Xpediator PLC Trading Statement (1553H)
July 30 2019 - 1:02AM
UK Regulatory
TIDMXPD
RNS Number : 1553H
Xpediator PLC
30 July 2019
30 July 2019
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
XPEDIATOR PLC
("Xpediator" or the "Group")
Trading Update
Xpediator, (AIM: XPD), a leading provider of freight management
services across the UK and Europe, announces the following trading
update for the year ending 31 December 2019.
Due to a number of factors summarised below, while the business
is on course to meet market expectations for revenues in the
current year of over GBP200 million, profit before tax is
anticipated to be materially below market expectations.
As a result of a large customer recently giving notice in
respect of its contract with Xpediator's UK logistics division to
utilise the warehousing facilities at Braintree, the Board has
decided to take the opportunity to invest in the warehouse so that
it is suitable for higher value fulfilment business rather than
lower margin storage activities. This re-configuring of the
Braintree warehouse will entail a loss of business while the
proposed investment is carried out over the next few months. In
addition, Import Services Limited, part of the UK logistics
division, has suffered an increase in labour rates which it has
been unable to pass onto customers.
Currently in its third year of development, EshopWeDrop, the
Group's e-commerce business has generated lower volumes in the
current year whilst continuing to invest in developing its
franchise model in further geographies. Michael Grange, currently
the Group's chief information officer, will now focus solely on the
development of the Group's e-commerce business and his current
position will be filled internally.
Turnover in Regional Express is currently tracking below that
achieved in 2018 which has impacted upon profitability this year.
However, this is largely as a result of management focussing
attention on securing two valuable and strategic contracts which is
expected to generate a material and sustainable profit growth in
2020 and beyond.
As previously announced, the Group has been investing heavily in
infrastructure and central resources required to support the
enlarged business as well as position the Group for further growth.
The rate of this extensive investment has been accelerated and will
create the capability required to facilitate the Group's organic
growth and buy-and-build strategy. Some additional costs have also
been required to prepare for the consequences of a "no-deal Brexit"
as we continue to work with our customers to ensure a continuous
service.
The Board is pleased that the turnaround of Benfleet continues,
Anglia is performing strongly and the Romanian Pallex business and
Affinity are also trading well. The generation of operating cash
flow also remains satisfactory.
Chief Executive, Stephen Blyth commented, "We are disappointed
to be below our profit targets for this year, however, critically
customer demand for our services remains strong reflected in our
continued sales growth which, together with the investments we have
made across the business, particularly into information technology
makes us confident in the Group's future growth prospects for 2020
and beyond."
Enquiries
Xpediator plc Tel: +44 (0)330 043
2395
Stephen Blyth, Chief Executive Officer Email: info@xpediator.com
Stuart Howard, Chief Financial Officer
SP Angel Corporate Finance LLP (Nominated Advisor Tel: +44 (0)20 3470
& Joint Broker) 0470
Jeff Keating
Caroline Rowe
Cantor Fitzgerald Europe (Joint Broker) Tel: +44 (0)20 7894
7000
David Foreman, Michael Boot (Corporate Finance)
Caspar Shand Kydd (Sales)
Novella Communications (Financial Public Relations) Tel: +44 (0)20 3151
7008
Tim Robertson
Fergus Young
About Xpediator:
Xpediator is a well-established international provider of
freight management services. Established in 1988 by Stephen Blyth,
the Group's international network of offices provides road, sea and
air freight services, together with logistics and warehousing in
the UK and Romania. The business offers integrated freight
management within the supply chain logistics and fulfilment sector,
through its three main areas: freight forwarding, logistics &
warehousing and transport services. With headquarters in Braintree,
Essex and country offices in nine CEE countries across 38 sites,
the Group currently employs 938 people and was successfully listed
on London's AIM market in August 2017.
For more information, please visit: www.xpediator.com.
Alternatively, do follow us on Twitter at @Xpediator or find us
on LinkedIn at Xpediator Plc.
This information is provided by RNS, the news service of the
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END
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