Xpediator puts the hammer down in the final two months of 2020
Xpediator PLC (LON:XPD), the freight management firm, expects to deliver profits for the year just ended that are significantly ahead of market expectations.
Following higher than anticipated demand for its services in the UK and Europe during November and throughout December, the group now expects to report adjusted profit before tax of about £7.2mln for 2020, up 40% on 2019’s £5.15mln.
The group said it traded well ahead of budget in the final two months of the year with strong performances from Central and Eastern European (CEE) countries, particularly Lithuania.
The group saw positive contributions from Import Services, which benefited from high volumes amongst its customers in the toy sector, and an uplift in activity ahead of Brexit in UK freight forwarding.
There was also some improvement in those areas of the business most affected by the pandemic as road traffic volumes increased, boosting demand for the group’s fuel and toll card offerings.
Similarly, the group’s pallet distribution network in Romania under the Pall-Ex brand is performing strongly again up above pre-coronavirus levels.
Having enjoyed a Brexit boost at the end of the year, transport volumes have been dampened in the current month by administrative changes caused by Britain’s exit from the European Union but even this presents an opportunity for Xpediator.
“In essence, there has been an increase in administration and it is taking time for businesses and customs officials to adjust. For Xpediator, as anticipated this is an opportunity to increase administrative support to our clients to enable them to manage the new environment which in time will settle down,” the company said.
“We have focused hard on our core services and by doing so attracted more customers, then combined this with delivering a consistently good customer service. We still have some way to go to reach our potential but it has been a good start,” said Robert Ross, the chief executive officer of Xpediator.
“2021 has begun well across the group during which we expect to benefit from the permanent £0.5mln of cost reductions made in 2020, the first full year of revenues from the Nidd Transport acquired in October and the ongoing uplift in demand for our services across the group,” he added.