Orders are beginning to flow in for Axios Mobile Assets Corp (CVE:AXA) after the company became the first pallet pooler with Safe Quality Food (SQF) certification in the sanitation and hygiene services category last month.
The company, which produces lightweight composite pallets, announced it has received orders to provide its pallets to two facilities operated by one of the largest egg producers in the United States.
The pallets, made of a proprietary US Food and Drug Administration-compliant compound, will be used at the facilities in the US Midwest and Southeast.
Once service begins, seven major egg producers will be using Axios pallets and logistics to transport goods to distribution centres.
An eggstraordinary deal?
“Most of the pallets in the Axios fleet are currently utilized by the egg industry,” the company said, as they are “particularly well suited to transporting and tracking perishable foods”.
The latest order follows on from the SQF certification, which shows Axios is being recognized for reducing the chance of unsafe food reaching the marketplace.
The certification is “another significant value add for our clients who require or would benefit from a cleaned and sanitized pallet”, said chief executive Richard MacDonald.
The CEO spoke to Proactive’s Sarah Lowther…
On the pallets…
“We are about 40% less weight and because of that we have been able to write a carbon protocol for the usage of our pallets whereby the clients within our supply chains are able to gain carbon credits by loading their goods on our pallet versus the heavier wooden pallets.”
On the SQF certification…
“In order to get SQF, what we’ve had to do is get a certification to get below 30 parts per million of bacteria, and we do the testing as the pallets make their initial journey they go through our wash station each and every time.”
In rude financial health
The pallet maker reported an impressive jump in total revenue to C$1.3mln for year to December 31 with pallet rental jumping to C$975,000 from C$73,000 a year earlier.
In common with most companies at this formative stage of development, Axios was loss-making (to the tune of C$8.3mln). More importantly it has enough cash to invest in growth with around C$11mln in the bank at the year-end.
Michael Cooke joined as the company’s new chief financial officer in April, having most recently been a senior director for Achievers Corp, a software-as-a-service group.
He brings more than ten years’ experience in leadership positions in accountancy and financial analysis.
Marc Topacio, who had held the CFO role, will move to the new role as vice-president of pooling operations, where he will “add further depth to a strong and expanding team”, CEO Macdonald said.
Not done there, Axios also promoted John Albright, who was already a director, to the role of chairman after the resignation of Osama Arafat.