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)

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.

Up again this monring, admittedly on volume of only just over 1,000 shares!

AXE Bid: 80p Offer: 84p Change: 1

And the spread has narrowed! 4p much better than 7!

Hi ST, long time no chat. Just seen this thread, you have been lonely on here for the most part! Current SP now at previous high so may be some resistance, I would be looking for a fall back from here and may dip my toe in, certainly an encouraging story but highish PE in terms of immediate value. Have a good Bank Hols.

Hi Silvermede. Good to hear from you, and very nice to have you come and keep me company on this thread!

Yes, I agree that short-term this seems highly-valued. In the longer term, however, I think this could have the potential to go at least five- or maybe even ten-bagger, if Modec succeeds in producing its intended 2,000 vans per year and all of them contain an Axeon battery at 20K a pop.

And that's not counting the other products and applications, or other possible customers coming on board.

I wonder if the smart money is saying to itself that the current estimates of forthcoming trading are too conservative, however at the current trading volumes we are talking about only tiny quantities of smart money.

On the other hand, it may just be the dim money that doesn't know when to call it a day!

Happy to hang on to my small stake and watch. Will definitely consider adding if this appears to consolidate at an acceptable level or if I'm suddenly flush with ready cash.

Enjoy your weekend too.
ST

AXE Bid: 80p Offer: 87p Change: 2.5. Still only 7k traded. Mkt cap approx 22 mil.

Up approx 20% in the last few weeks. currently: AXE Bid: 88p Offer: 95p Change: 1

REcent RNS, 13th Jul:

Axeon Holdings Plc - Trading Update
RNS Number:1855A
Axeon Holdings Plc
13 July 2007


13 July 2007
Axeon Holdings plc ('AXE')

Trading Update

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.

The Modec electric urban delivery vehicle battery programme continues to go to
plan with production ramp-up of sodium nickel chloride battery packs and the
delivery of the first pre-production Li-ion battery pack. This event has
crystallised the first order for Li-ion battery packs worth 675,000 covering
the first two months of Li-ion battery pack production.

The Company has received an order from Veicoli to build a prototype Li-ion
battery pack for an electric taxi programme in Italy. This is Axeon's first
electric vehicle contract win in Europe and is the first tangible result of
investment this year in sales activity in Europe. The Company continues to see
rising sales opportunities in both the UK and Europe.

The Company has completed its battery management system development programme
with ITI-Energy. This programme, funded by ITI-Energy over the 2005-2007
period, has led to significant advances in the fundamentals of battery
management systems. Axeon and ITI-Energy have agreed an exploitation License
relating to certain aspects of the intellectual property developed under the
programme.

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

'The Modec electric urban delivery vehicle production is ramping up as planned.
This programme will be the backbone of revenue growth over the next eighteen
months. It is very encouraging to see some of the sales potential we have
identified in Europe being converted into real business.'

Recent RNS, 13th Jul, #2:

Axeon Holdings Plc - Acquisition of Ristma
RNS Number:1849A
Axeon Holdings Plc
13 July 2007


13 July 2007

AXEON HOLDINGS PLC
ACQUISITION OF RISTMA


Axeon Holdings Plc ('Axeon', the 'Company' or the 'Group'), a specialist
provider of advanced battery and battery management systems primarily to the
automotive industry, announces that the Company has conditionally agreed to
purchase Ristma A.G. ('Ristma'), a Swiss battery pack manufacturer, primarily
for the handheld cordless power tool market.

The Company has entered into a share purchase agreement to acquire the entire
issued share capital of Ristma for a cash consideration of CHF 12.5million
(approximately 5.11 million) payable at completion and a deferred consideration
of up to CHF 5.5million (approximately 2.25 million) to be satisfied by the
issue of ordinary shares. The Company also announced that it has conditionally
placed with institutional and other investors, 7,846,250 new ordinary shares at
64p per ordinary share to raise approximately 5 million (before expenses) for
the Company. As part of the foregoing, certain directors have agreed to invest,
in aggregate, a total of approximately 60,000 to subscribe for a total of
94,000 new ordinary shares in the placing.

