2019 Highlights

2019 saw our revenues increase substantially by 19% to £213.2 million, and helping to end the year with strong cash balances. The Group continues to seek acquisitions and the current COVID-19 crisis will, we believe, provide many opportunities to reach our target to grow the business over the next few years. 

Stephen Blyth, Chief Executive Officer of Xpediator

Strong revenue growth combined with good cash generation

  • Substantial increase in revenues by 19.0% to £213.2 million
  • Like for like revenues increased by 10.4% reflecting good organic growth
  • Delivered ahead of revised expectations with adjusted profit before tax of £5.2 million1
  • Improved cash generation with a strong focus on working capital
  • Maintained financial headroom with positive net cash (excluding liabilities arising from the impact of right-of-use assets debt) of £7.0 million as at 31 December 2019
  • Adjusted earnings per share decreased by 41.7% to 2.80p
  • Final proposed scrip dividend, with the intention to return to cash dividends from the 2020 interim half year results

1 Adjusted profit before tax excludes the impact of exceptional costs relating to aborted acquisition costs of £0.19m (2018: £nil), additional contingent deferred consideration on Anglia Group Forwarding Limited of £0.451 million (2018: £nil), £0.215 million (2018: £nil) relating to additional contingent deferred consideration due on Regional Express acquisition, £nil (2018: £0.318 million)
relating to acquisition costs, £0.294 million (2018: £0.232 million) unwind and addback of discount on deferred consideration and £1.407 million (2018: £1.033 million) relating

to the amortisation on the intangible assets relating to the acquired entities and £0.419 million (2018: £nil) relating to the net consolidated income statement impact following the application
of IFRS 16

Operational Highlights 

  • Freight forwarding revenues increased by 16.6% to £159.6 million with the Baltics and Balkans key areas of strength despite strong prior year comparators
  • Pall-Ex franchise in Romania also performed strongly again handling in excess of 730,000 palletised freight (2018: 610,000) a 19.7% increase
  • Logistics revenues increased by 32.2% to £47.5 million with increased occupancy in the Romanian, Baltics and Balkans key areas of strength despite strong prior year comparators
  • Opening of an office in Shanghai to support the operation of a key contract
  • Affinity Transport Solutions continued its steady growth performance, delivering £2.5 million of operating profit before central overhead allocation (excluding exceptional items)

Prospects for 2020 & COVID-19 Impact 

  • Asset light structure and flexible cost base, enabling the Group to manage the business during the early days of the current COVID-19 crisis
  • Overall demand for transport services and solutions has continued with high demand in most sectors, whilst some areas have seen a slow down due to impacts of COVID-19
  • Trading of the Group in Q1-2020 was broadly in line with management expectations
  • To further protect and manage the business responsibly during this extraordinary period the Board has introduced temporary pay reductions across the business, reduced overheads appropriate and is minimising capital investment projects. In addition, to conserve cash, the final dividend for 2019 will be structured as a scrip dividend
  • At the same time, the Board is mindful of the opportunities that may arise from the current crisis and is determined the business will be well placed to capitalise