TIDMXPD
RNS Number : 5803F
Xpediator PLC
22 February 2018
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.
22 February 2018
Xpediator Plc
("Xpediator" or the "Group")
Trading Update FY 2017
Xpediator, (AIM: XPD) a leading provider of freight management
services across the UK and Europe, is pleased to announce a trading
update for the year ended 31 December 2017 ("FY 2017").
Group revenues for FY 2017 will be up by approximately 59% to
GBP116 million (2016: GBP72.8m) reflecting approximately GBP10
million of revenue contribution from the three acquisitions
completed during 2017, and positive performances from all three of
the Group's trading divisions. Trading profit is also expected to
be significantly ahead of the previous year despite investment in
strengthening the Company's key operating functions to support the
current and future growth of the business. The Group trading
results for FY 2017 are expected to be in line with market
expectations.
Xpediator intends to announce its final results for FY 2017 in
May 2018.
Group
2017 was a transformational year for the Group during which it
successfully listed on AIM, raised an aggregate of GBP7.8 million
in new equity investment (before expenses) and completed the
acquisition of three complementary and earnings accretive
businesses - EMT Logistics, Benfleet Forwarding and Regional
Express. All three of the Group's operating divisions - Freight
Forwarding, Transport Services and Logistics & Warehousing -
generated organic revenue growth in FY 2017 compared to the prior
year.
Freight Forwarding
Freight forwarding, which trades under the Delamode brand and is
the Group's largest division by revenues, enjoyed a good year with
particularly strong demand from the Balkan, Lithuanian and
Bulgarian markets. The division continues to benefit from the
switch to focus on full-load movements.
Transport Services
Transport services which trades under the Affinity brand and
provides bundled fuel and toll cards had another strong period
benefitting from the general increase in activity across the CEE
region.
Logistics & Warehousing
The Group's third division, Logistics & Warehousing, saw the
opening of a state-of- the- art warehouse in Romania in August
which has already reached full capacity, with further space
currently being obtained, and additional warehouse space added
through acquisition in the UK. This division also includes pallet
distribution under the Pall-Ex franchises which had a positive
period under the main franchise in Romania.
Acquisitions
The three acquisitions have expanded the Group's operating
capabilities by adding UK based reverse logistics (garments),
expanded geographically beyond the core CEE markets into Southern
Europe and China, sea freight capability, UK port offices for
potential post Brexit customs work and, through Regional Express,
international ecommerce capability.
The Company continues to evaluate a healthy pipeline of further
complementary acquisition targets.
Stephen Blyth, Chief Executive of Xpediator, said:
"Road transportation is growing across Europe driven by GDP
increases underpinning commercial confidence together with the
increasing consumer switch to ordering goods online. There is
anticipated to be a shortage of capacity in the European
transportation sector due to equipment and driver shortages,
however we are well placed to ensure continued services with a wide
supplier base in addition to our customer base in Affinity. These
are solid foundations for Xpediator to continue to grow and achieve
our objective of becoming a European leader of the mid-market
freight management sector.
We are capitalising on the positive market environment and
growing organically whilst executing our strategy of being a market
consolidator through acquiring sub-scale business which are
immediately earnings enhancing with the potential to flourish as
part of the Group. I'm pleased with the performance of each of the
three businesses acquired during the year and their integration
within the Group is proceeding in line with management
expectations.
We are also delighted to welcome Michael Grange into a new role
as the Group's Chief Information Officer. Michael joins after many
years working for Tesco and is part of our investment in supporting
the current and future growth of the business."
**ENDS**
An interview of Xpediator CEO, Stephen Blyth, discussing today's
Trading Update with Vox Markets will be available today from 12:30.
To listen go to https://www.voxmarkets.co.uk/company/XPD or visit
the Company's twitter account https://twitter.com/Xpediator.
Enquiries:
Xpediator plc Tel: +44 (0)330 043 2395 Stephen Blyth, Chief
Executive Officer Email: info@xpediator.com
Richard Myson, Chief Financial Officer
SP Angel Corporate Finance LLP (Nominated Advisor & Joint Broker) Tel: +44 (0)20 3470 0470
Jeff Keating
Caroline Rowe
Cantor Fitzgerald Europe (Joint Broker) Tel: +44 (0)20 7894
7000
David Foreman (Corporate Finance)
Caspar Shand Kydd, Alex Pollen (Sales)
Novella Communications (Financial Public Relations) Tel: +44
(0)20 3151 7008
Tim Robertson
Toby Andrews
About Xpediator:
Xpediator is a well-established international provider of
freight management services. Established in 1988 by CEO Stephen
Blyth today the Company's international network of offices provides
regular and direct services linking Eastern Europe, the Balkans and
the Baltics with Western Europe, 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 their three main areas: freight forwarding,
logistics & warehousing and transport services. With
headquarters in Braintree, Essex and country offices in eight CEE
countries across 22 sites, the Group currently employs over 690
people and was successfully listed on London's AIM market in August
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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