Preliminary Results

Axis Intermodal PLC 30 April 2008 Axis Intermodal plc ('Axis' or 'the Group') Preliminary Announcement of results for the period to 31 December 2007 Axis Intermodal plc, the European transport equipment and marine container contract hire group, today announces its preliminary results for the year ended 31 December 2007. Period highlights * Launch of the company's new marine container division, SeaAxis * UK and German fleet increased by 44% * Revenue increased by 32% in 2007 to £12m (2006: £9m) * Profit before tax and share based payment increased to £646,000 (2006: £601,000) * Earnings per share remained constant at 0.85p * Final dividend of 0.25p which represents a total dividend of 0.40p for the year (2006: 0.30p) * Fleet under management has increased by £14.6 million * Expansion of office network to include Hong Kong, Singapore, Shanghai and US, including the strengthening of activities in the Benelux, the Nordic countries Portugal and Spain Commenting on the results, Robert J. Montague CBE, Executive Chairman of Axis Intermodal, said: 'This year has seen positive growth across all our operations. We are delighted with the early indicators of success for SeaAxis, our new marine container division. We anticipate continued strong growth over the current financial year through both organic growth and appropriate acquisitions, should the opportunity arise. Above all, I feel strongly that working in partnership with our customers will always be the key to our success.'' - Ends - Further information: Axis Intermodal plc Robert J. Montague, Executive Chairman Tel: +44 (0)1993 883148 Amy Williams, Business Assistant to Executive Chairman Stephen Ball, Finance Director Tel: +44 (0)1481 246847 Strand Partners Limited James Harris Tel: +44 (0) 207 409 3494 Media enquiries BOTTLE PR Rachel Brewin (rachelbrewin@bottlepr.co.uk) Tel: +44 (0)1865 882988 Gillian Gibbons (gilliangibbons@bottlepr.co.uk) Claire Cairns (clairecairns@bottlepr.co.uk) Editors' Notes: * Axis Intermodal was established in 1995 to take advantage of the growing market for intermodal Swapbodies; it now manages over 10% of the 7.45m European Swapbody contract hire market * The Company has over 250 customers in both the UK and Europe including DHL Exel, Geopost, Kerry Logistics, Dairy Farmers of Great Britain, Bookers Cash and Carry and Freightliners as well as the German, French and Swiss postal services * SeaAxis is a division of Axis Intermodal plc. established to focus on specialist marine container leasing and to market the patented SeaCell2 cellular palletwide container and other special containers such as reefers, flatracks and tank containers * As well as agents in all the key European markets (Benelux, Scandanavia, Iberia, Italy, Germany and the UK), SeaAxis has now appointed an agent to oversee operations in the US and Caribbean * SeaAxis also has offices in Hong Kong, Shanghai and Singapore Axis Intermodal plc Chairman's statement Chairman's statement This has been a very exciting year of opportunity and growth for the Group especially with the addition of the marine container division branded as Sea Axis following the grant of a worldwide licence for the very successful 'SeaCell2' pallet wide container. These opportunities have enabled the Group to expand it's representation to include the Far East and the US plus, strengthening our activities in the Benelux and Nordic countries, Portugal and Spain. Our funding partners have made available capital for the acquisition of trucks, trailers, swapbodies and containers for us to manage on their behalf and to meet our client's requirements. All areas have performed well adding market share in conjunction with the strengthening of the Axis brand. Review of Operations Axis Germany Axis Germany, based in Cologne, specialises in the contract hire of swap bodies with the swap body fleet increasing by 33% from 2,488 units to 3,296 during 2007 (at 25 April 2008, the fleet size had grown to 3,420 units) This investment of more than €5.7m has been financed by a German KG under further management agreements with Axis for a period of 12 years, on similar terms to those already in place. Utilisation reached 93.5% during the year and total revenue increased by 8.8% with more than 61.5% of the swap body fleet operating under long term contracts. Axis has been very successful to gain some of the large logistic companies as clients including DHL, DPD, Hellmann and Swiss postal services and continues to build these relationships, for example, concluding with DHL during the year a contract for a further 350 new swap bodies in customer specification under long term contract. A full service package of maintenance and repairs is part of the contract hire agreement which includes a repair-time within 24 hours, daily inspection of equipment onsite, with highly flexible mobile service-vans. The customer is therefore able to concentrate on his 'core-business' with Axis