Just a quick intro here - will try and post more info when I have a bit more time.

According to recent news AXE is in position to expect a large influx of business for its Li-On (environmentally friendly, low emissions vehicle battery technology. I won't waffle on right now, but rather let the recent Trading Update do the talking - see below.

IMO this could do well in 2007 and beyond, but PDYOR. Have bought today.





Axeon Holdings Plc - Trading Update
RNS Number:6416M
Axeon Holdings Plc
24 November 2006


24 November 2006
Axeon Holdings plc ('AXE')

SIGNIFICANT ORDER AND 2006 TRADING UPDATE

Axeon Holdings plc ('Axeon', 'the Group' or 'the Company') is pleased to
announce the first commercial order from Modec Limited ('Modec') worth around
1.3 million, the successful initial trials of its new Li-ion battery technology
and a trading update prior to the end of the financial year.


1.3 million Battery pack order

Axeon is pleased to announce that it has received an order worth 1.3 million
for the first 50 battery packs from Modec for the launch of their new zero
emissions urban delivery vehicle. This order follows on from the prior
announcement of Heads of Agreement where Modec selected Axeon as its exclusive
supplier of battery packs. As planned these initial packs will use sodium
nickel chloride cells with a small number delivered before the end of 2006 and
the balance delivered before the end of the first quarter of 2007.


Modec's production vehicle launch is planned for March 2007 and they have
indicated a production capacity of up to 700 vehicles during the first year.


Successful initial trials of Li-ion battery

Axeon has also been contracted by Modec to develop a Lithium-ion (Li-ion)
battery system solution. The Company can now announce the successful initial
trials of the Li-ion battery system with a Modec vehicle as planned. The
initial trials showed a range of 65 miles at a speed of 50 mph with a one tonne
vehicle payload against the requirement for a 50 mile range. Evaluation will
continue during the rest of 2006 with the system planned to be production ready
towards the end of the second quarter of 2007.


Li-ion battery chemistry provides approximately four times the energy density of
traditional lead acid batteries and approximately two times that of nickel metal
hydride based alternatives. This allows lighter, smaller batteries with
increased vehicle range and can now be supplied at price competitive levels.
The challenges have been to build a system that is durable and reliable for
automotive purposes. The application of Axeon's Vindax technology to the
battery management electronics has been an important enabling factor.


Trading Update

The 2006 Interim Results statement noted that some customers in the handheld
devices segment were forecasting reduced volumes during the second half of 2006
such that revenue growth would be slower than previously thought through
deferment of programmes into 2007. The Company also noted that while revenue was
growing rapidly, the rate of revenue growth in 2007 was dependent on a number of
factors including, significantly, the timing and rate of build up of Modec
production.


The board can now confirm that 2006 revenue will be lower than originally
anticipated and will be in the range of 2.8 - 3.0 million. This will still
represent a fourteen fold increase over 2005. Based on orders on hand and the
board's conservative estimate of customer orders expected in 2007, the board
believes that 2007 revenue will exceed twice that of 2006.


The board believes that the general concerns on climate change (illustrated for
instance by the recent Stern Report) are creating favourable economic and public
policy conditions for the more rapid adoption of electric vehicles (EVs), hybrid
electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEV's). These
vehicles have the potential to reduce automotive carbon dioxide emissions by
80%. The Company has a number of li-ion battery based development programmes
with vehicle manufacturers under evaluation that are expected to come to
fruition during 2007. Crucial to all these developments is the ability to
design and build large high voltage Li-ion battery packs that are durable enough
for automotive purposes. The board believes that the Vindax intellectual
property of Axeon Technologies provides a source of competitive advantage in
this area. With that in mind, the board is re-focusing the Axeon Technologies
division. Existing programmes with European manufacturers based around internal
combustion engine control and diagnostics will continue to be supported but new
programmes will focus on the expanding opportunity for Vindax based Li-ion
battery management electronics. Minor restructuring costs of around 85,000
will be incurred before the end of 2006 to enable this change.


During 2005 and 2006 Axeon has developed enabling Li-ion battery pack
electronics and demonstrated product capability for a range of battery voltages
and vehicle ranges. These include the Modec urban delivery vehicle, a light
utility vehicle, and an electric greens mower. The Board is evaluating how to
translate this success in the UK into the European and US market places.


