explanation of the transition has today been posted on the company's website at
www.axisintermodal.com.
Review of Operations
The fleet of trucks, trailers and swapbodies has grown to 3,779 at 30 June 2007
(2006: 2,743).
United Kingdom
The demand for trucks and trailers in 2007 continues to be buoyant. The upturn
in demand has been fuelled by the improvement in the German economy and the new
markets created by the expanded EU member states.
The enforced changes to the truck specification under the European emission
standards has resulted in an increased demand for the latest truck equipment
with a resultant hardening of contract hire rates. New orders for trucks and
trailers are anticipated for delivery into late 2008 and by forward ordering
Axis UK has achieved good delivery availability for equipment and is therefore
well positioned to fulfil customer demand. This is despite the fact that
deliveries of equipment in the EU have been under pressure with manufacturers
finding it difficult to meet demand owing to shortages of parts including axles
and even, in some cases, tyres.
In addition to a fleet replacement programme of 12% in the half year, the total
UK fleet increased by 53% to 926 vehicles in the period and is currently 993.
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 with customers as far a field as Southampton to Aberdeen.
The re-branding of the company as Axis Intermodal has led to a greater awareness
within the UK market place with our customer base growing by 33% during the
period.
To meet organic growth targets we have recruited additional experienced Business
Managers across the UK and we are well positioned to continue to grow the
business throughout 2008 and 2009. Duncan Scillitoe was appointed to the board
of Axis UK as UK Sales Director to spearhead this growth. We have centralised
the maintenance control at the Oxford head office and now offer our customers 24
/7 direct dial telephone contact. Additionally, we are upgrading our fleet
management system which will further streamline overall customer service whilst
improving cost control.
Major European truck and trailer manufacturers are predicting that the current
shortage of equipment will continue into 2009 and we are well positioned to take
advantage of the ongoing customer demand.
Axis Germany
Axis Germany increased its swap body fleet in the first six months of the year
by 15% to 2,853 units and the fleet is currently 2,929 units. We have ordered a
further 710 swapbodies from YMCL, Krone and RETA to meet client demand resulting
from the strength of the German economy and the expansion of the EU.
We have been successful in renewing a major long term contract with Steinle/DSV
for 740 swapbodies. Other clients including Hellmann, DPD, Hangartner, and GLS
(a subsidiary of Royal Mail) have committed to a substantial number of the new
swapbodies. A contract has recently been signed with DHL for 350 new customer
branded swapbodies to be delivered in the fourth quarter of 2007.
There is a positive outlook for the transportation industry in Germany and
across Europe for 2008 and 2009.
Dividend
The Board has declared an interim dividend of 0.15 pence per ordinary share
(2006: 0.13 pence) and looks forward to further dividend payments. This interim
dividend will be paid on 22 October 2007 to shareholders on the register as at
the close of business on 5 October 2007.
Outlook
The Board's strategy of continuing to develop and invest in our UK and German
activities is showing rewards, as reflected in the increases in turnover and
growth in market share. This growth gives the Board confidence that its actions
will deliver shareholder value in the second half of the year and further
improvement in subsequent years.