ensuring that units are maintained and comply with the German UVV regulations. With this repair and service network and depots in Germany, Austria and Switzerland, Axis is well positioned in the market place and able to offer dedicated facilities to its customers. Axis Germany services over 10% of the European swap body rental market (based on managements' knowledge of the market) and will continue to increase the swap body fleet in conjunction with its KG partners aiming to become one of the main rental companies for Intermodal equipment in Europe. Axis UK As forecast in the Interim statement, the UK performance for 2007 continued to make progress in line with expectations The continued demand in Europe for Trucks and Trailers remains buoyant and manufacturer's deliveries now extend into Spring 2009. Our decision to forward order equipment has resulted in us being able to continue to supply customers with little or no lead in time. This has enabled us to substantially grow the fleet and our UK customer base. At 31 December 2007 the UK contract hire fleet stood at 1,168 units, which is a 93% increase for the year (at 25 April 2008, the fleet size had grown to 1,431 units, representing a growth of 23% on the year end fleet size). The customer base not only grew by 43% but the geographical spread of clients is now Cornwall to Scotland. The successful re-branding of the Axis UK products has greatly enhanced the industry's perception of Axis as a National and European brand. We have successfully installed our upgraded Fleet Management System and allied to the growth of the fleet we have recruited additional experienced staff to the central customer services centre in Oxford. Whilst our focus has been on growth we can only continue to expand the brand if our back up service performs to the highest level. Our commitment to safeguard our customers' Operators Licence continues to be a top priority. With the introduction of digital technology the vehicle operator is now even more closely monitored by VOSA to further improve safety and environmental standards. We take very seriously our responsibility as the supplier of vehicles in ensuring our customers can be confident in the quality of maintenance we provide. Our partnership approach with customers continues to bear fruit. Our Business managers continue to write profitable new business offering the latest equipment at a competitive price with top quality service. Repeat business and contracts gained by word of mouth recommendation is the most pleasing aspect of our continued success. With production in place with our chosen manufacturers for 2008 into Spring 2009 we are well placed to meet the predicted future demand of the industry. We look forward with confidence to a further period of growth for the UK business. SeaAxis SeaAxis is the third primary business of the Group and was launched in December 2007 to lease marine containers worldwide. The business is based in the UK and operates from the Oxford Axis office. The business will concentrate on the managing of specialised marine containers, in particular SeaCell2 cellular palletwide boxes, SeaFresh refrigerated containers, SeaRack flatracks and Sea-Tank tank containers. The Group has been given by the owners of the patented SeaCell2 design an agreement to lease SeaCell2s worldwide with only one other lessor holding a similar worldwide agreement and one other with a regional agreement that is restricted to Australasia. Our agreement gives Axis the right to lease and sell SeaCell2s, which are a household name for cellular palletwide containers in the marine container market. SeaCell2s bring benefits to the users of containers as shippers can carry more cargo in each SeaCell2 container than in a standard box. This reduces the cost of shipping cargo as each Seacell carries more freight and at the same time reduces the manufacturer's carbon footprint, as fewer SeaCell2s are needed to carry the cargo. Offices have been opened in London (for Iberia, Italy, UK/Ireland and South America), Hong Kong (for China and Far East) and agents appointed in Antwerp (for Benelux and France) and in Florida (for US and Caribbean). Equipment has been ordered and deliveries will commence in April 2008. Board Changes Since the end of the financial year, I am very pleased to announce that Mr. Stephen Dexter previously Office Managing Partner of the Oxford office at Grant Thornton has agreed to join the Board as a Non Executive Director and will Chair the Audit Committee and also sit on the Remuneration Committee with George Canvin. Stephen brings a wealth of experience to the Company, having worked with many AIM listed companies and medium sized businesses. Management and staff We are a service business and dependant on the high standards of work ethic and efforts of all our management and staff. Without their dedication and commitment we would not be able to continue to develop and maintain such a high