Final Results

Intermodal Resource Plc 24 February 2005 INTERMODAL RESOURCE PLC ('Intermodal' or 'the group') Maiden Preliminary Results for the Period Ended 31 December 2004 Intermodal, which joined AIM in August 2004, provides transport equipment for rental. The Group comprises two divisions, Axis Intermodal and Trailerent, and operates principally in Germany and the UK. Axis specialises in the provision of swapbodies, (a type of steel freight container with legs) and container-carrying road chassis. Trailerent provides road trailers for rental. Key Points: • Admitted to AIM in August 2004 • Turnover* for the year ended 31 December 2004 up 10% to £2.36m (2003: £2.15m) • Profit* before exceptional items and amortisation up 17% to £0.32m (2003: £0.27m) • Strengthened balance sheet with net assets improving by £4,480,000. • Axis Intermodal - swapbodies and chassis rental business, based in Germany • Good performance with sales increased by 7% • Utilisation increased to 89% at 31 December 2004 from 82% in January 2004 • Long term contracts now represent 70% of revenues • Swapbody refurbishment and conversion programme will increase operating returns • Trailerent - road trailer business, based in UK • Commenced operations in April 2004 • Substantial pipeline of quotations now established • Prospects remain encouraging * As a result of Intermodal Resource plc acquiring Trailerent and Axis Intermodal shortly before flotation and in order that an annualised comparison of results can be made, consolidated accounts for the group for the years ended 31 December 2003 and 2004 have been provided. These reflect the results for the Group as if it had been trading in its current form since 1 January 2003. Robert Montague, Chief Executive Officer, commented, 'I am pleased with the progress the group has made over the year. Our road trailer business, which commenced operations in April 2004, has performed to expectations and we are very encouraged by the pipeline of quotations. Axis, our swapbodies and chassis business, continues to improve. We see growth opportunities both in the UK and Europe and our objective remains to expand in a low risk manner, minimising our residual value exposure while generating 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 Katie Tzouliadis INTERMODAL RESOURCE PLC JOINT STATEMENT OF THE CHAIRMAN AND THE CHIEF EXECUTIVE OFFICER We are pleased to report a period of good progress in the group. The listing of Intermodal Resource on AIM in August 2004 brought a number of benefits to the group. Most significantly, the move underpinned the establishment of Trailerent, our road trailer rental business in the UK, so expanding both the scope of our activities and our geographical coverage. At the same time, it has raised our corporate profile both amongst our client base and within the logistics industry. The group's statutory profit and loss account shows the results of the group for the five month period from acquisition of its operating subsidiaries to 31 December 2004. This period showed an operating profit of £79,000 on turnover of £1,086,000. However, the group's performance can best be appreciated by looking at the 12 months to the end of 2004 when the companies which are now within the Intermodal Resource group achieved a combined profit before exceptional items and amortisation of £315,000 on a turnover of £2,361,000. Our continued objective is to build our rental business in the UK and Europe in a low risk manner, generating strong cash flows and minimising our residual value exposure. This approach differs significantly from traditional business models in this industry. Review of Operations Axis Intermodal Axis, our German subsidiary, had a successful year in 2004. During the year sales increased by 7% and utilisation rose from 82% in January 2004 to 89% on a comparable basis at the end of December 2004 when the fleet stood at 2,297 swapbodies and 133 chassis. These figures are the result of a high level of demand in the market and Axis managing that demand profitably. We have concentrated on securing long term contracts from one to three years in length and these now represent some 70% of revenues. Renewal of existing contracts is also high and currently stands in excess of 90%. Whilst we did not increase the overall size of the fleet during the period we disposed of some older chassis, replacing them with 20 new Schmitz chassis. We have also benefited from the programme of refurbishing our older swapbodies and lengthening units wherever possible from 7.15m to 7.45m, which is the favoured length of our clients. During 2005, we expect to convert a further 300 units from our existing fleet. When the refurbishment programme is completed we will expand the fleet in line with clearly identified client demand. The majority of units acquired will be second hand offering the scope to convert and refurbish according to individual client requirements, enabling Axis to expand its fleet economically and consequently to deliver higher returns. We will however purchase new equipment where required to meet the specific long term requirements of our clients. We are confident of further growth in Axis, generated by our enhanced profile and improving trading conditions. In addition, the newly introduced road toll system in Germany, the 'MAUT', should help to underpin customer demand. The MAUT has been introduced to encourage further use of rail and barge transport facilities in Germany as well as to raise funds for transport investment. Trailerent Trailerent, our new business activity in the UK, offers for rental road trailers which are supplied