Axeon cuts losses and R&D continues -

Axeon cuts losses and R&D continues


LONDON — Axeon Holdings plc, a provider of green energy and advanced control solutions to improve efficiency and emissions in the automotive and industrial markets, has released its financial results for the first year since it became a private company.

Axeon (Aberdeen, Scotland), which joined AIM in June 2005 raising £1.3million, raised revenues to December 31, 2005 by 98% to £243,000 (2004: £123,000) with a loss after tax reduced by 41% to £1.16million (2004: £1.97million).

The company has demonstrated its Vindax technology integrated with major chip manufacturers including Freescale and Infineon and there has been evaluation of Vindax solutions with a number of U.S. and European automotive manufacturers and Tier 1 suppliers. It has also provided a proof of concept using Vindax technology for advanced Lithium-ion (Li-ion) battery management systems.

So far in 2006 Axeon (Aberdeen, Scotland) has acquired Advanced Batteries Ltd (now renamed Axeon Power Ltd), and in March 2006 raised £4million net of expenses. It has signed to become the exclusive supplier of battery management systems and battery cassettes for Modec’s new electric city delivery vehicle.

Hamish Grant, Chief Executive Officer of Axeon, said, “2005 was an important foundation year for us, with 2006 starting well. Some people say that we have to give up the automobile to reduce green house gas emissions. At Axeon, we are proving that innovation can produce effective ways of reducing emissions and increasing efficiency whilst still allowing the economic and social benefits of automotive use.”

“The financial performance of the Company during 2005 illustrates that it was still at an early stage of revenue development, said, Axeon's Chairman, Charles Matthews. “Following a reduction in staffing and other costs made in the fourth quarter of 2004. This has allowed us to significantly reduce the 2005 operating loss by 46% to £1.0million whilst continuing to invest in research and development.”

A project conducted during 2005 was an evaluation for ITI Energy of the benefits that Vindax technology could add to an advanced battery management system for Li-ion battery cells. The preliminary project was completed successfully and Axeon has now been contracted to develop a pre-production Li-ion battery management system during 2006. This project led to co-operative work with the battery design and control company that led to its acquisition under the banner of Axeon Power in March 2006.

During the second half of 2005 two patents were granted: European Patent number 1149359 “Neural Processing Element for use in a Neural Network”; and U.S. Patent number 6,971,345 “Control of a Mechanical Actuator using a Modular Map Processor”. These are the first patents to be granted on the technology of the Company and represent a fundamental barrier to competition.

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