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Robert.Jervis_43227 Jan 31

Xpediator trading update

xpediator
Looking to expand as revenues surge ahead
Xpediator has provided a trading update to the end of 2021. Business has continued strongly across all three divisions and expects to deliver revenues in excess of £300 million (2020: £221 million) and adjusted profit before tax well in excess of £8.5 million (2020: £7.2 million), in line with the upgraded guidance given in June 2021.

Revenue growth continued into the second half of 2021, with strong increases in Freight Forwarding revenues, the largest division of the Group, driven primarily by CEE markets, increased sea freight volumes and an uplift from UK customs clearance. Lithuania and Bulgaria are again expected to be significant contributors to the uplift in performance.

Pallex Romania has contributed to another positive trading period for the Logistics and Warehousing division. In addition, the recent partnership with e-Commerce fulfilment expert, Synergy Retail Support, has introduced new customers into the Braintree site (Essex) and other Xpediator warehouses.

The consolidation of Southampton warehousing activity was completed in 2021. Substantial benefits of the integration and additional 200,000 sq ft are expected to be realised in 2022.

Transport Support Services, trading principally under the Affinity brand, provides bundled fuel and toll cards alongside financial and support services for hauliers in Southern Europe.  The recovery seen in the first half of 2021 has continued into the second half of the year, in part due to increased freight movement and expansion into the Balkans, despite the reduction in road transportation due to the pandemic.

Advanced payments to secure key supplier performance and additional cost associated with a new freight forwarding operating system in the UK means the Company expects to report a net debt position £4.9 million, as at 31 December 2021. Alongside the new operating system and implementing new processes, receivables have increased which will unwind in 2022 as these processes are embedded.

Xpediator listed in 2017 on a policy to grow both organically and by acquisition. This strategy continues to progress with several acquisition targets identified in 2021 which are at varying stages of Board consideration. If, as hoped, any one of these complete in 2022, it is expected they would significantly increase the activity and capability of the Group.

The Group looks forward to reporting full year results for 12 months to 31 December 2021, in April 2022.

Wim Pauwels, Interim Chief Executive Officer of Xpediator, said:

"We see excellent potential for this business to grow organically and by acquisition. The new warehouse in the port of Southampton will be a significant factor in 2022 together with a range of growth projects and potential acquisitions we have in progress across the business. We are therefore in a strong position to build upon this in 2022"