principally by Schmitz Cargobull AG with whom we have formed a close working partnership. Trailerent has performed according to our expectations since formation and furthermore our experienced team of sales executives have established a substantial pipeline of quotations. There are currently approximately 190,000 trailers operated by UK based companies and some 16,000 of these are replaced every year. Approximately 30% of all UK trailers are rented and therefore there is ample opportunity for Trailerent to achieve its targets for the current year. We intend to focus on reliable term contracts of typically between one and five years duration. In addition to the supply of trailer equipment, a key priority for Trailerent is the support of the client's maintenance requirements. Therefore, we have reached agreement in principle to acquire a 51% holding in a new company, Assetcare Maintenance Solutions Limited which will manage all our maintenance, roadside repair service and tyre management. This partnership will also drive our move into offering both satellite location management and web access for our clients. Outlook Future prospects for the group are encouraging and we enter 2005 with confidence and opportunities to expand the business. We have products and services which we believe are attractive to customers in both the UK and mainland Europe. Axis is well established and in a position to continue to improve its trading; Trailerent has both the organisation and enquiries to grow further during the current year. We are confident that we can achieve our targets for 2005. Christopher Rogers Chairman Robert J Montague CBE Chief Executive Officer 23 February 2005 INTERMODAL RESOURCE PLC FINANCIAL REVIEW Since the group was only formed in August 2004 the profit and loss account only shows the results for a 5 month period. In order that an annualised comparison of results and a comparison of financial position can be made, financial information for the group for the years ended 31 December 2003 and 2004 is shown below. The figures for 2003 have been sourced from the Admission document. Profit and loss account (unaudited proforma) Year ended 31 December 2004 2003 £000 £000 Turnover 2,361 2,154 ------------------------ ------------ ------------- Earnings before interest, tax, depreciation and 963 941 amortisation Net interest (208) (231) Depreciation (429) (417) Loss on sale of fixed assets (11) (24) ----------------------- ------------ ------------- Profit before exceptionals and amortisation 315 269 Exceptional items 358 1,261 Amortisation (28) - ----------------------- ------------ ------------- Profit before tax 645 1,530 Tax written back (provided) 233 (233) ----------------------- ------------ ------------- Retained earnings 878 1,297 ----------------------- ------------ ------------- Trading analysis Group turnover on a comparable basis increased by 9.6% to £2,361,000 with Trailerent, the UK start up, contributing £51,000. During 2004 group overheads increased principally due to the commencement of Trailerent and the additional overhead incurred in being a public company. Interest cover has improved marginally year on year. An exceptional gain of £358,000 (2003: £1,261,000) was generated as a result of the group taking advantage of the opportunity to purchase a tranche of the group's existing debt from certain finance providers at a substantial discount. This purchase has helped to strengthen our balance sheet reducing our debt position and the cost of finance. We do not anticipate any further such opportunities. A tax charge in Axis did not arise in 2004 as a result of losses brought forward, some of which remain available to be used in 2005. In the UK taxable profits are not anticipated until 2006. Balance sheet Year ended 31 December Audited Unaudited 2004 2003 £000 £000 Fixed assets 4,232 4,760 Debtors 208 129 Cash 6 122 Creditors and accruals (761) (1,343) Debt - short term (1,206) (1,249) Debt - long term (1,645) (4,738) ------------------------ ------------ ----------- 834 (2,319) Goodwill 1,327 - ------------------------ ------------ ----------- Net Assets/ (Liabilities) 2,161 (2,319) ------------------------ ------------ ----------- Balance sheet The balance sheet has improved substantially during 2004, as a result of the conversion of shareholder loan accounts, funds raised on listing and debt repurchase; the overall effect being a positive movement in net assets of £4,480,000 to £2,161,000. Bank debt, loans and amounts due under finance leases were reduced from £5,987,000 to £2,851,000 at 31 December 2004 resulting in a gearing ratio of 132%. INTERMODAL RESOURCE PLC GROUP PROFIT AND LOSS ACCOUNT For the period ended 31 December 2004 £000 Turnover 1,086 Cost of sales 512 -------------------------- ------------- Gross profit 574 Administrative expenses 495 -------------------------- ------------- Operating profit 79 Net interest payable (79) -------------------------- ------------- Retained profit for the period - -------------------------- ------------- Basic earnings per share - Diluted earnings per share - GROUP BALANCE SHEET As at 31 December 2004 £000 Fixed assets Intangible assets 1,327 Tangible assets 4,232 -------------------------- ------------- 5,559 Current assets Debtors 208 Cash at bank and in hand 6 -------------------------- ------------- 214 Creditors - amounts falling due within one year 1,967 -------------------------- ------------- Net current liabilities (1,753) Total assets less current liabilities 3,806 Creditors - amounts falling due after more than one year 1,645 -------------------------- ------------- 2,161 -------------------------- ------------- Capital and reserves Called up share capital 2,038 Share premium account 123 Profit and loss account - -------------------------- ------------- 2,161 -------------------------- ------------- INTERMODAL RESOURCE PLC GROUP CASH FLOW STATEMENT For the period ended 31 December 2004 £000 Net cash inflow from operating activities 429 --------------------------- ------------ Returns on investments and servicing of finance Interest received 1 Interest paid (41) Finance lease interest paid (39) --------------------------- ------------ Net cash outflow from investments and servicing of finance (79) --------------------------- ------------ Capital expenditure Purchase of tangible fixed assets (115) Sale of tangible fixed assets 197 --------------------------- ------------ Net cash inflow from capital expenditure 82 --------------------------- ------------ Acquisitions and disposals Net overdrafts acquired with subsidiary undertakings (358) --------------------------- ------------ Cash inflow before financing 74 --------------------------- ------------ Financing Issue of shares 520 Expenses relating to issue of shares (724) Long term loan finance 55 Repayment of long term finance (69) Capital element of finance leases (208) --------------------------- ------------ Net cash outflow from financing (426) --------------------------- ------------ Decrease in cash (352) --------------------------- ------------ INTERMODAL RESOURCE PLC NOTES 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 2004 and the summarised profit and loss account, summarised cash flow statement and associated notes for the period then ended have been extracted from the Group's 2004 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. 2. Subsidiary undertakings Acquired Date acquired Nature of business ---------------- --------- ----------- -------------- Trailerent Limited 100% 5 August 2004 Trailer and chassis rental Axis Intermodal GmbH Swapbody and (incorporated in Germany) 100% 6 August 2004 chassis rental Trailerent Limited was purchased for a consideration of £1. Its net liabilities on 5 August 2004 were £107. Axis Intermodal GmbH was acquired as a consequence of the acquisition of its parent company Axis Intermodal Holdings BV together with its other wholly owned subsidiary Axis Intermodal BV. On 30 December 2004 the board made the appropriate declaration to liquidate Axis Intermodal Holdings BV and Axis Intermodal BV and as a result thereof the assets were transferred to Intermodal Resource plc. The group has used acquisition accounting to account for the purchases of both subsidiary undertakings. Book and fair value of separable net assets acquired £000 -------------------------------- --------------- Tangible fixed assets 4,503 Debtors 378 Bank overdraft (358) Creditors (798) Loans and finance leases (2,715) -------------------------------- --------------- Net assets at date of acquisition 1,010 Goodwill arising 1,355 -------------------------------- --------------- Consideration 2,365 -------------------------------- --------------- Satisfied by: Share for share exchange and loan conversions 2,365 -------------------------------- --------------- 2,365 -------------------------------- --------------- No adjustments to book values were considered necessary in arriving at fair values. 3. Reconciliation of movement in shareholders' funds ----------------- -------- --------- ---------- -------- Share Share premium Profit and Total capital loss accounts ----------------- -------- --------- ---------- -------- £000 £000 £000 £000 Issued on share for share exchange 287 286 - 573 Issued pursuant to convertible loan agreements 1,361 431 - 1,792 Issued as settlement of 130 130 - 260 AIM Listing expenses Shares placed at AIM Listing 260 260 - 520 Costs of issuing shares - (984) - (984) Retained profit for the - - - - period ----------------- -------- --------- ---------- -------- 2,038 123 - 2,161 ----------------- -------- --------- ---------- -------- 4. Net cash inflow from operating activities £000 ---------------------- ------------------------- Operating profit for the period 79 Depreciation 178 Amortisation of goodwill 28 Loss on sale of tangible fixed assets 11 Decrease in debtors 170 Decrease in creditors (37) ---------------------- ------------------------- 429 ---------------------- ------------------------- 5. Reconciliation of net cash flow to movement in net debt £000 -------------------------------- --------------- Decrease in cash for period (352) Net cash inflow from other loans (55) Repayment of bank loan 69 Cash outflow from finance leases 208 -------------------------------- --------------- Change in net debt from cash flows (130) Finance leases acquired with subsidiary undertaking (1,289) Loans acquired with subsidiary undertaking (1,426) -------------------------------- --------------- Movement in net debt in the period (2,845) -------------------------------- --------------- Net debt at 31 December 2004 (2,845) -------------------------------- --------------- 6. Annual Report The annual report and financial statements will be posted to shareholders on Friday, 25 February 2005. Further copies will be available after that date from the Company Secretary, 8 Fenlock Court, Lower Road, Long Hanborough, Oxfordshire, OX29 8LN 7. Annual General Meeting The Annual General Meeting of Intermodal Resource plc will be held at 1 Westminster Way, Oxford OX2 0PZ on Friday, 22 April 2005 at 10.30am. This information is provided by RNS The company news service from the London Stock Exchange EN FR PKNKBNBKBKBB

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