Xpediator PLC (LON:XPD) said it believes its services will be “critical” for companies looking to move goods in and out of the UK post-Brexit as the freight forwarder posted strong full-year results. sending its shares higher.
The AIM company, which organises the collection and delivery of products on a firm’s behalf, already holds Authorised Economic Operator status which will allow it to support importers and exporters in “most forecasted [Brexit] scenarios”.
Demand for its services from customers’ looking to navigate increased red tape and customs checks should help Xpediator rack up more than £200mln in revenue this year.
The company confirmed on Monday (29 April) that revenue rose by 54% to £179.2mln in the year ended 31 December 2018. Pre-tax profits more than doubled to £5.6mln.
Growth was helped by two acquisitions - Import Services Logistics and Anglia Forwarding – that added 18% to turnover and brought with them facilities in Felixstowe, Heathrow and Southampton.
Freight forwarding across the Baltics and Balkans were especially strong, while the pallet franchise in Romania continues to do well.
Given the solid showing, bosses have proposed a final dividend of 0.84p a share, taking the total dividend for the year up to 1.26p – a 27% increase versus 2017.
“The business is performing extremely well, growing both organically and through acquisition,” said chief executive Stephen Blyth.
“Good cash generation during the year reflected a strong focus on working capital and increased financial disciplines.
“The group has a solid financial base with the financial headroom to support the group's future ambitions. In 2019 we are on track to exceed £200mln of sales, a near threefold increase since 2016.”
In afternoon trading, shares in Xpediator were 9.7% higher at 51p.
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