17 Jul 2020 07:00
17 July 2020
XPEDIATOR PLC
("Xpediator" or the "Group")
Trading Update
Xpediator (AIM: XPD), a leading provider of freight management services across the UK and Central and Eastern Europe is pleased to provide the following trading update for the six-month period ended 30 June 2020.
Trading
The trading period has, like most of the world, been influenced by the global COVID-19 pandemic. The Group maintained the transportation of essential goods across the UK and Europe during the initial COVID-19 lock-down periods, with the Group now seeing transportation volumes moving back towards pre-COVID-19 levels.
As announced at the time of the final results, trading in the first three months was slightly up on a like for like basis and whilst trading was impacted as a result of lockdown, the Group has performed robustly during the pandemic with steady recovery since April.
The Group's trading has been assisted by the diversity of its European footprint and we have seen good performance in some of our Central and Eastern European countries that have not been as badly affected by the crisis. Activity in the logistics division has remained broadly stable and transportation services, after a natural period of reduced sales, are gathering momentum.
As a result, the business traded only marginally behind management's original expectations for the six-month period to 30 June 2020.
Actions taken to mitigate COVID-19 impact
Significant cost reductions were made at the outset of the pandemic, and in combination with the Group's existing asset light and relatively low fixed overheads model, the impact of COVID-19 on the Group's cash position and margins has been mitigated. Some of the cost reductions implemented have been temporary, such as voluntary pay reductions and furloughed staff, however a large proportion are permanent and should ensure the business remains well positioned to deliver on its longer-term growth ambitions.
Liquidity
The Group has a strong balance sheet with net cash of approximately £4.2 million at 30 June 2020 (£3.8 million at 30 June 2019), which is after the payment of deferred consideration of £3.6 million following the conclusion of the earn out periods from historical acquisitions. The Group's ongoing focus on cash collection has seen an improvement in average payment terms from customers during H1, despite the challenges of COVID-19.
Outlook
The Group continues to see trading volumes moving towards more normal levels but it is still too early to predict with any certainty how quickly our markets will recover, and we therefore remain unable to provide market guidance at this time. However, the business is financially stable and well placed to grow and capitalise on opportunities that may arise alongside the wider global recovery.
Management took swift actions at the start of the pandemic and were subsequently able to reduce the temporary pay reduction scheme from three months to two months. The Board remains focused on delivering long term value to our customers and shareholders.
The Company expects to report its results for the six-month period to 30 June 2020 in September.
The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
Xpediator plc | Tel: +44 (0)330 043 2395 |
Alex Borrelli, Chairman | Email: info@xpediator.com |
Danor Ionescu, Joint Interim CEO Robert Ross, Joint Interim CEO and Group CFO | Tel: +44 (0)330 043 2395 Tel: +44 (0)330 043 2395 |
Cenkos Securities plc (Nominated Adviser & Joint Broker) | Tel: +44 (0)20 7397 8900 |
Max Hartley, Max Gould (Corporate Finance) | |
Nick Searle (Sales)
| |
Novella Communications (Financial Public Relations) | Tel: +44 (0)20 3151 7008 |
Tim Robertson | |
Fergus Young |
About Xpediator:
Xpediator is a well-established international provider of freight management services. Established in 1988 by Stephen Blyth, the Group's international network of offices provides road, sea and air freight services, together with logistics and warehousing in the UK and Romania. The business offers integrated freight management within the supply chain logistics and fulfilment sector, through its three main areas: freight forwarding, logistics & warehousing and transport services. With headquarters in Braintree, Essex and country offices in nine CEE countries across 38 sites, the Group currently employs over 1,000 people and was successfully listed on London's AIM market in 2017.
For more information, please visit: www.xpediator.com.
Alternatively, do follow us on Twitter at @Xpediator or find us on LinkedIn at Xpediator Plc.