22 February 2018
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” or the “Group”)
Trading Update FY 2017
Xpediator, (AIM: XPD) a leading freight management services provider in the UK and Europe, is pleased to announce a trading update for the year ended 31 December 2017 (“FY 2017”).
Group revenues for FY 2017 will be up by approximately 59% to £116 million (2016: £72.8m) reflecting approximately £10 million of revenue contribution from the three acquisitions completed during 2017, and positive performances from all three of the Group’s trading divisions. Trading profit is also expected to be significantly ahead of the previous year despite investment in strengthening the Company’s key operating functions to support the current and future growth of the business. The Group trading results for FY 2017 are expected to be in line with market expectations.
Xpediator intends to announce its final results for FY 2017 in May 2018.
2017 was a transformational year for the Group during which it successfully listed on AIM, raised an aggregate of £7.8 million in new equity investment (before expenses) and completed the acquisition of three complementary and earnings accretive businesses – EMT Logistics, Benfleet Forwarding and Regional Express. All three of the Group’s operating divisions – Freight Forwarding Services, Transport Solutions, Warehousing and Logistics – generated organic revenue growth in FY 2017 compared to the prior year.
Freight Forwarding Services
A freight forwarding company which trades under the Delamode brand and is the Group’s largest division by revenues enjoyed a good year with particularly strong demand from the Balkan, Lithuanian and Bulgarian markets. The freight forwarding services division continues to benefit from the switch to focus on full-load movements.
Transport solutions services which trade under the Affinity brand and provides bundled fuel and toll cards had another strong period benefitting from the general increase in activity across the CEE region.
Warehousing and Logistics
The Group’s third division, Warehousing and Logistics, saw the opening of a state of the art warehouse in Romania in August which has already reached full capacity, with further space currently being obtained, and additional warehouse space added through acquisition in the UK. This warehousing and logistics division also includes palletised freight delivery under the Pall-Ex franchises which had a positive period under the main franchise in Romania.
The three acquisitions have expanded the Group’s operating capabilities by adding UK based reverse logistics (garments), expanded geographically beyond the core CEE markets into Southern Europe and China, sea freight services capability, UK port offices for potential post-Brexit customs work and, through Regional Express, international e-Commerce fulfilment capability.
The Company continues to evaluate a healthy pipeline of further complementary acquisition targets.
Stephen Blyth, Chief Executive of Xpediator, said:
“Road transport solutions services are growing across Europe driven by GDP increases underpinning commercial confidence together with the increasing consumer switch to ordering goods online. There is anticipated to be a shortage of capacity in the European transport solutions sector due to equipment and driver shortages. However, we are well placed to ensure continued freight transport services with a wide supplier base in addition to our customer base in Affinity. These are solid foundations for Xpediator to continue to grow and achieve our objective of becoming a European leader of the mid-market freight transport services sector.
We are capitalising on the positive market environment and growing organically whilst executing our strategy of being a market consolidator through acquiring sub-scale businesses which are immediately earnings enhancing with the potential to flourish as part of the Group. I’m pleased with the performance of each of the three businesses acquired during the year and their integration within the Group is proceeding in line with management expectations.
We are also delighted to welcome Michael Grange into a new role as the Group’s Chief Information Officer. Michael joins after many years working for Tesco and is part of our investment in supporting the current and future growth of the business.”
An interview of Xpediator CEO, Stephen Blyth, discussing today’s Trading Update with Vox Markets will be available today from 12:30. To listen go to https://www.voxmarkets.co.uk/company/XPD or visit the Company’s twitter account https://twitter.com/Xpediator.
Xpediator plc Tel: +44 (0)330 043 2395 Email: email@example.com
Stephen Blyth, Chief Executive Officer
Richard Myson, Chief Financial Officer
SP Angel Corporate Finance LLP (Nominated Advisor & Joint Broker) Tel: +44 (0)20 3470 0470
Cantor Fitzgerald Europe (Joint Broker) Tel: +44 (0)20 7894 7000
David Foreman (Corporate Finance)
Caspar Shand Kydd, Alex Pollen (Sales)
Novella Communications (Financial Public Relations) Tel: +44 (0)20 3151 7008
Xpediator is a well-established international integrated freight management services provider. Established in 1988 by CEO Stephen Blyth today the Company’s international network of offices provides regular and direct freight forwarding, air courier and sea freight services linking Eastern Europe, the Balkans and the Baltics with Western Europe, alongside its logistics and warehousing activities in the UK and Romania. The business offers integrated freight management services within the supply chain logistics and e-Commerces fulfilment sector, through their three main areas: freight forwarding services, transport solutions, logistics and warehousing activities. With headquarters in Braintree, Essex and country offices in eight CEE countries across 22 sites, the Group currently employs over 690 people and was successfully listed on London’s AIM market in August 2017.
For more information, please visit: www.xpediator.com