Commenting on Announcement Hamish Grant, Chief Executive Officer of Axeon said:

'Receiving the first orders for production batteries from Modec is an important
milestone for the Company. The successful initial trials of the Li-ion
prototype battery is more significant as it demonstrates the working capability
of battery and battery management electronics developed over the last two years.


We believe this package of demonstrable capability positions us to take
advantage of the growing interest in electric, hybrid and plug-in hybrid
vehicles. The recent Stern report on climate change has illustrated the urgent
need to reduce automotive carbon dioxide emissions. We believe that
combinations of consumer pressure and Government actions will accelerate the
adoption of these solutions over the next few years. For instance studies in
Japan and the US have shown that plug-in hybrid electric vehicles can reduce
vehicle carbon dioxide emissions by 80%. Our Li-ion battery technology can in
the near term enable these vehicles to work and reduce the overall cost of
vehicle ownership compared to the equivalent petrol or diesel engine vehicle.


'Our products continue to prove that innovation can produce effective ways of
reducing automotive emissions and increase energy efficiency through the
deployment of advanced Vindax control and battery technology.'


Enquiries


Axeon Holdings plc www.axeon.com
Hamish Grant, CEO Tel: +44 (0) 1224 338383
David Campbell, CFO Tel: +44 (0) 1224 338383

Gavin Anderson & Company
Ken Cronin / Robert Speed Tel: +44 (0) 20 7554 1400


This information is provided by RNS
The company news service from the London Stock Exchange
END


For information about Modec:

http://www.modec.co.uk

Modec news article

New Electric Vans To Deliver Tesco Goods.


Tesco home shoppers can expect deliveries by a new concept electric vehicle van next year after the chain bought 15 of the environmentally friendly vehicles for its dot com service.

The vans do not emit CO2 and are powered by a battery that can cover over 100 miles on a single charge. UK manufacturer Modec, which will supply the vans, said it had interest from other food companies and delivery firms, particularly in London and the south east, because the vans don't need road tax or an MOT and are exempt from congestion charges as well as most parking restrictions.

"We've had hundreds of inquiries as people can see the benefits," said sales and marketing manager Geoff Reyner. "They can be refrigerated and with a top speed of 50mph, it's fast enough to make deliveries on time."

Tesco, which will start using the vans in the spring, said it would order more if trials proved successful. "They are very quiet - ideal for deliveries in residential areas," a spokeswoman said. (Autumn 2006)

Up this morning on good results and other news: AXE Bid: 55p Offer: 62p Change: 2

Axeon Holdings Plc - Final Results

RNS Number:7515T
Axeon Holdings Plc
27 March 2007


27 March 2007

Axeon Holdings plc ('AXE')

Preliminary Results for the year to
31 December 2006

CREATING VALUE THROUGH GREEN ENERGY SOLUTIONS


Axeon Holdings plc ('Axeon', or 'the Group'), a specialist provider of advanced
battery and battery management systems to the automotive and industrial markets
with the aim of reducing emissions, announces its results for the year to 31
December 2006.

Highlights

* 2006 revenue increased by 948% to 2,551,000

* 2006 loss after tax reduced by 27% to 864,000

* Acquisition of Advanced Batteries Limited (ABL) in March 2006 and placing
of 7.59 million shares to raise 4 million net of expenses

* Agreement in April 2006 to be exclusive supplier of battery packs and
charger systems to Modec Ltd for its electric urban delivery vehicles
followed by production orders and successful vehicle launch in March 2007

* Announcement today of programmes worth 1.15 million funded by the Energy
Savings Trust to develop next generation battery packs for an electric
version of the Daimler Chrysler SMART car and the Modec vehicle.


Hamish Grant, Chief Executive Officer of Axeon, said:

'2006 saw a period of material revenue growth coupled with increased investment
in R&D. The acquisition of ABL transformed the business to focus on delivery of
advanced battery and battery management systems for the rapidly expanding market
for electric (EV) and hybrid electric (HEV) vehicles. The Modec agreement sets
the foundations for further material growth over the next few years. We are
pleased that Modec have started production on schedule and that they have been
able to announce quality customers for their electric urban delivery vehicle
such as Tesco.'


