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:

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