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(“Xpediator” or the “Group”)
Trading Update FY 2017
Xpediator, (AIM: XPD) a leading provider of freight management services across 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, Transport Services and Logistics & Warehousing – generated organic revenue growth in FY 2017 compared to the prior year.
Freight forwarding, 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 division continues to benefit from the switch to focus on full-load movements.
Transport services which trades 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.
Logistics & Warehousing
The Group’s third division, Logistics & Warehousing, 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 division also includes pallet distribution 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 capability, UK port offices for potential post Brexit customs work and, through Regional Express, international ecommerce capability.
The Company continues to evaluate a healthy pipeline of further complementary acquisition targets.
Stephen Blyth, Chief Executive of Xpediator, said:
“Road transportation is 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 transportation sector due to equipment and driver shortages, however we are well placed to ensure continued 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 management 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 business 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: firstname.lastname@example.org
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 provider of freight management services. Established in 1988 by CEO Stephen Blyth today the Company’s international network of offices provides regular and direct services linking Eastern Europe, the Balkans and the Baltics with Western Europe, 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 their three main areas: freight forwarding, logistics & warehousing and transport services. 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