Axeon and Ristma (the 'Enlarged Group') operate in complementary segments of the
battery pack market. Axeon operates in the electric vehicle (EV) and hybrid
electric vehicle (HEV) market, which is adopting Li-ion battery pack technology
as its technology of choice. Ristma manufactures battery packs principally for
the handheld cordless power tools market, which is also moving to Li-ion battery
technology. Axeon's proven experience and skills in the design and manufacture
of Li-ion battery packs, combined with Ristma's expertise in providing batteries
for handheld cordless power tools, will help drive sales of the Group as these
markets move to higher performance Li-ion technology.

Axeon is seeing increasing enquiries for its battery packs from automotive
customers in the UK and mainland Europe. The Directors believe that Ristma has
the infrastructure which Axeon needs to be able to accelerate sales of its EV
and HEV products in mainland Europe. Ristma's established manufacturing facility
in Poland is of particular importance to Axeon as the Directors believe that it
provides a good location and workforce to supply European automotive customers
with EV and HEV battery packs.


Commenting on the deal, Hamish Grant, Axeon CEO, said:

'Ristma provides an exciting opportunity for Axeon. Ristma has supplied battery
packs to blue chip companies such as Bosch and Hilti for over 15 years, and we
have a leading position in the provision of battery packs to Modec and the
broader EV and HEV markets.

The combination of Axeon's skills in the design and manufacture of large Li-ion
battery packs with Ristma's volume manufacturing skill in medium Li-ion battery
packs will accelerate our roll out into continental Europe.'

IMO the TU looks very encouraging, as orders from the Modec business are clearly gathering pace.

Not surprising that the SP is on the up.

PDYOR

Axeon Holdings Plc - Trading Update
RNS Number:7784D
Axeon Holdings Plc
13 September 2007


13 September 2007


AXEON HOLDINGS PLC

Significant electric vehicle Li-ion battery production orders


Axeon Holdings plc ('Axeon'), a specialist provider of advanced battery and
battery management systems primarily to the automotive industry with the aim of
reducing emissions, is pleased to announce new orders worth 2.5 million for
Li-ion battery packs and chargers for the Modec electric zero emission urban
delivery vehicle.

These new orders are in addition to previously announced orders from Modec worth
3.1 million for development engineering, sodium nickel chloride packs and
initial launch quantities of Li-ion battery packs. The total order book for
production Li-ion for Modec is now 172 battery packs and 172 chargers.

The testing and validation of the production level prototype Li-ion battery pack
is nearing completion and initial production ramp-up is expected to commence
during October. Deliveries of the initial orders for Li-ion battery packs and
chargers are scheduled to take place during Q4 2007 and into Q1 2008. Further
orders are expected before the end of 2007 to allow fulfillment of 2008
production.

The initial Li-ion battery is rated at 51.2KW-hr and provides a range of up to
70 miles on a single charge for the Modec electric zero emissions urban delivery
vehicle travelling at its top speed of 50 mph. During initial testing and
evaluation, the Li-ion battery pack delivered approximately 15% more miles per
KW-hr than the sodium nickel chloride battery pack. As previously announced,
Axeon and Modec are also developing a higher capacity pack expected to deliver a
range of around 100 miles on a single charge. This 100mile battery pack is being
developed for a start of production during the first half of 2008.


Commenting on the new orders Hamish Grant CEO of Axeon said:


'The completion of Li-ion battery pack development and start of production
ramp-up represents a major milestone in the evolution of Axeon. We believe this
is the largest Li-ion electric vehicle battery pack to enter volume production
anywhere in the world and are delighted to have delivered it on schedule to such
a prestigious project as the Modec electric zero emission urban delivery
vehicle'


Bill Gillespie CEO of Modec said:


'The Axeon team has worked extremely hard to meet our needs. In addition to
meeting our volume requirements, we believe that the Li-ion battery pack will
provide our customers with additional battery reliability and durability,
tailored to their specific range requirements, further enhancing what we believe
to be a very strong customer proposition.'

SP climbing towards highs, decent spread too:

AXE Bid: 87p Offer: 90p Change: 1

PDYOR, etc.

Just spotted you, ST - good to see you back ;)