Strong first half continues through 2021 for Xpediator

The AIM-traded firm said that as a result, it expected to deliver revenues of more than £300m, up from £221m in 2020, with adjusted profit before tax rising to more than £8.5m from £7.2m, in line with the upgraded guidance it gave in June.

It said revenue growth continued into the second half of the 12 months ended 31 December, with “strong increases” reported in freight forwarding - its largest division - driven primarily by central and eastern Europe markets, increased sea freight volumes and an uplift from UK customs clearance.

Lithuania and Bulgaria were again expected to be “significant contributors” to the uplift in performance.

Pallex Romania contributed to another positive trading period for the logistics and warehousing division, with Xpediator’s recent partnership with e-commerce fulfilment firm Synergy Retail Support also introducing new customers into the Braintree site in Essex, and other company warehouses.

The board said the consolidation of Southampton warehousing activity was completed in the year, with “substantial benefits” of the integration and additional 200,000 square feet of space expected to be realised in 2022.

Transport support services, trading primarily under the Affinity brand, saw the first-half recovery continue into the second half of the year, in part due to increased freight movement and expansion into the Balkans, despite the reduction in road transportation due to the pandemic.

Advanced payments to secure key supplier performance and additional costs associated with a new freight forwarding operating system in the UK meant the company expects to report a net debt position of £4.9m as at 31 December.

Alongside the new operating system and implementing new processes, receivables had increased, which the board said would unwind in 2022 as those processes were embedded.

Xpediator policy to grow both organically and by acquisition, in place since listing in 2017, was continuing to progress with a number of acquisition targets identified in 2021 which were at varying stages of board consideration.

If any of them are completed in 2022, Xpediator said it expected they would “significantly increase” the company’s overall activity and capability.

“We see excellent potential for this business to grow organically and by acquisition,” said interim chief executive officer Wim Pauwels.

“The new warehouse in the port of Southampton will be a significant factor in 2022 together with a range of growth projects and potential acquisitions we have in progress across the business.

“We are therefore in a strong position to build upon this in 2022.”

Xpediator said it would report its full-year results for the 12 months ended 31 December in April.

At 1228 GMT, shares in Xpediator were up 8.39% at 55.28p.