Xpediator PLC (AIM:XPD) shares advanced 6.7% to 40.25p on Thursday morning after the freight management services company reported strong trading for the fourth quarter and said profits for 2022 will exceed its expectations.
Revenues for the 12 months to 31 December 2022 will be just below £400mln, up from £297mln the year before, the company said in a statement.
As a result, adjusted pre-tax profit is expected to be “significantly” ahead of previous management guidance of £9mln.
The company attributed the strong results to an “excellent performance” from the freight forwarding operations in Lithuania and other countries across the CEE region.
The logistics division is expected to deliver a “satisfactory” full-year result after a slow start to the year, it added.
Meanwhile, Xpediator expects net debt to show a reduction to £3.6mln at end-2022 from £8.0mln six months earlier, driven by positive trading and better cost control.
The company said it aims to move close to a net cash position in 2023.
Chief executive Mike Stone said the company “is in a good position entering 2023” and that it may be able to return to dividend payments.
“Although we still face a number of macroeconomic uncertainties, internally the company is well prepared to build upon our 2022 performance, allowing the possibility of recommencing its dividend policy during the year,” he said.
Xpediator is the subject of a bid proposal from a consortium that includes the investment vehicle of its former boss, Stephen Blyth.
The company said its board continues to consider its position in relation its previous statement that it was minded to recommend the proposed offer, assuming a formal offer was made.