Robert J Montague CBE
Executive Chairman
Consolidated income statement for the period
ended 30 June 2007
Unaudited Unaudited Unaudited
Six Six Year ended
months ended months ended 31 December
30 June 2007 30 June 2006 2006
Note £'000 £'000 £'000
Revenue 5,328 4,240 9,148
Cost of sales (3,624) (2,777) (5,757)
-------- -------- ---------
Gross profit 1,704 1,463 3,391
Administrative expenses (1,451) (1,277) (2,544)
-------- -------- ---------
Operating profit 253 186 847
Interest income 9 1 4
Finance costs (5) (96) (172)
Finance lease interest (66) (71) (150)
-------- -------- ---------
Profit on ordinary activities
before tax 191 20 529
Tax on profit on ordinary
activities 3 97 - (26)
-------- -------- ---------
Profit for the period 288 20 503
Attributable to:
Equity holders of the parent 288 20 502
Minority interests - - 1
-------- -------- ---------
288 20 503
======== ======== =========
Earnings per share 4
Basic - pence 0.49 0.03 0.85
======== ======== =========
Diluted - pence 0.49 0.03 0.85
======== ======== =========
Consolidated statement of recognised income and expense
for the period ended 30 June 2007
Unaudited Unaudited Unaudited
Six Six Year ended
months ended months ended 31 December
30 June 2007 30 June 2006 2006
£'000 £'000 £'000
Exchange differences on translation
of foreign operations 6 (10) (49)
--------- -------- --------
Net income recognised directly in
equity 6 (10) (49)
Profit for the period 288 20 503
-------- -------- --------
Total recognised income and
expense for the period 294 10 454
========= ======== ========
Consolidated balance sheet
at 30 June 2007
Unaudited Unaudited Unaudited
30 June 30 June 31 December
2007 2006 2006
Note £'000 £'000 £'000
Non-current assets
Goodwill 3,519 3,146 3,519
Property, plant and equipment 2,490 5,812 2,564
Deferred tax assets 162 - -
-------- -------- ---------
6,171 8,958 6,083
-------- -------- ---------
Current assets
Trade and other receivables 2,856 1,645 2,422
Cash and cash equivalents 389 6 1,417
Non-current assets held for sale 5 1,082 - -
-------- -------- ---------
4,327 1,651 3,839
-------- -------- ---------
Total assets 10,498 10,609 9,922
======== ======== =========
Current liabilities
Trade and other payables (3,185) (3,551) (3,371)
-------- -------- ---------
(3,185) (3,551) (3,371)
-------- -------- ---------
Net current assets/(liabilities) 1,142 (1,900) 468
-------- -------- ---------
Non-current liabilities
Other non-current payables (1,909) (2,330) (1,539)
Deferred tax liabilities (111) (162) (46)
-------- -------- ---------
(2,020) (2,492) (1,585)
-------- -------- ---------
Total liabilities (5,205) (6,043) (4,956)
======== ======== =========
Net assets 5,293 4,566 4,966
======== ======== =========
Equity
Share capital 2,943 2,943 2,943
Share premium 1,070 1,070 1,070
Share based payments reserve 6 164 97 131
Other reserves 6 180 180 180
Translation reserve 6 (43) (10) (49)
Retained earnings 6 979 286 691
-------- -------- ---------
Total equity 5,293 4,566 4,966
======== ======== =========
Consolidated condensed cash flow statement
for the period ended 30 June 2007
Unaudited Six Unaudited Six Unaudited Year
months ended months ended ended 31 December
30 June 2007 30 June 2006 2006
£'000 £'000 £'000
Profit before taxation 191 20 529
Adjustments for:
Depreciation 260 553 817
Interest expense 71 167 322
Interest income (9) (1) (4)
Share option expense 33 38 72
Loss / (profit) on sale of property,
plant and equipment 20 50 (258)
(Increase)in debtors (438) (259) (1,021)
(Decrease) / increase in creditors (129) 278 806
Interest paid (71) (166) (322)
Income taxes paid (52) - (38)
-------- -------- ---------
Net cash from operating activities (124) 680 903
-------- -------- ---------
Purchases of property, plant and equipment (339) (676) (1,591)
Proceeds on disposal of property, plant and equipment 137 776 4,895
Other investing cash flows (net) (1,073) (25) (21)
-------- -------- ---------
Net cash used in investing activities (1,275) 75 3,283
-------- -------- ---------
Repayments of borrowings (412) (1,008) (3,485)
Other financing cash flows (net) 789 265 704
-------- -------- ---------
Net cash used in financing activities 377 (743) (2,781)
Net(decrease)/increase in cash and cash
equivalents (1,022) 12 1,405
Cash and cash equivalents at 1 January 1,417 4 4
Effect of foreign exchange rate changes (6) (10) 8
Cash and cash equivalents at 30 June
-------- -------- ---------
Bank balances and cash 389 6 1,417
======== ======== =========
Notes to the interim financial statements
for the period ended 30 June 2007
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 2007.
