leadf
logo-loader
viewXpediator PLC

Xpediator expects opportunities as logistics sector deals with pandemic

Snapshot

  • Freight management firm
  • Original business set up by CEO 30 years ago
  • Target of £1bn revenues
cargo trucks

Quick facts: Xpediator PLC

Price: 23 GBX

AIM:XPD
Market: AIM
Market Cap: £32.58 m
Follow

​​​​​​

What it does

Xpediator PLC (LON:XPD) is a freight specialist.

Delamode, a freight forwarding operation, was set up thirty years ago by the firm’s chief executive and founder, Stephen Blyth.

This remains the group’s largest division, ahead of the Logistics and Warehousing arm, which has more than 80,000 square metres of warehousing capacity and a fast-growing pallet network franchise called Pall-Ex Romania.

Xpediator’s third division, Affinity Transport Solutions, sees the group use the purchasing power derived from a network of 1,700 hauliers operating over 12,700 lorries to buy items such as fuel cards, insurance, leasing and ferry transit.

There’s also a smaller but fast-growing division called EshopWeDrop – an online delivery business that allows consumers to take advantage of empty space in lorries to ship things bought in the UK to Lithuania or vice versa, for example.

How it’s doing

In July, Xpediator said transportation volumes are moving back towards pre-coronavirus (COVID-19) crisis levels.

Having made a solid start to the year before the pandemic hit Europe, the group’s performance over the first half of the year was only marginally behind expectations before the massive disruption to travel conditions.

The group said it has performed robustly during the pandemic with a steady recovery since April.

Activity in the logistics division has remained broadly stable while transportation services, after a period of reduced sales, was gathering momentum.

At the start of the pandemic, the company implemented a number of cost-saving measures, many of which will remain in place when things get back to normal, it said.

Xpediator ended June with net cash of around £4.2mln, up from £3.8mln a year earlier, despite paying out £3.6mln in earn-out fees resulting from acquisitions.

"The group continues to see trading volumes moving towards more normal levels but it is still too early to predict with any certainty how quickly our markets will recover, and we therefore remain unable to provide market guidance at this time; however, the business is financially stable and well placed to grow and capitalise on opportunities that may arise alongside the wider global recovery."

Latest video

Inflexion points

  • Xpediator expects to play a critical in UK trade post-Brexit
  • Buy and build strategy to achieve a medium-term target of £1bn in revenues
  • Market highly fragemented and will start to consolidate after COVID-19

 

 

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Xpediator PLC named herein, including the promotion by the Company of Xpediator PLC in any Content on the Site, the Company receives from said...

FOR OUR FULL DISCLAIMER CLICK HERE

XPEDIATOR reveals 'strong start to the year with a resilient performance...

XPEDIATOR PLC (LON:XPD) CEO Danor Ionescu talks to Proactive London about their interim results for the six months ended 30 June 2020. Ionsecu says the business enjoyed a 'strong start to the year with a resilient performance during lockdown'. Overall group turnover was £99.6m compared...

1 week, 4 days ago

2 min read