Xpediator PLC (LON:XPD) said first-quarter trading in its current year has been “ahead of management expectations” as the firm reported a profit surge in 2020 driven by changes to its business caused by the Coronavirus (COVID-19) pandemic.
In its results for the year to December 31, the freight management specialist reported adjusted pre-tax profit of £7.2mln, up from £5.2mln in 2019, while turnover rose to £221.2mln from £213.2mln.
WATCH: Xpediator expect 'continuation of simplification of the business' in 2021 after bump in 2020 demand
The company’s largest segment, freight forwarding, saw revenues rise 7.1% over the year, offsetting declines in its warehouse & logistics and transport services divisions of 6.3% and 6.9% respectively.
The company also reported strong cash generation during the year, while its total dividend for the year was raised to 1.5p per share from 1.33p the year before.
Looking ahead, Xpediator said its first-quarter trading results have been “positive”, adding that post-Brexit transportation complexity will require is customers to acquire additional services, which will be net profitable for the group.
The company added that it will see its first full year of benefit from £0.5mln of annualised cost savings during the pandemic and that it also has a “healthy pipeline of potential acquisitions”.
"We are naturally very pleased to have delivered this performance during such a challenging year. Increasing both revenues and profitability is an excellent achievement and we think confirms the strength of the platform the group has. Added to this, we now have a new senior management team led by CEO Robert Ross whilst retaining the expertise and knowledge of Stephen Blyth, the founder of the business, on the board”, Xpediator chairman Alex Borrelli said in a statement.
“Our aim to become a leading international freight management and logistics provider, is unchanged. We continue to examine strategic acquisitions with a focus on building a scalable and risk adjusted platform to support an expanding portfolio of freight management companies across the UK and Europe with a particular expertise on Central and Eastern Europe. 2021 has begun well and we are quietly confident of our ability to achieve our objectives", he added.