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
This interim financial information has been prepared by applying the
IFRS-compliant accounting policies published on the company's website.
3 Tax
The Group has recognized the benefit of unutilised tax losses to the extent to
which the Directors believe that there is sufficient certainty of future trading
profits.
4 Earnings per share
From continuing operations
Earnings Six months Six months Year ended
ended ended 31 December
30 June 2007 30 June 2006 2006
£'000 £'000 £'000
Earnings for the
purposes of basic
earnings per share
being net profit
attributable to
equity holders of
the parent 288 20 503
--------- --------- ---------
Earnings for the
purposes of diluted
earnings per share 288 20 503
========= ========= =========
The calculation of the basic and diluted earnings per share is based on the
following data:
Number of Shares
30 June 30 June 31 December
2007 2006 2006
Number Number Number
Weighted average
number of ordinary
shares for the
purposes of basic
earnings per share 58,861,443 58,861,443 58,861,443
Effect of dilutive potential
ordinary shares
Share options - - -
--------- --------- ---------
Weighted average
number of ordinary
shares for the
purposes of diluted
earnings per share 58,861,443 58,861,443 58,861,443
========= ========= =========
In accordance with IAS 33, no share options and no warrants have a dilutive
effect on the earnings per share calculation (2006: nil).
5 Non-current assets held for sale
Non-current assets acquired and held for sale relate to recently acquired
swapbodies; as soon as all relevant documentation is completed the assets
concerned are sold to the relevant financing company.
6 Reserves & retained earnings
Share based payments Other Translation Retained
reserve reserves reserve earnings Total
£'000 £'000 £'000 £'000 £'000
Balance at 1 January 2006 59 180 - 266 505
Exchange differences on
transulation of
overseas operations - - (10) - (10)
Share options expensed 38 - - - 38
Net profit for the period - - - 20 20
--------- ------- -------- ------- -----
Balance at 30 June 2006 97 180 (10) 646 913
========= ======= ======== ======= =====
Exchange differences on
translation of overseas
operations (Jul-Dec) - - (39) - (39)
Share options expensed (Jul-Dec) 34 - - - 34
Net profit for the
period (Jul-Dec) - - - 483 483
Equity minority
interests Jul-Dec) - - - (1) (1)
Dividends paid(Jul-Dec) - - - (77) (77)
--------- ------- -------- ------- -------
Balance at 31 December 2006 131 180 (49) 691 953
========= ======= ======== ======= =======
Balance at 1 January 2007 131 180 (49) 691 953
Exchange differences on
translation of overseas - - 6 - 6
operations
Share options expensed 33 - - - 33
Net profit for the period - - - 288 288
--------- ------- -------- ------- -------
Balance at 30 June 2007 164 180 (43) 979 1,280
========= ======= ======== ======= =======
7 Segment information
The following is an analysis of the revenue and results for the period, analysed
by geographical segment, the Group's primary basis of segmentation.
The Group comprises the following business segments:
United Kingdom
Rest of Europe
Revenue from external customers Segment result
Six months Six months Year ended Six months Six months Year ended
ended ended 31 December ended ended 31 December
30 June 2007 30 June 2006 2006 30 June 2007 30 June 2006 2006
£'000 £'000 £'000 £'000 £'000 £'000
United Kingdom 4,257 3,187 6,634 361 81 (97)
Rest of Europe 1,071 1,053 2,514 (108) 105 944
---------- ---------- ----------
Total Revenue: 5,328 4,240 9,148
---------- --------- ---------
Operating profit: 253 186 847
========== ========= =========
This information is provided by RNS
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