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Thanks, Dartron, I agree they are somewhat shielded from the inflation risks if anything the increase in freight costs as a result of inflation will add to their bottom line with increased turnover and thus more revenue. The one-off costs for the new Southampton warehouse were probably the only big distractions
The adjusted earnings per shares are taken before exceptional items, and during the year the company encountered 2.6M of exceptional items (note 27):
During the year, the Group incurred non-recurring costs totalling £2,610,000 (2020 - £1,377,000), which relates primarily to costs associated with the delay in relocating the warehouse of Delamode International Logistics Limited in Southampton.
So again shows that the basic earning per share is quite misleading as includes the exceptional items.
I prefer profit before tax as companies often try to maximise losses like amortisation, depreciation ect, to reduce tax bills.
Adjusted profit before tax of £9.1m, up 25% (2020: £7.2m) - Thats the one to use as a guidance IMO.
So you could say XPD share price is now 5x earnings...
The profit before tax was higher, but there was more tax paid than 2021, so that's part of it - the profit after tax was lower this year than 2021.
£1,877 vs £3,060
Next, part of that profit, was not attributable to the parent company. This is because there are minority owners in the subsidiary's (See table 15). For example 20% of Delamode Baltics UAB is not owned by the parent company.
I see some other comments about accounting from clearly mis-informed posters, I would ignore this. These accounts are audited and the revenue / profit fits entirely within the business model of low margin freight forwarding / warehousing.
If you were expecting something else, perhaps familiarise yourself with business model of the company -
For all businesses in 2022, it will be essential to manage inflationary costs resulting primarily from increased energy prices. To reiterate, as an asset light operator, Xpediator is in an advantageous position versus many as we source transport for freight forwarding as required from multiple external hauliers who carry the risk and collectively ensure the needs of the customers are met. Increased costs of transportation are largely borne by the haulier and customer such that we are relatively protected.
In other words, this is a low margin business, as these guys do not do the actual work.
Please correct me if I have any of this wrong.
Bought more today.
Im sure the directors are nicking money from this company’s pathetic profits on revenue and ridiculous cost of sales numbers
My view is that these are impressive results, unquestionably so, with much to look forward to in the medium to long term.
I can't explain the fall in profits, but as a passing thought, there have been ongoing issues with the Becton wharehouse element of the business, mentioned in several of the past RNS statements. The Becton problems are again only mentioned in passing, linking poor performance to high street retail sector issues. But I've yet to find anything that quantifiies the level of loss in this part of the business,. It would have had to have been pretty substantial to have had an impact across the business as a whole. The 'smoothing' of turbulent times across the business also seems to have had some impact on the level of cash flow. So I'm not surprised by today's fall, particularly given the CEE exposure, even if it has to date been well managed.
Anyone able to explain the 80% fall in eps?
I can never understand why with such large revenues this company declared such low profits. I bet once again the cost of sales are declared as a huge percentage of costs. There is either something strange about this or they are not running efficiently.
Although this doesn't sound great, I think this might not be anything to worry about...
Seems strange that the founder would resign his position as deputy chairman, but looking at his history Stephen has been involved with many companies - and still is. He has resigned from many for what ever reason. I believe he was CEO at one time. Reading the Investors chronical Feb 2021 Alpha report, it does speak of him (a chartered accountant) resigning as CEO for health reasons.
The key thing here is that he owns** +25% of the shares in XPD through an investment company called Cogels Investments limited. Reading the RNS, he will be appointing a replacement NED to the board. He basically still owns a huge controlling interest in the company, and has not sold any shares.
**Think the Alpha report may be out of date regarding size of holding, it looks like 56% to me.
Mark Whiting doesn't come up as holding a significant amount of shares, but it is interesting that both people have association with the same other companies - i.e. NED at smiths news. He also appears to have recently founded a non related business.
Could just be the a clean time to exit at the end of the tax year.
They could have explained it better, but hey ho. Results look great, business looks sturdy. Management team look very strong. In fact, I am building a position here at these low prices. I expect we would have seen heavy selling if there was an issue here, rather than resignations. Interesting the CEO who resigned (Rob Ross) has not updated his Linked in profile.
I hope we get a good update soon, with a new CEO appointed and director share buying. Results end of April, though trading update already released as upbeat.
Hi Agricore I was wrong expecting the SP to remain north above 50p and surprised to see the SP dropping and dipping below the 50p mark again having said that your last comment ref 2/3/4/ below basically said that they are paying customer's transport bills by paying the hauliers/suppliers upfront this is far from normal nor the industry standard and one in which if so would mean the business models has taken a turn and moved on from being a traditional freight forwarder relying on standard commission to becoming a so-called freight 'operator' and as such I am sure you are aware there is a big difference in being a 'broker' as opposed to becoming a principal i.e. charterer. Anyways as always hope ST projections shall come through eventually, all the best GLA
Hi Svend - this is mainly a temporary working capital nothing more.
