Xpediator’s results show a “resilient performance”
Xpediator Plc, a provider of freight management services across the UK and Central and Eastern Europe, has announced its unaudited condensed interim results for the six months ended 30 June 2020.
H1 Financial highlights
• Group turnover of £99.6m (2019: £102.4m) with overperformance in Q120 offset by the impact on trading from Covid-19 in Q220.
• Adjusted profit before tax1 of £2.1m (2019: £2.0m) reflecting a resilient first-half performance benefitting from early cost reductions in March 2020, having an asset light structure and the diversity of businesses and customers across our Central and Eastern European (CEE) and UK footprint. • Adjusted earnings per share of 1.03 pence (2019: 1.25 pence).
• Basic loss per share of 0.25 pence (H1 2019: loss per share of 0.04 pence).
• As at 30 June 2020 net cash was £4.3m (31 December 2019: £7.0m) after paying £3.7m in deferred acquisition payments.
• Strong net cash generation from operations of £5.4m (2019: £5.5m). • Interim dividend increased to 0.45 pence per share (H1 2019: 0.28 pence).
• Freight Forwarding revenue increased 2.2% to £78.4m (2019: £76.7m) generating operating profit of £2.6m (H1 2019: £1.4m), driven by growth in both CEE and UK markets and identifying margin enhancing opportunities through the Covid-19 crisis.
• Transport Solutions impacted by Covid-19, with revenue decreasing by 19.8% to £2.5m (2019: £3.1m) and operating profit to £0.9m (2019: £1.3m) natural reflection of the reduction in traffic and therefore lower requirement for fuel cards, trend now reversing with increase in traffic.
• Logistics and Warehousing revenue decreased by 16.9% to £18.7m (H1 2019: £22.6m) giving an operating profit of £0.6m (2019: £1.2m), while an improvement in operating margin a mix of temporary factors arising from Covid-19 reduced revenues despite another strong performance from Pallex.
Alex Borrelli, Chairman, commented: “These results show a resilient performance and demonstrate that there has been good demand for our services both in the UK and on the continent despite the impact of Covid-19. Where business units have been impacted by the pandemic, the effect is largely temporary and since the half-year trading across all three divisions is getting close to normal. That said, the Group is still mindful that a second wave of Covid19 remains a possibility and we continue to review our contingency plans.
Of the cost savings made in March, c.£0.5 million will be maintained as annualised savings which will feed through to an improvement in operating profit, a key ongoing focus alongside strong cash generation across the Group. The pandemic also showed the value of being an asset light and diversified business not reliant on any one sector, market or customer. Particularly impressive was the performance of our Freight Forwarding division as Lithuania, Bulgaria, Estonia, Serbia and our domestic business in the UK showed strong margin growth and identified some good opportunities through the Covid-19 crisis. These businesses have worked in conjunction with our fuel card business (Affinity), which has provided a competitive advantage in identifying those hauliers who are able to run key routes at good rates.
Overall, whilst the impact of Covid-19 reduced profitability in the period, the Company is now trading close to normal levels and has started the traditionally stronger second half of the year well.”