Aerobox - the revolutionary cargo and baggage container Part 2 2006 and beyond.

Yes clive, I have had to change names again, before you ask!

Looking further down the announcement to the "trading update", I find the most worrying parts :

The stated intention was to deliver
$1.5 million of Unit Load Devices ("ULDs") orders in the second half of this
year. To date ACS has delivered over half of the requirement but has experienced
changing delivery requirements from one customer that is likely to mean part of
the sale is pushed into 2006.


So when they get the orders, they can't even deliver them on time!

Margins for the ULD have been an issue where the initial orders were secured at
or around cost

So Biswell was spot on!


The ULD pricing has now been established to ensure a margin which is reasonable
but not capable of covering the ACS overheads in the immediate future

They make this lossmaking strategy sound like an excelent achievement!

With anticipated volumes for Core and ULDs in 2006, ACS is likely to be capacity
constrained in the second half of the year.

So they are making a loss, and can't even up production to improve this?




Sorry chaps, but i'm glad I got out @ 6.59p. There may be gains to be had on spikes in this share, but i'll be taking it off my monitor for the time being.

Obviously there are no more orders to come in the short term, or ARX would have timed the announcement with it, hence getting a placing away at hopefully a higher price. This placing is distressed, and I am thoroughly disappointed with ARX.