Half Year Results

25 September 2017
Half Year Results

The information contained within this announcement is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 (“MAR”).  Upon the publication of this announcement via a Regulatory Information Service (“RIS”), this inside information is now considered to be in the public domain.


(“Xpediator” or “the Company” or “the Group”)



Xpediator Plc (AIM: XPD) a leading international freight forwarding company is pleased to announce its unaudited interim results for the six months ended 30 June 2017.

Significant uplift in revenue and profits for H1 2017

  • 56% increase in revenue to £49.1 million (H1 2016: £31.5 million) driven by organic growth across all activities, contribution from EMT and increased focus by the Freight Forwarding Services division on full load deliveries
  • 24% increase in adjusted operating profit to £1.3 million (H1 2016: £1.1 million)*
  • Profit after tax increased to £0.53 million (H1 2016: £0.16 million)
  • Adjusted earnings per share increased to 0.90p (H1 2016: 0.46p)*
  • Interim dividend of 0.347p per share totalling £350k

* Adjustment for one-off costs incurred, being Group restructuring and IPO costs totalling £331,000 for the six month period to June 2017 and £458,000 for the same period in 2016. The 2016 full-year figures include a cost of £654,000 relating to these non-trading expenses.

Good growth across all three divisions

Freight Forwarding Services

  • Reflecting the switch to full load focus, revenues from Freight Forwarding Services increased by 55%
  • Marked organic growth in trading across the Balkan regions
  • B2C e-Commerce fulfilment services provider EshopWedrop developing well, set for further expansion via franchise

Transport Support Solutions

  • Generated from the core DKV fuel card product, revenues from this division increased by 39%
  • Growth was driven by increased demand for fuel cards, particularly under the Affinity Lite offering

Logistics & Warehousing

  • Strong performance from Pall-Ex and EMT helped increase revenues by 64%
  • Strong volumes from Pall-Ex Romania achieving in excess of 40,000 pallets of freight per month and next Pall-Ex franchise expected to commence in Q4
  • Opened 10th Romanian warehousing facility in Bucharest in April,
  • Successful integration of EMT, acquired in March 2017, has enabled the transfer of all international fashion logistics services to be consolidated into EMT’s Beckton facility and an increase Group capacity

Positive outlook for 2017 H2 and beyond

  • Trading has continued positively in the second half
  • Negotiations and due diligence with principal acquisition targets progressing well

Alex Borrelli, the Chairman, commented:

“We are pleased to have successfully raised a net £4 million pursuant to the Group’s AIM listing in August and we welcome our new shareholders.  The business is progressing well, like-for-like revenues have increased substantially and all divisions continue to prosper with strong organic growth.

“We have a strategy to grow through developing our existing core activities and by the acquisition of complementary businesses that also potentially add new geographic territories, enhance our current base of customers and/or add new services.  We are in advanced discussions with certain target companies, as noted in the Company’s Admission Document, which if acquired should provide synergies and cross-selling opportunities as well as being earnings enhancing.

“Following the positive start to the year, the Board is pleased to announce its interim dividend in line with our progressive dividend policy and we remain confident in the outlook for our full-year results for 2017.”


Xpediator Plc

+44 (0) 330 043 2395

Stephen Blyth, Chief Executive Officer

SP Angel Corporate Finance LLP (Nomad and Joint Broker)

+44 (0) 20 3470 0470

Jeff Keating

Caroline Rowe 

Cantor Fitzgerald Europe (Joint Broker)

+44 (0) 20 7894 7000

David Foreman,

Callum Butterfield (Corporate Finance)

Mark Westcott, Alex Pollen (Sales)


+44 (0) 20 3151 7008

Tim Robertson

Toby Andrews

For more information visit: www.xpediator.com



CEO Statement


I am pleased to present Xpediator’s maiden results as a public company for the six months to 30 June 2017.  We have made good progress in the first half of the year with all our key divisions showing positive revenue and profit growth.