1/ They have invested in new software (freight forwarding)
2/ They are paying suppliers ahead of payment terms e.g. paying in advance rather than paying 30 days from date of invoice.
3/ Their customers are being given more generous payment terms e.g. offering 60 days from date of invoice instead of 30.
4/ During 2022 they will revert back to 30 days terms for customers and suppliers.
Why? Because introducing new systems can be disruptive and have glitches so they are "smoothing" its introduction by offering customers and suppliers leeway to bear with them......
XPD are a smart business to do that in my opinion. From experience :)
GLA and great write up by ST tonight. We'll see this bounce further tomorrow. Back towards 80p.
Hi jackie1 - Very encouraging trading update depending on the interpretation of the following statement:
''Advanced payments to secure key supplier performance and additional cost associated with a new freight forwarding operating system in the UK means the Company expects to report a net debt position £4.9 million, as at 31 December 2021. Alongside the new operating system and implementing new processes, receivables have increased which will unwind in 2022 as these processes are embedded.'' what is your takeaway?
Xpediator (AIM: XPD), a leading provider of freight management services across the UK and Central and Eastern Europe, is pleased to confirm trading, for the 12 months to 31 December 2021, has continued strongly across all three divisions and expects to deliver revenues in excess of £300 million (2020: £221 million) and adjusted profit before tax well in excess of £8.5 million (2020: £7.2 million), in line with the upgraded guidance given in June 2021.
Revenue growth continued into the second half of 2021, with strong increases in Freight Forwarding revenues, the largest division of the Group, driven primarily by CEE markets, increased sea freight volumes and an uplift from UK customs clearance. Lithuania and Bulgaria are again expected to be significant contributors to the uplift in performance.
Pallex Romania has contributed to another positive trading period for the Logistics and Warehousing division. In addition, the recent partnership with e-Commerce fulfilment expert, Synergy Retail Support, has introduced new customers into the Braintree site (Essex) and other Xpediator warehouses.
Agricore well done perfect timing indeed doubt we shall the SP below 50p again anytime soon.
This morning's announcement on expansion tells you all you need to know about the forthcoming trading update. Glad I topped up here on the recent drop.
Stu - Agree with the silence from the company in terms of any fresh RNS is not helping the SP recover at all. I am still puzzled why XPD's board have not clarified the reason for their CEO's sudden departure. IF and it's a big IF the expected profits have been used or 'consumed' due to the CEO's management then the road to recovery could hit another roadblock on their way to further expansion. Would be nice to get a fresh trading update soon - Happy New Year All Svend
Svend, personally just had my eye on XPD for a while and was amazed at the drop from around 80p to 40p in 6 months - with all seemingly going well for the company too (Maybe us private investors are not getting the full story?) but seemed too good an opportunity to miss, only bought modestly and might have initially bought more except for being committed elsewhere currently...
Slight concern at a lack of RNS releases from XPD, nothing much that can be classified as 'good news' operationally since around early August, which may have in part led to Share Price slide, investors getting bored and moving elsewhere, whilst taking profits with them perhaps - and as an 'acquisitive' company nothing doing of late about expansion??
On the whole positive however, and confirmation of the expected £8.5m+ pre tax profit is eagerly awaited
Happy New Year All
Stu
StutGGTTH/M.. > From a tech point of view the SP has closed out the Gap perfectly on the daily charts going back to February 2021 as long as the current low @ 38p is not violated then it's good to go from here IMOO DYOR & Happy New Year
Yes, interesting that the share price has been moving up without news. Well, not news that us mere mortals get to know about, but there could be better news after Christmas perhaps. All it needs is confirmation that the lorry driver shortage did not affect trading, and the SP will move back up quickly.
Thanks for responding, drop seems overdone to me, but not much info by way of RNS lately not helping the SP either...
I think the drop is over concern regarding lorry driver shortage, and director change.
Good news coming perhaps.
Modestly added XPD lately, everything I've read seems positive - anyone with any explanation for roughly 50% SP drop in 6 months?
Had my eye on XPD SP for a while, happy to buy at this level
Stu
B1428 > It sure has come back to life and with some strength!
is resurrected! what happened?
and in any case this title is worth more!
https://simplywall.st/stocks/gb/transportation/aim-xpd/xpediator-shares
Okay Thanks kindly Towers, Sorry if I put you in the spotlight