All enquiries to:

Axeon Holdings plc
Hamish Grant CEO Tel: +44(0)1382 400040
David Campbell CFO Tel: +44(0)1382 400040

Gavin Anderson & Co
Ken Cronin / Robert Speed Tel: +44(0)20 7554 1400

Bell Lawrie
Ken Fleming Tel: +44 (0)141 221 7733


Chairman's Statement

I am pleased to present the preliminary results for the year to 31st December
2006. This second set of results since the company was quoted on AIM shows that
the business has made considerable progress from technology development to roll
out of products with initial customers.

Our advanced Lithium-ion (Li-ion) battery and proprietary Vindax technology
based battery management system (BMS) for EV and HEV applications are in high
demand. Of particular note is the Modec electric urban delivery vehicle
programme. Other programmes are following as illustrated today by the
announcement of the two programmes for the Energy Savings Trust.


Results

Turnover for the year to 31 December 2006 increased by 948% to 2,551,000 (2005:
243,000). Operating costs in the year increased to 2.7m (2005: 1.3m)
following the acquisition of ABL (since renamed Axeon Power). Of this
approximately 40% or 1 million (2005: 571,000) was invested in research and
development. At the same time as increasing investment in research and
development the post tax operating loss for the year has been reduced to
864,000 (2005: 1,183,000).


2006 Trading


Small and Medium Batteries

This segment covers devices for handheld and mobility products below 50Volts and
contributed 49% of turnover during 2006. There was some slow down in revenue
growth from this segment during the second half of 2006 as existing customer
product lines finished and new product launches were delayed into 2007.


Large Batteries

This segment covers devices for mobility products of 50Volts and above including
EV's and HEV's. The segment saw rapid progress of both product development and
customer opportunities.

Axeon has delivered 50V Li-ion solutions in two light utility EV's and two golf
course greens mower products. These prototypes are now under pre production
customer evaluation.

During the second half of the year we completed and demonstrated a 300V proof of
concept Li-ion battery pack for Modec. This followed a heads of agreement in
April making Axeon the exclusive supplier of battery packs and chargers for
Modec's electric urban delivery vehicle. In November we were able to announce
the first production purchase order under the agreement, worth 1.3 million
covering an initial supply of 50 battery packs. These packs utilise Sodium
Nickel Chloride technology. The Li-ion technology is planned to offer an
alternative to the Sodium Nickel Chloride technology in the second half of 2007.


Research and Development

The focus of research and development during the year was to continue the
implementation of Vindax in advanced Li-ion battery management systems and the
development of customer prototype and production battery packs. R&D investment
increased to approximately 1 million (2005: 571,000) for the year. We were
delighted to get patent approval during June in the US for the core Vindax
technology. This builds upon the approval we received in Europe during 2005 and
provides protection for our core technology in our major markets. During 2006
we also demonstrated a working BMS for EVs and laid the foundations for battery
management systems for HEVs and plug-in hybrids (PHEVs).


Management and Staff

On the acquisition of ABL, Mr. John Blinkhorne joined the board as an executive
director. At the AGM in June 2006 Mr. Martin Briant-Evans retired from the
board of Axeon and Mr. James Kenny joined as a non-executive director. The
acquisition of ABL increased the size of the team with a headcount at the end of
the year of 42.


2007 Trading Update

Since the end of 2006 a number of significant events have occurred:


* In January the Group won its first contract to develop a Li-ion battery
pack for a hybrid electric vehicle. The contract is for the development of
a 2kWh Li-ion battery pack for a major European heavy duty vehicle
machinery manufacturer to be delivered during the early part of Q2 for
customer evaluation and demonstration.

* In February the Group received an order worth 300,000 for the design and
supply of an initial production quantity of rechargeable battery packs for
a bath lift disability product. The product demonstrates that the new
generation of powerful, reliable, light, Li-ion cell technology is enabling
new products and new markets. It also demonstrates progress in the small
and medium battery business.

* We are pleased that Modec have started production on schedule in March and
that they have been able to announce quality customers for their electric
urban delivery vehicle such as Tesco, Accord, Hildon Water, Speedyhire and
local authorities. Modec have advised that they have over 140 firm orders
with a very strong pipeline of conditional orders and prospective
customers. The 100 mile range, 50 mph, 2 tonne payload electric delivery
vehicle is demonstrating the emissions free urban delivery is both
environmentally and economically beneficial. We are delivering battery
packs to Modec's production plan and scaling up our capability to meet
their demand.