Xpediator is an international freight forwarding company operating in the supply chain logistics and e-Commerce fulfilment services sector across the UK and Europe with a particular focus on, and expertise in, Central and Eastern European (“CEE”) countries.

The Group has three main business areas: Freight Forwarding Service; Transport Support Solutions; and Logistics & Warehousing. The Group employs over 600 people, with operational headquarters in Braintree, Essex, and country offices in Bulgaria, Lithuania, Estonia, Macedonia, Montenegro, Moldova, Romania and Serbia operating across a total of 22 sites. This network of offices provides regular road transport support solutions, air courier and sea freight services linking Eastern Europe, the Balkans and the Baltics with Western Europe, together with logistics and warehousing activities in the UK and Romania.

On 11 August 2017, the Company successfully listed on AIM raising net placing proceeds of £4 million to support the Group’s organic and acquisition led growth strategies.

Financial Review

The Group generated revenues of £49.1m during the six months ended 30 June 2017 (H1 2016: £31.5m), adjusted operating profit of £1.34m (H1 2016: £1.08m) and unadjusted profit after tax of £0.53 million (H1 2016: £0.16 million). This represents an increase of 24% in operating profit before exceptional items and an increase in turnover of 56% when compared to 2016.

EPS has increased to 0.50 pence from a loss of 0.12 pence and adjusted EPS before exceptional items in the period has increased to 0.90p (H1 2016: 0.46p). An adjustment was made for non-recurring Group restructuring and IPO costs totalling £331,000 for the six months ended 30 June 2017 and £458,000 for the same period in 2016.

The Group’s overheads increased during the period, principally due to costs associated with the AIM listing.

The finance function has been expanded, including the appointment of a Group Financial Controller in the UK and the creation of internal audit and M&A resource.  Other Plc related costs, such as non-executive director fees are also now being incurred. This will see the overhead costs increase slightly in the second half of the year to reflect the full six month period of these costs.

The successful listing of the business is expected to enable the completion of two M&A targets, which the Board believes will significantly increase the activity of the Group and substantially enhance the earnings per share.

Reflecting confidence in the future, the Board has announced the payment of an interim dividend of 0.347p per share. The dividend will be payable to shareholders on the register on 6 October 2017 with the ex-div date being 5 October 2017 and the dividend being paid on 27 October 2017.

Operational Review

Freight Forwarding Services                        Revenue H1 2017: £39.1m                             H1 2016: £25.2m

                                                                            Operating profit H1 2017: £0.7m                H1 2016: £0.6m

Freight forwarding services are provided under the Delamode brand. The freight forwarding services division specialises in connecting CEE countries and the UK. In the period under review, the freight forwarding services division increased revenues by 55%.

This strong trading performance has been driven primarily by an increased focus on full load transport movements. Whilst freight forwarding is a competitive market, Delamode has been operating successfully for more than 30 years and benefits from operating an asset-light, broking model and taking advantage of its proprietary database of 3,000+ hauliers to buy in resources at the best possible price to service each contract and thereby maintain or improve upon our target returns.

The Group’s e-Commerce fulfilment provider, EshopWedrop is progressing in line with management expectations. Management is actively seeking franchisees who are courier companies with the ability to provide final mile delivery and the marketing required to develop our e-Commerce fulfilment services. Once we have established a more comprehensive franchise network across our main markets, we believe EshopWedrop will represent a compelling offer to major retailers.

After five years of investment and organic growth of the Group’s Serbia operations, this business unit has performed exceptionally well during the period and is trading significantly ahead of budget for 2017. Given current and expected further growth of this unit, the Group will continue investing in Serbia as well as neighbouring countries to accelerate this growth and capitalise on its early mover advantage.

