Xpediator's trading strength continues through third quarter

The AIM-traded company said that as a result, it remained on track to meet full-year management expectations of adjusted profit before tax of £9m.

It said trading patterns in the third quarter continued the trend in the first half, with strong performances from the European freight forwarding operations, especially in Lithuania, Bulgaria and Romania.

Affinity Transport Services and Pall-Ex Romania also continued to perform well.

The UK freight forwarding operation, Delamode Anglia, was being re-organised under the successful freight forwarding template first developed in Lithuania.

Xpediator said the financial performance of UK warehousing remained “weak”, but changes to operating processes across UK logistics were progressing as planned, and early signs described as “encouraging” for both of the businesses.

The firm’s net debt position had “stabilised”, and management said it expected it to be “broadly unchanged” from its £8m position as at 30 June.

Reduced central costs and improved financial performance in the second half in the UK businesses had helped to increase generated cash, which was being used to reduce trade payables to more operationally acceptable levels across the group.

“The business is comfortably on track to meet management profit expectations for the full year with demand for our services remaining strong across all three divisions,” said chief executive officer Mike Stone.

“We have commenced our plans to reduce debt, transform Delamode Anglia and make UK logistics profitable and look forward to updating on progress achieved in due course.”

At 1151 GMT, shares in Xpediator were up 14.29% at 24p.

Reporting by Josh White for Sharecast.com.