The Xpediator Model

Click the wheel to learn about the fundamental principles behind Xpediator’s business model.

E xpansion by acquisition Organic growth O ur strategy Demand growth for transport

Our strategy

  • Our Freight management and transportation services are in greater demand than ever before.
  • Led by a strong committed and experienced management team, Xpediator is able to take advantage of the current market trends across the UK, Europe and the fast growing CEE markets.
  • With over 10,500 customers, Xpediator has a highly diversified customer base and not one customer generates more than 2% of Group turnover.
  • Utilising its asset-light, scalability and risk adjusted business model, the Company has grown rapidly through a mix of acquisition-led and organic growth, particularly in its Baltic and Balkan divisions.
  • For shareholders, the Board is focused on generating attractive returns through a mix of capital and dividend income growth.

At a glance

With revenues increasing to £221.2 million, which is up by 3.7% on the prior year, we delivered adjusted profit before tax substantially ahead of last year at £7.2 million, up by 38.5%. The Group’s asset light business model proved to be very resilient during 2020 and there are strong signs of further growth being delivered in 2021. Strategically, Xpediator remains focused on establishing its network of freight management companies across the UK and Europe with a particular expertise in the fast growing Central and Eastern European (“CEE”) regions. Recognising the market opportunity, the Group is seeking to exploit the growth across the CEE regions. In terms of Brexit, following the United Kingdom’s exit from the European Union, the demands for custom clearance services have increased, and the Group expects additional revenue streams from this, with further profit generation as volumes increase. Importantly, the Company continues to have a good pipeline of acquisition opportunities which meet the criteria of enhancing the Group’s geographical capabilities, developing our existing operational locations and extending the Group’s international presence in air and sea transportation. Overall, the Group is in a strong position.

Whilst Covid-19 continues to challenge us and market conditions remain competitive, we are focused on delivering exceptional customer service. Demand for our freight management services, logistics and transport solutions and  services remains high and following a strong 2020 final quarter. Demand for freight management in the UK and CEE countries was extremely buoyant during the year. Whilst volumes reduced during March and April 2020 because of a number of stay-at-home policies throughout Europe, Covid-19 has led to changes in consumer trends that have driven economic growth within our core markets.

Revenues

3.7%

Increase

2020

£ 221.2 million

2019

£ 213.2 million

Adjusted Profit before Tax

+38.5%

Increase

2020

£ 7.2 million

2019

£ 5.2 million

Reported Profit Before Tax

80.9%

Increase

2020

3.9m 

2019

2.2 million 

Adjusted EPS

37.1%

Increase

2020

3.84 p

2019

2.80p

Xpediator “in a nutshell”

Our business is about the transportation of goods from one destination to another often across international borders by road, sea and air. We do this by acting as a broker using our scale to achieve competitive prices from hauliers to move our customers goods and earning a commission on each journey organised.

We do not currently own a fleet of trucks; instead we are an asset light business with low fixed overheads, meeting the requirements of our customers by sourcing capacity from the market. This low risk approach has been fundamental to the Company’s success over the last thirty years.

The Group also has +90,000 sqm of warehousing in the UK and Europe used by our customers to provide storage and logistics services and in Romania we provide fuel and toll cards to 12,700 truck drivers as well as roadside assistance and ferry crossing bookings. Also, in Romania, Xpediator operates the Pall-Ex franchise which is a successful national network enabling the swift transport of palletised goods around the country.

The Group is expanding rapidly both organically and by acquisition moving into new markets and adding new services, in particular, developing e-commerce and fulfilment activity and adding new services to hauliers such as truck leasing.