will it ever recover to the 38p i paid for them??

margin squeeze in announcement BUT THEY HAVE A SECOND CONFIRMED ORDER FROM VIRGIN. company now VIABLE. mid teens in a month.

AeroBox plc
25 August 2005


AeroBox plc

New Contract

Following the successful delivery of 250 containers in late 2004, AeroBox
Composite Structures, LLC has now signed a contract with Virgin Atlantic Airways
Limited for an additional 250 containers. The sale is composed of 100 units at
the standard weight of 83 kilos for immediate delivery. The remaining 150 units
weighing approximately 79 kilos are scheduled for delivery in the fourth quarter
of this year.

Charles Edwards, President of AeroBox Composite Structures, LLC said: 'There is
no higher recommendation than to receive a follow-on order and this is our first
repeat customer order to date. Virgin Atlantic was the initial airline that
trialed AeroBox containers in 2003 and clearly like what they see. However,
intense competition from aluminium box manufacturers means that the sales
margins on new orders are unlikely to be as satisfactory as had been previously
projected.'

Enquiries:

David Sebire, Chairman, AeroBox plc +44 1454 310066
Ray Gibbs, Finance Director, AeroBox plc +44 207 929 5599
Trevor Phillips, Holborn +44 207 929 5599
Jonathan Wright, Seymour Pierce +44 207 107 8000

Notes to Editors

The Aerobox air cargo container is the result of a decade of research and
development into composite structure panels. The strength and thermal resistance
of the AeroplazTM thermoplastic composite panels enables Aerobox to develop
custom made solutions for a wide range of applications in the aviation,
automotive and other industries. The unique construction of AeroplazTM provides
for improved strength and durability that can reduce costly repairs by over 90%
as well as improving reliability, utilisation and safety. The Aerobox has now
flown over 50,000 flights in commercial airlines around the globe.




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

Profits only marginal.........


LONDON (AFX) - AeroBox PLC said intense competition from aluminium box manufacturers means that the sales margins on new orders are unlikely to be as satisfactory as had been previously projected.

At the same time, the company announced that AeroBox Composite Structures has received a follow-on order for another 250 containers from Virgin Atlantic Airways.

100 will be delivered immediately, while the remainder are scheduled for delivery in the fourth quarter.

cml

COPYRIGHT

Copyright AFX News Limited 2005. All rights reserved.

The copying, republication or redistribution of AFX News content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

AFX News and the AFX Financial News logo are registered trademarks of AFX News Limited

Repeat order to Virgin much more significant than squeezed margins. When Aerobox becomes standard kit there will be no more aluminium boxes to offer competition. Market share and more orders is the key thing for now.

Now it's starting to trade, it will be easier to put a value on the company. The easier it is to value something, the more certain of its value you can be. The more certain you can be of a value, the higher you are prepared to state it. QED.

Great news!

sd

i think these progressively rise over the next few weeks to settle closer to 20.

rgds
PT

love your optimism, can't wait for the Chinese JV to be announced (some day my plintz will come - tra la la!)

After Fridays news this looks a screaming buy. Why certain people on ADVFN have to deramp without factual information is however beyond me ! It is really pathetic as this company has now turned the corner and is ready to shine.

couldnt agree more moneyman, have given up on the arx thread on advfn. think its a case of all the kids are still off for summer!

ADVFN? what do they know about ARX! facts are in...one order from American and a repeat order from Virgin. Guys...this company is now VIABLE and probably worth a hell of a lot more than the current price. One more deal or a Cinese JV and these are straight backj to the 20's.

Had the American + V irgin order not come in the downside was zero. now we have limited downside. HUGE difference, your punting cash is now a bona fide investment!

rgds
PT

How many boxes do they need to sell to break even?

Taking last year's goodwill write-down and overheads and purely guessing that cost of sales is 50% we have in Sterling
Turnover required 7,656,000 (2004 172,000)
Cost of sales 50% 3,828,000 (2004 320,000)
Gross profit 3,828,000
Goodwill write-down 882,000 (this may be zeroed by changes to new Intl accounting stndrds)
Overheads 2,946,000
Net Profit zero

Each box sells at 750 (about 50% higher than aluminium boxes)
So they need to sell 10,208 boxes per year!!
On the above basis, taking out goodwill write down and ignoring depreciation (v. rough) they need to sell 7,856 p.a. to achieve cash break even - say 7,200 excluding depreciation of 246,000

They've announced sales of 750 so far this year this year.