* As announced today a programme valued at 1.15 million over two years
funded by the Energy Savings Trust to develop next generation battery packs
for an electric version of the Daimler Chrysler SMART car and the Modec
vehicle. These programmes will allow us to continue investment in battery
pack R&D and also demonstrate capability for the SMART car EV programme and
extended durability for the Modec urban delivery vehicle.


Strategy and Outlook

The recent Stern report on climate change has illustrated the urgent need to
reduce automotive carbon dioxide emissions. An 80% reduction in automotive
emissions translates to a 9% reduction in global annual CO2 emissions. Studies
in Japan and the US have shown that plug-in hybrid electric vehicles can reduce
carbon dioxide emissions by the target 80%. Our advanced Li-ion battery
technology can in the near term enable these vehicles to work in a practical
cost effective manner. While the initial vehicle cost will rise, this will be
offset by reduced fuel costs within three to five years.

We are already witnessing the first implementations for electric vehicles in
niche urban markets (such as Modec) and hybrid electric vehicles for the volume
vehicle market. Over the next ten years as the technology is proven we believe
that the volume vehicle market will move to plug-in hybrids.

The strategy of our business to take advantage of these trends is:

* Continued focus on our Vindax based battery management system to build
on our advantage in advanced Li-ion battery electronics;

* To maintain the small and medium battery pack business to generate
continuing revenue and positive cash flow;

* To develop the large battery pack business of to:

- deliver volume production of the Li-ion battery packs for Modec;

- build on the current opportunities in the electric and hybrid
electric space to expand production programmes;

- Develop plug-in hybrid expertise with selected partners; and

- Supply generic battery management systems to volume vehicle
manufacturers;

* To expand the geographic reach of the business into Europe and then the US.

I believe that having strengthened the balance sheet and enlarged the Group with
the acquisition of ABL that the Company is positioned to continue to deliver
significant growth in turnover and gross profit during the course of 2007. The
rate of roll out of the Modec electric urban delivery vehicle will have a
significant impact on the rate of build up of revenue during 2007 and 2008. We
are excited about the quality and potential of this programme and look forward
to securing and announcing additional programmes in the coming months.


Charles Matthews
Chairman

Axeon Holdings Plc - Electric Vehicle Programmes

RNS Number:7589T
Axeon Holdings Plc
27 March 2007


Axeon Holdings plc ('AXE')
Electric City Car and Urban Delivery Vehicle Programmes
CREATING VALUE THROUGH GREEN ENERGY SOLUTIONS


Axeon Holdings plc ('Axeon', or 'the Group'), the specialist provider of
advanced battery and battery management systems to the automotive and industrial
markets with the aim of reducing emissions, announces today two electric vehicle
programmes valued at 1.15 million.

The programmes are funded by the Energy Savings Trust and are to develop and
implement next generation Lithium-ion based battery packs for an electric
version of the Daimler Chrysler SMART car, and a long range pack for the Modec
Ltd urban delivery vehicle. The programmes will start immediately and run in
parallel for the next two years. The programme is worth up to 470,000 to Axeon
over the two year period depending on the achievement of certain milestones.

The aim of the work is to demonstrate the successful implementation of Li-ion
phosphate cell chemistry. This type of battery chemistry is cheaper, inherently
safer and offers a more than three fold increase in battery life compared to
current Li-ion cell chemistry. This promises to significantly reduce the cost
of ownership of an electric vehicle compared to a petrol or diesel engine
vehicle.

The SMART car will be fitted with a 22kWh energy battery, delivering peak power
of 40kW, enabling a range of around 150km, a top speed of 120kmh and
acceleration of 0 - 80kmh in 12 seconds.

The long range Modec urban delivery vehicle will be fitted with a 60kWh energy
battery, delivering peak power of 80kW extending the battery range from 100km to
250km and giving 0 - 80kmh acceleration in 18 seconds.

Hamish Grant, Axeon CEO commented, 'The award of these programmes demonstrates
our commitment to staying at the front of battery pack technology and the
confidence of our customers that we can design, develop and manufacture large
complex automotive class products.