standard of service to our customers. I would like to record my and the Board's gratitude for their hard work. Dividend The Board, having considered the results for the year and the future for the business, recommends a final dividend of 0.25p producing a total dividend for the year of 0.40p (2006: 0.30p). An interim dividend was paid to shareholders of 0.15p per share. The final dividend subject to shareholders approval will be paid on 14 of July 2008 to those shareholders on the register on 23 June 2008. Outlook We continue to see tremendous opportunities for growth in all our markets in the current year. The ability to grow the business through working with our funding partners and managing assets on their behalf allows us to expand our fleet with little risk to our Balance Sheet. Building growth in EPS and profits is our focus. The wealth of experience of our management team allows us to look forward with confidence to the future of the Company's continuing growth. Robert J Montague CBE Executive Chairman 29 April 2008 Axis Intermodal plc FINANCIAL REVIEW Income Statement Year ended 31 December 2007 2006 £000 £000 Revenue 12,085 9,148 ------ ------ Profit before interest tax depreciation and 1,359 1,736 share based payment Net interest (96) (318) Depreciation (617) (817) ------ ------ Profit before tax and share based payment 646 601 Share based payment (87) (72) ------ ------ Profit before tax 559 529 Tax (60) (26) ------ ------ Profit after tax 499 503 Equity minority interests - (1) ------ ------ Retained profit 499 502 ------ ------ The above figures have been prepared in accordance with the International Financial Reporting Standards (IFRS's) as adopted by the European Union. Revenue in the Group has increased by 32% during the year reflecting the general growth in the Group's activities. Group overheads have increased in the year due to additional costs associated with expansion with interest cover (based on profit before interest, tax and share based payment) increasing to 6.83 times (2006: 2.9 times). Balance sheet At 31 December 2007 2006 £000 £000 Property, plant and equipment 3,289 2,564 Deferred tax asset 104 - Trade receivables 4,515 2,422 Cash and cash equivalents 359 1,417 Trade and other payables (1,702) (2,370) Debt - short term (1,133) (717) Long term debt and provisions (3,616) (1,869) ------- ------- Net assets before goodwill 1,816 1,447 Goodwill 3,519 3,519 ------- ------- Net assets 5,335 4,966 ------- ------- Gearing has increased to 43% from 14% arising from asset acquisitions and additional working capital requirements. Fleet numbers The fleet consisted of the following at 31 December 2007, compared with a year before. 2007 2006 Swapbodies 3,296 2,488 Trailers 797 295 Trucks 371 309 Total 4,464 3,092 Since the year end, more than 380 units have been added to the overall fleet and in conjunction with our KG partners orders are in place for a further substantial increase to the overall fleet. Foreign exchange The Group is exposed to fluctuations in the value of the Euro. Overseas trading results have been translated using a Euro exchange rate of 1.42. Share price and earnings per share The price of the Company's ordinary shares as quoted on AIM at the close of business on 31 December 2006 was 7.75p. Basic earnings per share for 2007 amounted to 0.85p (2006 restated: 0.85p). Axis Intermodal plc GROUP INCOME STATEMENT For the year ended 31 December 2007 Year ended Year ended 31 Dec 07 31 Dec 06 £000 £000 Revenue 12,085 9,148 Cost of sales (7,690) (5,757) ------- ------- Gross profit 4,395 3,391 Administrative expenses (3,740) (2,544) ------- ------- Profit from operations 655 847 Net interest payable (96) (318) ------- ------- Profit before tax 559 529 Tax on profit on ordinary activities (60) (26) ------- ------- Profit on ordinary activities after taxation 499 503 Equity minority interests - (1) ------- ------- Profit for the financial year 499 502 ------- ------- Basic and diluted earnings per share - pence 0.85 0.85 Axis Intermodal plc GROUP BALANCE SHEET As at 31 December 2007 2007 2006 £000 £000 Non-current assets Intangible assets 3,519 3,519 Property, plant and equipment 3,289 2,564 Deferred tax asset 104 - ------ ------ 6,912 6,083 ------ ------ Current assets Trade and other receivables 4,515 2,422 Cash and cash equivalents 359 1,417 ------ ------ 4,874 3,839 ------ ------ Total assets 11,786 9,922 ------ ------ Equity Share capital 2,943 2,943 Share premium 1,070 1,070 Share-based premium reserve 218 131 Other reserves 180 180 Translation reserves (79) (49) Retained earnings 1,003 691 ------ ------ Total Equity 5,335 4,966 Non-current liabilities Borrowings 748 - Customer deposits 255 284 Deferred tax liabilities 157 46 Obligations under finance leases 2,456 1,539 ------ ------ 3,616 1,869 ------ ------ Current liabilities Trade and other payables 1,636 2,206 Current tax liabilities 66 164 Obligations under finance leases 574 717 Bank overdrafts 