The company is on course to meet market expectations for revenues in the current year of more than £200mln but profitability will be sub-par, owing to a number of factors including a decision to reconfigure the group's warehouse in Braintree, Essex, so that it is suitable for higher-value fulfilment business, which will result in a loss of business for a few months.
Profitability has also been dented by an increase in labour rates at Import Services Limited, part of its UK logistics division, which it has not been able to pass on to customers.
EshopWeDrop, the group's e-commerce business has generated lower volumes in the current year. Michael Grange, currently the group's chief information officer, will now focus solely on the development of the group's e-commerce business and his current position will be filled internally.
Turnover in Regional Express is currently tracking below that achieved in 2018 but this is largely as a result of management focusing attention on securing two valuable and strategic contracts, Xpediator said. If landed, the contracts are expected to generate material and sustainable profit growth in 2020 and beyond.
For a logistics specialist such as Xpediator, preparations for Brexit are of crucial importance and the group revealed that some additional costs have also been required to prepare for the consequences of a "no-deal Brexit".
@Xpediator is ranked in @LogisticsManagr Top 50 Logistics Service Providers list for the first time!— Xpediator PLC (@Xpediator) July 8, 2019
A definitive guide to the Top 50 logistics service providers, ranks the leading players in the UK market by turnover, as well as a huge amount of extra information. #XPD pic.twitter.com/rdLQjuqXJZ
On the plus side, the turnaround at the Benfleet operations continues, the Anglia division is performing strongly while the Romanian Pallex business and the Affinity division are also trading well.
“We are disappointed to be below our profit targets for this year; however, critically customer demand for our services remains strong reflected in our continued sales growth which, together with the investments we have made across the business, particularly into information technology makes us confident in the group's future growth prospects for 2020 and beyond," said Stephen Blyth, the chief executive officer of Xpediator.