'While others talk about the need to reduce automotive emissions we and our
customers are demonstrating that it is possible to make zero emissions vehicles
that are practical, fun to drive and economically attractive when compared to
petrol or diesel engine vehicles.'

Axeon FY pretax loss narrows on 948 pct sales jump, sees 'significant' 07 growth
LONDON (AFX) - Axeon Holdings PLC posted a marginally narrower full-year pretax loss on a 948 pct sales jump, and said it is positioned to continue to deliver 'significant' turnover and profit growth during 2007.

It also said it has won a contract worth up to 470,000 stg as part of a 1.15 mln stg programme to supply batteries for an electric version of the Daimler Chrysler SMART Car and a new vehicle by Modec Ltd.

Axeon, which bought Advanced Batteries Ltd in March 2006, reported a pretax loss of 1.06 mln stg for the year ended Dec 31 compared with a loss of 1.33 mln stg a year earlier, as sales rose to 2.55 mln stg from 243,324 stg.

Encouraging results, good newsflow and plenty of good prospects for the future mean that I'm happy to be in this one for the time being. The company has a good cash position too.

Mkt cap is equivalent to approx 4 times NAV, so I wouldn't want to pay too much more than the current SP of 62p for the shares, but anyone who does is buying a growth story with what appear to me to be decent prospects.

All IMHO, PDYOR, etc.

PS it should be noted that AXE's current main customer, Modec, has big plans for increasing its output of vehicles, having launched its electric vehicles only recently. So the potential is there for AXE to see more significant upturns in revenue over the current year.

News release from the Modec site, from last month:

Modec starts production of zero emission LCV

Pioneering zero emission vehicle manufacturer Modec officially opened its factory doors yesterday (8th March) with The Rt. Hon. David Cameron MP joining customers, suppliers and staff to launch its new production plant based in Binley, Coventry.

The battery powered Modec vehicle provides the worlds first high performance, emission free alternative to traditional diesel delivery fleets and has been heralded as the future of urban commercial transport. Quiet, efficient and with the added advantage of zero tax and zero congestion charge, the vehicle has already attracted orders from Tesco, Hildon Water, Islington Borough Council and dozens of other organisations keen to improve their fleet environmental credentials. Around 500 Modec vehicles are expected to be produced in the first year.

EDIT: The Axeon batteries cost 20,000 each and are provided to the purchasers of the vehicles on a rental basis. 500 batteries would mean a turnover of 10 million for AXE. (comparison: AXE sold its first lot of 50 batteries for 1.3 million, or 26,000 each).


full article available at: http://www.modec.co.uk/new5.html

Axe probably need to do about 10 mil of turnover in order to start making a profit. Gross profit margins seem decent, though, at around 64%.

EDIT (17May2006) Based on figures published this week, it looks as if 5 million turnover will suffice to see the co make a small initial profit. See below.

RNS out today:

Axeon Holdings Plc - Trading Update/AGM Statement

RNS Number:5700W
Axeon Holdings Plc
15 May 2007


Axeon Holdings plc ('AXE')

Trading Update and AGM on 15th May

CREATING VALUE THROUGH GREEN ENERGY SOLUTIONS


Axeon Holdings plc ('Axeon', or 'the Company'), a specialist provider of
advanced battery and battery management systems to the automotive and industrial
markets with the aim of reducing emissions, is pleased to provide a trading
update, prior to its AGM today.


The Company has traded in line with the Board expectations for the first four
months of the financial year. The Board's full year revenue expectations have
increased in line with more visible progress for battery packs for the Modec
electric urban delivery vehicle. Modec have advised that their order book has
increased to over 160 units and the Board now believe that production will
increase from 155 to 175 units in 2007.


The iconic 100mile range electric urban delivery vehicle is being very well
received in the market place and on the 17th May Axeon and Modec will be
demonstrating the vehicle in the City of London to shareholders and other
interested parties.


The Company is pleased to note that Deutz AG successfully demonstrated its
diesel hybrid electric powertrain in an Atlas wheel loader at the Bauma trade
fair in Germany at the end of April. The powerpack for this vehicle included a
prototype battery pack designed and delivered by Axeon within a twelve week
period. This demonstrated Axeon's ability to supply hybrid electric vehicle
Lithium-ion battery packs and within very tight customer timescales.


