Trading Update
02/02/2023 07:00
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RNS Number : 6555O Xpediator PLC 02 February 2023
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS CONSIDERED TO CONSTITUTE
INSIDE INFORMATION AS STIPULATED UNDER ARTICLE 7 OF THE MARKET ABUSE
REGULATIONS (EU) NO. 596/2014 AS INCORPORATED INTO UK DOMESTIC LAW BY VIRTUE
OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("UK MAR"). UPON THE PUBLICATION
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INFORMATION WILL BE CONSIDERED TO BE IN THE PUBLIC DOMAIN.
2 February 2023
XPEDIATOR PLC
("Xpediator", the "Company" or the "Group")
Trading Update
Xpediator, (AIM: XPD), a leading provider of freight management services
across the UK and Central and Eastern Europe ("CEE"), is pleased to announce
that trading during the final quarter of the year remained strong and that
revenues for the 12 months to 31 December 2022 will be just below £400
million (2021: £297 million). As a result, adjusted profit before tax is
expected to be significantly ahead of previous management guidance of £9.0
million.
As importantly, the net debt position which was identified by the new
management team as too high and as a primary focus to reduce, is expected to
have decreased to approximately £3.6 million at the year-end versus £8.0
million as at 30 June 2022. Positive trading and better cost control have
driven this improvement and the goal in 2023 remains to move close to a net
cash position.
The strength of the trading position stems from another excellent performance
from the freight forwarding operations in Lithuania and other countries across
the CEE region, in particular in Bulgaria and Romania, in the closing months
of 2022. In the UK, the financial performance of Delamode Anglia also improved
in the latter months of the year.
The logistics division is expected to deliver a satisfactory result after a
slow start to the year with a good contribution from Pall-ex Romania, helped
by better results in the UK logistics division in the last quarter of 2022.
This trend will further benefit from the closure in February 2023 of the loss
making Beckton warehouse, which specialised in high street fashion retail, as
well as recent customer wins at the Braintree warehouse. Both will have a
positive impact on future Group profitability.
With regard to the proposed offer for the Company announced on 20 December
2022, the board of directors of Xpediator (the "Board") continues to consider
its position in relation to its previous statement that it was minded to
recommend the proposed offer by the Consortium(1), assuming a formal offer
were to be made for the Company. The Board will provide a further update in
due course, and in the meantime, shareholders are recommended to take no
further action.
Mike Stone, CEO of Xpediator, said "The business finished the year strongly
and is now expected to deliver a record performance with revenues close to
£400 million. This, together with the significant reduction in net debt, the
changes already made and currently being realised in the logistics division
and in UK freight forwarding, means the Company is in a good position entering
2023. Although we still face a number of macroeconomic uncertainties,
internally the Company is well prepared to build upon our 2022 performance,
allowing the possibility of recommencing its dividend policy during the year.
Further details on this will be provided in the Company's full year 2022
results."
For the purposes of UK MAR, the person responsible for arranging for the
release of this information on behalf of Xpediator is Richard Myson.
For enquiries, please contact:
Xpediator plc Tel: +44 (0)330 043 2395
Mike Stone, Interim CEO
Richard Myson, CFO
Zeus (Nominated Adviser and Broker) Tel: +44 (0)20 3829 5000
David Foreman, Jamie Peel, James Hornigold (Investment Banking)
Dominic King (Corporate Broking)
Novella Communications (Financial Public Relations) Tel: +44 (0)20 3151 7008
Tim Robertson
Safia Colebrook
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 UK and Romania. The business offers integrated freight
management within the supply chain logistics and fulfilment sector, through
its three main areas: freight forwarding, logistics and warehousing and
transport services. With headquarters in Braintree, Essex and country offices
in nine CEE countries across 38 sites, the Group currently employs over 1,200
people and was successfully listed on London's AIM Market in 2017.
For more information, please visit: www.xpediator.com
(http://www.xpediator.com/) .
Alternatively, do follow us on Twitter at @Xpediator
(https://twitter.com/Xpediator) or find us on LinkedIn at Xpediator Plc
(https://www.linkedin.com/company/11135238/) .
(1) The Consortium includes the Company's largest shareholder Cogels
Investments Limited (the investment vehicle of Stephen Blyth), funds managed
by Baltcap and Justas Versnickas (the Managing Director of, and shareholder
in, Delamode Baltics).
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