Transport Support Solutions                           Revenue H1 2017: £2.2m                               H1 2016: £1.6m

                                                                               Operating profit H1 2017: £1.1m                  H1 2016: £0.8m

Transport support solutions, trading under the Affinity brand, provide bundled fuel and toll cards, financial and support services for hauliers in southern Europe.  Affinity is an agent of DKV in Romania, one of the world’s largest fuel card providers and provides the DKV fuel card across the Balkans to a database of approximately 1,500 Eastern European hauliers and 11,500 trucks. In addition, Affinity provides a “one-stop-shop” of transport support solutions including roadside assistance and ferry bookings.

Affinity’s commercial model fits well within the Group as many of the hauliers who are customers of Affinity also supply haulage services to Delamode a key factor that enables the Group to have a good understanding of its customers/suppliers, which underpins the strategy to provide further financial services such as insurance and leasing.

Affinity generated record revenues during the period, increasing 39% to £2.2 million.  The majority of this growth was from the increased provision of fuel cards, particularly under our Affinity Lite offering.

Logistics & Warehousing                              Revenue H1 2017: £7.7m                               H1 2016: £4.7m

                                                                           Operating profit H1 2017: £0.2m                H1 2016: £0.0m

Logistics & Warehousing comprise:

  • distribution hubs in the UK and southern Europe providing over 39,000 sqm of shared user space;
  • pallet delivery services, the Group is the master franchisee of a fast-growing pallet delivery network in Romania which trades under the Pall-Ex brand; and the recently acquired EMT business which is based in London and specialises in fashion logistics services.

Pall-Ex contributed strongly during this period and is now moving over 40,000 pallets of freight every month. Post period end, the Group won the franchises to operate in Hungary and Moldova and expects to commence trading as Pall-Ex Hungary in Q4 this year and Moldova in the second quarter of 2018.

Our freight logistics services network on the continent is centred around Romania where it can interlink with Pall-Ex. In April 2017, we opened our 10th warehouse in Bucharest, a state of the art facility with cross-dock capability for Pall-Ex and significant storage for freight logistics services customers.

Warehousing activities in the first half of the year was respectable in the UK given a challenging market place but improved second-quarter results enabled the division to generate a small profit. Following the acquisition of EMT in March 2017, the textile part of Delamode warehousing activities has now been integrated to EMT’s warehouse in Beckton. This has released capacity in Delamode’s Braintree site to accommodate current client growth. We are confident in the growth prospects for this division over the next two years as we look to expand the UK warehousing activities through e-Commerce fulfilment services and further building out of our retail supply chain logistics and fashion warehousing solutions services.


We operate in a growing sector driven by economic growth especially across the CEE region and wider global trends such as e-Commerce which is increasing the frequency of goods to be delivered. These trends are enhancing our organic growth strategies across all our divisions which are yielding positive results and we are confident these will continue in the second half of 2017 and beyond.

We also look forward to reporting on further progress on our M&A strategy, noting that current discussions and due diligence are progressing well in respect of target businesses (as previously outlined in Xpediator’s admission document).

Stephen Blyth
22 September 2017



 Financial Update

The six month period to 30 June 2017 was an exciting time for the Group, during which it successfully prepared for its admission to AIM.


As part of this preparation, the Group restructured its share capital and performed a share swap, which resulted in the ultimate beneficiaries of Delamode Group Holding Limited swapping their shares for shares in Xpediator Plc.

As part of this process, Xpediator Plc issued 4,000,000 ordinary shares of £1.00 each to the shareholders of Delamode Group Holdings Limited in the same proportion as their shareholding in Delamode Group Holdings Limited on 25 May 2017. The merger method of accounting has been used to consolidate the results of Xpediator Plc and Delamode Group Holdings Limited and subsidiaries. Therefore the comparatives used within the consolidated interim financial statements are those of Delamode Group Holdings Limited. In the current period, however, the results are those of the Group including Xpediator Plc.


The underlying revenue for the six months to 30 June 2017 was £49.1 million, an increase of 56% on the comparable period (2016: £31.5 million).