559 - ------ ------ 2,835 3,087 Total Liabilities 6,451 4,956 ------ ------ Total Equity and Liabilities 11,786 9,922 ------ ------ Axis Intermodal plc GROUP CASH FLOW STATEMENT For year ended 31 December 2007 Year ended Year ended 31 Dec 07 31 Dec 06 £000 £000 Profit before taxation 559 529 ------ ------ Adjustments for: Depreciation 617 817 (Profit) on disposal of property, plant and (41) (258) equipment Interest expense 112 322 Interest income (16) (4) Share based payment 87 72 ------ ------ Operating cashflows before movement in working 1,318 1,478 capital ------ ------ (increase) in receivables (2,093) (1,021) Increase / (decrease) in payables (555) 806 ------ ------ Cash generated by operations before interest and (1,330) 1,263 taxation Interest paid (112) (322) Income taxes paid (161) (38) ------ ------ Net cash (outflow) / inflow from operating (1,603) 903 activities ------ ------ Investing activities Interest received 16 4 Proceeds in disposal of property, plant and 288 4,895 equipment Purchase of property, plant and equipment (509) (1,359) Acquisition of subsidiary - (25) ------ ------ Net cash from / (used in) investing activities (205) 3,515 ------ ------ Financing activities Dividends paid (187) (77) Other new loans raised 811 549 Repayments of other loans (2) (1,342) Repayments of bank loans (63) (811) Repayments of obligations under finance leases (402) (883) ------ ------ Net cash from / (used in) financing activities 157 (2,564) ------ ------ Net (decrease) / increase in cash and cash (1,651) 1,854 equivalents ------ ------ Cash and cash equivalents at beginning of year 1,417 445 ------ ------ Effect of foreign exchange rate changes 34 8 ------ ------ Cash and cash equivalents at end of year (200) 1,417 ------ ------ Axis Intermodal plc NOTES TO PRELIMINARY ANNOUNCEMENT 1. Publication of non-statutory accounts The financial information set out in this preliminary announcement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The summarised balance sheet at 31 December 2007 and the summarised profit and loss account, summarised cash flow statement and associated notes for the year then ended have been extracted from the Group's 2007 statutory financial statements upon which the auditors opinion is unqualified and does not include any statement under Section 237 of the Companies Act 1985. These financial statements have not yet been delivered to the registrar of companies. Basis of preparation The financial information has been prepared on the basis of the accounting policies set out in the Group's 2007 financial statements, and have been prepared in compliance with EU Adopted International Financial Reporting Standards (IFRS). 2. Subsidiary undertakings The subsidiary undertakings are owned directly by Axis Intermodal plc. All subsidiaries have been consolidated. Formed/ Nature of Holding acquired business Trailerent Limited 100% 5 Aug 2004 Contract hire Axis Intermodal GmbH (incorporated in Germany) 100% 6 Aug 2004 Contract hire Asset Care Transport Solutions Limited 100% 30 Sep 2004 Maintenance Irfin Limited 100% 3 Nov 2004 Contract hire Axis Intermodal (UK) Limited 100% 11 Jul 2005 Contract hire 3. Reconciliation of movements in shareholders' funds Share Share Share- Other Translation Retained Total capital premium based reserves reserve earnings payment reserve Group £000 £000 £000 £000 £000 £000 £000 At 1 January 2,943 1,070 59 180 - 266 4,518 2006 Net profit for - - - - - 503 503 the period Exchange - - - - (49) - (49) differences on translation of overseas operations Share options - - 72 - - - 72 expensed Dividends paid - - - - - (77) (77) Equity minority - - - - (1) (1) interests ---- ---- ---- ---- ---- ---- ---- Balance at 31 2,943 1,070 131 180 (49) 691 4,966 December 2006 ---- ---- ---- ---- ---- ---- ---- Net profit for - - - - - 499 499 the period Exchange - - - - (30) - (30) differences on translation of overseas operations Share options - - 87 - - - 87 expensed Dividends paid - - - - - (187) (187) ---- ---- ---- ---- ---- ---- ---- At 31 December 2,943 1,070 218 180 (79) 1,003 5,335 2007 ---- ---- ---- ---- ---- ---- ---- 4. Earnings per ordinary share The calculation of the basic earnings per ordinary share is based upon the profit attributable to ordinary shareholders divided by the weighted average number of ordinary shares in issue during the period. 5. Annual Report The annual report and financial statements will be posted to shareholders prior to 27 May 2007. Further copies will be available after that date from the Company Secretary, 15 Fenlock Court, Lower Road, Long Hanborough, Oxfordshire, OX29 8LN. 6. Annual General Meeting The 2008 Annual General Meeting of Axis Intermodal plc will be held at 15 Fenlock Court, Long Hanborough, Oxfordshire, OX29 8LN on Tuesday, 24 June 2008 at 11.00am. This information is provided by RNS The company news service from the London Stock Exchange

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