The Company is seeing increasing enquiries for electric and hybrid electric
vehicle Lithium-ion battery packs from within the UK and elsewhere in Europe.
In response to this potential demand the company is increasing investment though
employment of more people in its sales and engineering teams.


Commenting on the update the Chairman of Axeon Holdings plc, Charles Matthews
said:


'The Modec electric urban delivery vehicle production is ramping up. We
understand that Modec have a plan to make around 300 vehicles this year. By the
end of June we anticipate having delivered on schedule around 60 battery units
and have the capacity to deliver to their plan. The difference between their
plan of 300 units and our increased expectation of 175 units reflects
uncertainty over how quickly overall vehicle production can be increased. We
will update the market again as progress is made through the year'

Up again today: AXE Bid: 61p Offer: 67p Change: 2.5

Slow progress is better than no progress. 194K traded

AXE Bid: 63p Offer: 70p Change: 2.5 14K traded.

The company looks to be in good shape for the coming year. T/O could be around 5 million, based on figures given by the company for its various contracts and trials (including estimated 175 orders from Modec). T/O of 5 mil could be enough to see the co break even.

Creditors are more or less covered by debtors, net cash then results to about 1.5 million. On an alternative view, the co has enough cash to see it through almost one more years of the same net losses if one looks at the cashflow rec. The increasing orders from Modec, plus trials from other potential customers, however, indicate that Axeon won't have to burn all of this money simply in order to stand still.

All IMO, PDYOR, etc.

Up again: AXE Bid: 67p Offer: 73p Change: 3.5, still on piddly volume.

Somebod ought to tell the MM's that that spread is no joke . . . .

But that didn't prevent a stunning rise at the close: AXE Bid: 73p Offer: 80p Change: 10

Here are the broker estimates for Axeon:

Detailed Broker Forecasts
2007 2008
Broker Date Rec Pre-tax (?) EPS(p) DPS(p) Pre-tax(?) EPS(p) DPS(p)
Bell Lawrie Whit... 27-03-07 BUY -0.42 -1.77 1.16 4.96
Dawnay Day Capit... [R] 09-02-07 BUY 0.91 1.97 2.09 4.51

That"s estimates of EPS for 2007 of -1.77p from BLW, and +1.97p from DDC.

For 2008: BLW 4.96p, DDC 4.51p

Taking the average to be roughly 4.75p, the share is on a forward PE of 16.8 for 2008.

approx 57% of the stock is accounted for by major shareholders.

EDIT: this week's price action on very low volume suggests that the stock is not particuarly liquid.

Major Shareholders Shares in issue: 24.6m 5p Ords
Name Amount % Holding
AXA Investment Managers UK Ltd 3,044,472 12.38
4th Level Ventures 2,375,977 9.66
Hamish Grant 1,985,021 8.07
Hamish Alexander Francis 1,985,021 8.07
Aberdeen Asset Mgmt 1,973,976 8.03
Scottish Enterprises 1,785,711 7.26
John Boyle 858,775 3.49

Other Directors
Name Amount % Holding
Paul Johnston 77,534 0.315
Charles L Matthews 17,241 0.070
David Campbell 17,241 0.070
Lawrence Berns 8,623 0.035
= Director

IMO the broker estimating losses for the current year could prove to be too conservative, as my feeling is that around 0.4 - 0.5 million profits should be possible on estimated turnover for the current year, which would reflect that 1.97p EPS given by Dawnay Day and putting the share on a PE of 40.6 for the current year.

If AXE wins and fulfils more orders in 2007 than currently estimated then it should be good for some nice surprises.

Potential buyers may want to wait for a retrace, however.

From the trading update of Nov 2006:

Based on orders on hand and the board's conservative estimate of customer orders expected in 2007, the board believes that 2007 revenue will exceed twice that of 2006.

That takes care of that 5 million needed to break even, hopefully!

PDYOR.

RNS out yesterday:

Saracen Growth Fund announces major shareholding (which somehow avoided being mentioned on the list of major shareholders I posted a few days ago - and Saracen certainly did not buy 2 million shares over the market this week!):

Total (A+B)
Number of voting rights % of voting rights

2,625,862 10.68%



I assume that means they bought some, rather than selling!

Up 2p today, thin volume as ever.

AXE Bid: 77p Offer: 84p Change: 2

I'm pleasantly surprised that the rally still seems to have legs.