Turnover increased across all of our main countries of operations.  UK turnover increased by 46% to £11.5 million, representing approximately 24% (H1 2016: 25%) of Group revenues.  This was principally due to the inclusion of Easy Managed Transport Limited (“EMT”) following its acquisition on 10 March 2017.  Romania, Lithuania and Bulgaria each grew revenues from between 24% and 109%, much of this growth due to the successful and ongoing focus and development of the full load activity in the Baltic and East Balkan regions.

Operating profit

The reported operating profit for the period was £1,007,000, (H1 2016: £619,000), an increase of over 63% year on year which is in line with management expectations. The operating margin for the period was 2.1% slightly up on the same period last year (H1 2016: 2.0%).

The adjusted operating profit for the period, excluding the costs associated with the listing, returned a result of £1,338,000, (H1 2016: £1,077,000) upon 2016 by 24%. This generated an operating margin of 2.7% for the period, down on the 2016 levels of 3.4%.  The increase in the full load activity, which yields a lower margin reflecting the required levels of risk and resources, has reduced the operating margins.

The growth of the business has led to a significant number of deliveries over the period end. Revenue is recognised on final delivery, resulting in deferred revenue of £926,000 (H1 2016: 535,000) and deferred operating profit of £116,000 (H1 2016: £65,100), which will be recognised in the second half of 2017. Such deferrals will be significantly smaller at the year-end date due to the reduced volume of trade occurring in the last week of the calendar year.

The ongoing volatility of the Sterling currency has resulted in a negative impact on the results of the Group with both Delamode Plc and Affinity Transport Solutions incurring significant currency losses in the period to 30 June 2017 of £148,000 (H1 2016: £197,000).

The Group is currently enhancing its treasury function to reduce the ongoing risks of currency losses.

Financing costs

The trading net interest expense for the six month period was £208,000, (H1 2016:  £111,000). The reported net interest expense totalled £296,000, which included a charge of £86,000 relating to the “unwinding” of the difference between the expected present value of the deferred consideration and the expected future value relating to the acquisition of EMT. This is a non-cash interest charge and is non-trading related.

During the period the Group entered into a short term loan of £2.5 million to assist with financing the acquisition of EMT and this loan has been fully repaid post the balance sheet date.


The tax charge for the period to June 2017 was £182,000 compared to £280,000 for the same period in 2016. This equates to an effective tax rate of 26% compared to 55% for the period to 30 June 2016.

The effective rate is significantly impacted due to the exceptional costs arising from the restructuring in 2016 and the listing costs and non-cash finance charge in 2017. Excluding these items, the Group had an effective tax rate of 16% during the period, (H1 2016: 29%).

Balance Sheet

The Group had net assets of £3.86 million as at 30 June 2017, (31 December 2016 £3.56 million)

The Group’s cash position has increased to £6.9 million as at 30 June 2017 (31 December 2016: £5.4 million). However, net current assets were negative £0.9 million as at 30 June 2017 (31 December 2016: positive £3.4 million).  This reduction, however, was principally due to the timing of the acquisition of EMT, which was part-funded by bank borrowing £2.5 million. Accordingly, Group total borrowings increased to £8.7 million as at 30 June 2017 (31 December 2016 £5.4 million).

This £2.5 million loan has since been repaid after the period end. In addition, part of the deferred consideration relating to the acquisition of EMT of £1.3 million is included in current liabilities.


The directors are declaring an interim dividend of 0.347 pence (H1 2016: nil) per share totalling £350,000 (H1 2016: £nil) to be paid on October 2017. This dividend has not been accrued in the consolidated Statement of Financial Position.


On 10 March 2017, the Group acquired 100% of the issued share capital of EMT for £5.1 million plus deferred consideration based on a two year earn-out period.  The initial consideration included a payment of £2.6 million for the cash in the business.  The deferred consideration is subject to the performance of the business, payable in new Xpediator shares and is subject to a maximum payment equivalent to £2.85 million and a minimum payment of £1.66 million.

EMT has been consolidated into the financial results of the Group from the date of acquisition and has been accounted for under acquisition accounting principles.

Richard Myson
22 September 2017


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