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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: 24 GBX

AIM:XPD
Market: AIM
Market Cap: £33.99 m
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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.

Delamode 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

For the year ended 31 December 2019, the firm said turnover had risen 19% to £212mln, boosted by acquisitions and organic growth, with adjusted pre-tax profit expected to be in line with guidance at “slightly above” £5mln.

The logistics & warehousing division saw the most expansion with a 32% increase in sales, while the freight forwarding business increased by 16%. Transport solutions, meanwhile, saw sales dip by 3%.

Looking ahead, the company said it will focus on completing the integration of its recently acquired businesses in the first half of 2020, while volumes from its regional express arm are expected to “increase substantially” with new offices established in China and Germany.

In March, it took a lease on a  200,000 sq ft distribution centre at Southampton's container port.

The new warehouse site is designed to connect with subsidiary Import Services' existing quayside distribution centre and will enable it to hold stock under bond for order processing and distribution both in the UK and globally. 

It takes UK warehousing capability to approximately 700,000 sq ft.

 

What the boss says; Stephen Blyth, chief executive

"Historically, Import Services has not always had the capacity to meet demand, this new facility will not only enable us to meet demand but also capture additional market share by being able to offer superior services.

“The timing of this expansion could also work favourably with the UK's move outside of the European Union."

  

 

Inflexion points

  • Xpediaitor expects to play a critical in UK trade post-Brexit
  • Turnover grows by 80% over the past two years
  • Buy and build strategy to achieve a medium-term target of £1bn in revenues
  • Market highly fragemented and will start to consolidate

 

 

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Xpediator PLC's CFO Robert Ross and COO of Logistics Romania to step up as...

Xpediator PLC's (LON:XPD) CFO Robert Ross speaks to Proactive's Andrew Scott following the news chief executive Stephen Blyth will step down from the position. Blyth will continue as a director in the position of founder and non-executive deputy chairman. While the search for a permanent...

1 month ago

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