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Robert.Jervis_43227 Feb 12

Organic growth drives Xpediator forwards

Organic growth drives Xpediator forwards image
Xpediator has confirmed that trading for the year ended 31 December 2019 is expected to be in line with market expectations
 
Stephen Blyth, CEO of Xpediator said:

"2019 saw the Group increase sales by £33 million, an excellent achievement and one we intend to build upon in 2020. We have expanded the services we are able to offer, have attracted more customers and see further opportunities to increase the number of services we provide including assessing how various new technologies might further improve operations whilst continuing to monitor the cost base of the Group. Despite the challenges incurred during 2019, the core businesses have performed strongly, and the Board remains confident in the outlook for the Group."

Financial Highlights (unaudited)
 
Group turnover increased 19% to £212 million (2018: £179.2 million) driven by a healthy mix of organic and acquisition led growth: 
  • £18 million / 10.4% organic sales growth
  • £15 million / 8.6% generated from acquisitions
  • Good organic growth across the Group:
  • Freight Forwarding, sales up 16%
  • Transport Solutions, sales down 3%
  • Logistics & Warehousing, sales up 32%
  • Adjusted pre-tax profit expected to be slightly above £5.0 million, in line with management guidance provided in the Company's 2019 interim results
  • Net cash increased to £6.9 million (2018: £3.4 million) excluding finance leases, reflecting strong cash generation and the Group's asset light structure
Operational Drivers
 
  • The Baltic region was again a key growth area within the Freight Forwarding division with Lithuania and Estonia performing particularly strongly compared to prior year 
  • The Pall-EX franchise which provides national 24-hour pallet services across Romania continues to grow and is now handling 60,700 pallets per month (2018: 50,0000) 
  • Benfleet Far East activity also continued to grow in-line with management expectations 
  • Previously reported issues at Benfleet and Import Services now resolved and both are well positioned to deliver growth in 2020 
  • The project in Regional Express is now operational with offices established in both China and Germany and volumes expected to increase substantially during 2020 
  • Focussed on successfully completing the final stages of integration of previously acquired businesses in the first half of 2020 
  • Continued healthy pipeline of potential acquisitions, albeit the focus remains on improved integration of recent acquisitions, cross-selling services and delivering organic opportunities 
  • Committed to long-term value enhancing investment in IT to support the improved efficiency and scalability of the Group
 
Xpediator's audited final results for FY 2019 will be announced in April 2020

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 over 1,000 people and was successfully listed on London's AIM market in August 2017