Their capacity was increased last year from 10 to 50 boxes a week - that's 2,600 p.a. - according to last year's accounts.

Just read a website (see below, which I originally posted some time ago) that says they need to sell 600 boxes a month to become cash neutral. That's 7,200 p.a. It ties in with my figues above but is almost 3 X their capacity.

Their target is to reach 10% of the world market estimated at 75-150m p.a. within a year, which matches my break even figure, but their actual sales are no where near this. Then they want to aim for 25% of the market eventually.

Something is not in kilter here.

Overheads seem quite high in addition to cost of sales which should include manufacturing materials and labour - were they exceptionally high last year with r&d costs written off? Can they be reduced?

Last year's accounts say they will not be profitable before 2006, but will they make it in 2007?

There is also another interesting article on this site about the new sales team.

http://www.jeccomposites.com/
enter aerobox in the search box, then hit paragraph 2. then scan down to 15/02/05 dated article on aerobox. also - hit paragraph 1. for new sales team update.
sd

Just wait for the China news !

Is there something you would like to share with us, moneyman? I also think the China JV, now presumably being pursued by their new man in Asia, Dr Ting Ho, is a very big thing, but have no view as toi when/if it may happen. Can you enlighten us?

sd

posted on advfn by
metex - 1 Sep'05 - 15:25 - 26169 of 26209

"The GROUP HISTORY....regarding product development....taken straight from Arx website....www.aeroboxplc.com....makes very interesting reading IMHO.

2005.

MAY

50,000 flights completed.

Aerobox starts trials in China.

Interim certification granted by Chinese Aviation Authority.

APRIL

Modified Aerobox starts Military trials.

MARCH

Insulated curtain Aerobox launched for Perishable market.

FEB

25,000 flights completed.

Kelvin Prototype starts airline trials in Japan.

JAN

First non-aviation contract signed."

Results ot today, rehashing old news mainly. $1.5m boxes contracted for sale H2. $1m fibre technology sales for H1 2006 - more upbeat, but still reflecting how tough it is to bring new ideas to market - cf. SEO and PGS.

SP took a tumble by 1p or so, now lots of healthy buyers out there topping up - which is where I'd be if my allocation was not already filled.

Lon-term - can you see this SP at 70p in 5 years time? If so, HOLD tight.

sd

interesting results. looks like the pricing issue will not go away and the "whole life concept" is still a hard sell. i remain a holder but need to see order flow increase. I am pleased they have shelved the refigeration boxes - focus on the main 35-40,000 box market first and then diversify.

rgds
PT

Looking at the 8 or 10 (?) US airlines in Chapter 11, and the w/wide difficulty of turning a profit, it's not surprising purchasing managers are not putting their heads above the parapet.

btw - BIG ommission this morning was no mention of Chinese JV. Either it's nowhere, or imminent and sensitive. I suspect the former unfortunately. Any gossip out there on this one?

sd

Good news at last, hope they can hold on to today's gain.
AeroBox Composite Structures ('ACS'), the US subsidiary of Aerobox plc has
agreed to a 5 year supply contract to supply the AeroBox AKE-SLD (solid bifold
door) for use by a Middle East airline. The contract has a minimum value of US$6
million and ACS will deliver ULDs with a minimum value of US$1.2 million in the
first half of each calendar year.

Hope you're right too, knocker1!

this is really really good news. no doubt they can now raise a bit of capital from the order flow but is a great win. i really want to see insiders now buying.

someone just took their foot of the windpipe again - better take some deep breaths while you can till it clamps back down again!

great news, nice order over nice long period. need a few more to bring it back to life fully. still got all mine - waht else can you do with them?

prop, guess you right about having to raise more money - at a heavy discount to the favoured few I imagine.

sd