Xpediator PLC Trading Statement (0900G)
November 23 2020 - 1:00AM
UK Regulatory
TIDMXPD
RNS Number : 0900G
Xpediator PLC
23 November 2020
23 November 2020
XPEDIATOR PLC
("Xpediator" or the "Group")
Trading Update
Xpediator (AIM: XPD), a leading provider of freight management
services across the UK and Central and Eastern Europe, is pleased
to provide a trading update for the current year ending 31 December
2020. Trading since the half year has continued to recover to
historic levels and the Group expects to report adjusted profit
before tax of at least GBP6.0 million for the year to 31 December
2020, an 18% increase over the prior year (2019: GBP5.15
million).
Trading
The Group's primary business is managing the transportation of
goods through its freight forwarding division. As an asset light
operation, without the fixed costs of owning a large fleet of
vehicles, the division is more able to match costs to volumes. This
enabled the division to maintain cost flexibility throughout the
pandemic, including when volumes dropped sharply at the beginning
of the COVID-19 outbreak. Since then, demand for freight forwarding
services has strengthened with the Group seeing additional income
from new markets. As a result, 2020 revenues for this division are
expected to exceed 2019 by approximately GBP10.0 million (2019:
GBP159.6 million).
The Group's Transport Solutions division, trading principally
under the Affinity brand, provides fuel and toll cards to European
hauliers. The COVID-19 pandemic led to reduced traffic volumes and
significantly lowered fuel prices, which translated into lower
income levels in the first half of the year. Since then, monthly
revenues have recovered well from 40% down in April (vs 2019) to
only 6.5% below in October compared to 2019. Revenues for the year
are now expected to be approximately GBP5.0 million (2019: GBP6.2
million).
The Group's third division, logistics and warehousing, owns and
manages warehousing in the UK and Romania as well running the
leading pallet distribution network in Romania under the Pall-Ex
brand. Warehousing in Romania and Pall-Ex have performed well
throughout the year, recovering from the impact from the pandemic.
Income from UK warehousing was reduced due to lower activity
amongst retailing clients, however, the second half has been much
stronger, especially at Import Services based in the Southampton
docks. As a result, the Group expects revenues for the division to
be flat year-on-year at approximately GBP48 million.
Nidd Transport
On 6 October 2020, the Group acquired UK-based international
groupage freight forwarder and operator, Nidd Transport Ltd
("Nidd") for GBP4.6 million. The integration is now underway and
the business is performing slightly ahead of management
expectations.
Brexit & Outlook
Since 2016, the Group has been preparing itself and its clients
for a potential hard Brexit. A new customs brokerage team has been
established, set up to handle the likely increase in declarations
whatever the Brexit deal outcome. If there is a change in border
controls, then the Group believes it will have an increased
workload which should translate into higher revenues.
The outlook for 2021 remains strong, even with likely ongoing
disruption in specific areas relating to the pandemic. The Group's
confidence is based on maintaining current trading patterns, the
ongoing benefit of cost reductions made, additional income from
Nidd and a healthy balance sheet. The Group anticipates continuing
with its progressive dividend policy to reflect the increase in
expected profitability.
Commenting on the trading performance, Robert Ross, CEO, said,
"For Xpediator, 2020 has demonstrated the strength of being a
diversified business. While the COVID-19 pandemic has resulted in
less traffic and therefore reduced use of our fuel cards, demand
has increased for our freight forwarding and warehouse and
logistics services, and we have also delivered on cost saving
initiatives. The net result is expected to deliver an 18% increase
in annual adjusted profit before tax and annual cost savings of
GBP0.5 million. This, combined with our fuel card business
returning to normal, means we are moving forward into 2021 with
confidence."
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
Robert Ross, CEO Tel: +44 (0)330 043
239
Cenkos Securities plc (Nominated Adviser & Tel: +44 (0)20 7397
Joint Broker) 8900
Max Hartley, Max Gould (Corporate Finance)
Nick Searle (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, 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 over 1,000 people and was successfully listed on
London's AIM market in 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 .
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