02:00 Mon 23 Nov 2020
Xpediator PLC - Trading Statement
XPEDIATOR PLC
("Xpediator" or the "Group")
Trading Update
Xpediator (AIM: XPD), a leading provider of freight management services across the
Trading
The Group's primary business is managing the transportation of goods through its freight forwarding division. As an asset light operation, without the fixed costs of owning a large fleet of vehicles, the division is more able to match costs to volumes. This enabled the division to maintain cost flexibility throughout the pandemic, including when volumes dropped sharply at the beginning of the COVID-19 outbreak. Since then, demand for freight forwarding services has strengthened with the Group seeing additional income from new markets. As a result, 2020 revenues for this division are expected to exceed 2019 by approximately
The Group's Transport Solutions division, trading principally under the Affinity brand, provides fuel and toll cards to European hauliers. The COVID-19 pandemic led to reduced traffic volumes and significantly lowered fuel prices, which translated into lower income levels in the first half of the year. Since then, monthly revenues have recovered well from 40% down in April (vs 2019) to only 6.5% below in October compared to 2019. Revenues for the year are now expected to be approximately
The Group's third division, logistics and warehousing, owns and manages warehousing in the
Nidd Transport
On
Brexit & Outlook
Since 2016, the Group has been preparing itself and its clients for a potential hard Brexit. A new customs brokerage team has been established, set up to handle the likely increase in declarations whatever the Brexit deal outcome. If there is a change in border controls, then the Group believes it will have an increased workload which should translate into higher revenues.
The outlook for 2021 remains strong, even with likely ongoing disruption in specific areas relating to the pandemic. The Group's confidence is based on maintaining current trading patterns, the ongoing benefit of cost reductions made, additional income from Nidd and a healthy balance sheet. The Group anticipates continuing with its progressive dividend policy to reflect the increase in expected profitability.
Commenting on the trading performance,
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Xpediator plc |
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Tel: +44 (0)330 043 239 |
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Cenkos Securities plc (Nominated Adviser & Joint Broker) |
Tel: +44 (0)20 7397 8900 |
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Novella Communications (Financial Public Relations) |
Tel: +44 (0)20 3151 7008 |
Tim Robertson |
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About Xpediator:
Xpediator is a well-established international provider of freight management services. Established in 1988, the Group's international network of offices provides road, sea and air freight services, together with logistics and warehousing in the
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