Xpediator PLC (LON:XPD) said activity in its transport services and solutions business has continued through the coronavirus (COVID-19) crisis with high demand in most sectors, though there has been a slowdown in some areas.
In a statement, the freight forwarding group said trading in the quarter to end-March was broadly in line with management expectations, with like-for-like revenues slightly up on the previous year though it has taken actions to protect the business during the pandemic.
Temporary pay reductions have been introduced across the group, capital investment reduced, and the final dividend for 2019 will be paid in shares rather than cash.
Stephen Blyth, chief executive commented: "2019 saw our revenues increase substantially by 19% to £213.2 million, and helping to end the year with strong cash balances."
“However, the outbreak of COVID-19 has changed the commercial world, with the duration and ultimate impact of the virus are as yet unknown. The group continues to seek acquisitions and the current crisis will, we believe, provide many opportunities to reach our target to grow the business over the next few years,” he added.
For the year 2019, like-for-like sales increased by 10.4% with profits of £2.18mln, against £5.6mln in 2018, the group reported.
House broker Cantor Fitzgerald said while there is significant uncertainty in European supply chains and consumer markets at the moment, Xpediator should prove resilient with its strong balance sheet, asset-light business model and flexible cost base.
Trading is seasonally stronger in the second half of the year the broker expects the company to remain healthily profitable in 2020, though it will review its forecasts when Europe starts to exit lockdown.
Cantor has a target price of 40p against a price of 28p, up 1% today.
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