Xpediator PLC

http://xpediator.com/ TICKER: XPD     EXCHANGE: AIM

Xpediator Plc is an integrated freight management business operating in the supply chain logistics and fulfilment sector across the UK and Europe with a particular focus on, and expertise in, CEE countries.

LATEST REPORTS

 
'Walking the talk' - another good deal
Published: Jun 07 2018

Xpediator (XPD) is an integrated freight management business. The Group has three main business areas: freight forwarding services, logistics and warehousing and transport services. Revenues are derived from the UK (23.5% of Group revenue), CEE and Baltic states (76.5%).
XPD has announced that it has acquired Anglia Forwarding Group (‘Anglia’), its third purchase since IPO last year. We anticipate strong scope for integration benefits, some of which are likely to emerge in the very short-term, not least the move of the Group’s export freight consolidation base into Anglia’s main warehouse facility. 
In addition, there is significant scope for cross-selling between the businesses, particularly in the US, utilising the acquired business’ presence in air and sea freight, and in the Midlands. Anglia also has strong European road freight links, notably in Germany, which can be developed further. 
Anglia is a founding member of United Shipping, which is a worldwide network of independently owned and locally operated freight forwarders and customs brokers, focused predominantly on air and sea freight. This relationship potentially opens an extensive customer base globally, which we expect to be linked with Regional Express’ association with Amazon, where the Group has over 1,000 customers in the USA.
We see a positive impact of the acquisition on our forecasts and, after taking into account the recent FY2017 results and trading comments, raise our EPS estimates by 2.8% in FY2018F and by 2.3% in FY2019F. Using our previous valuation methodologies, a share price of 74.5p appears merited.  
 
Investor Forum, March 2018
Published: Apr 03 2018

Stephen Blyth, CEO, outlines the Group's structure, examines recent financial statements and discusses the Group's future growth strategy.
 
Accelerating growth ?
Published: Mar 15 2018

Xpediator (XPD) is an integrated freight management business. The Group has three main business areas: freight forwarding services, logistics and warehousing and transport services. Revenues are derived from the UK (23.5% of Group revenue), CEE and Baltic states (76.5%).
As demonstrated by the recent trading update, XPD continues to grow rapidly by acquisition and also organically (+46% year-on-year in 2017). We anticipate further strong growth during the course of our estimates, too.
Well-established position with the CEE region and the Baltic states and therefore a competitive advantage over late entrants to the region. The CEE region and Baltic states are growing much faster in GDP terms than either the UK or the remainder of the EU. This positioning, should help the Group benefit from continued re-shoring of manufacturing from the Far East. 
Eshopwedrop and Pall-Ex Romania are still in their relative infancies, growth-wise, in our opinion. We anticipate Eshopwedrop, which is now profitable, will grow strongly in both existing markets and by new / forthcoming franchise agreements in Georgia, Albania, Greece, Bulgaria, Ukraine and the USA. The strong growth of Eshopwedrop is expected to result in a cross-selling of warehousing and distribution services.
In addition, Xpediator is looking to open new office locations within the freight forwarding division in the UK. Within the transport & logistics division, management is seeking to open strategically located warehouse facilities (UK Midlands), driven by e-commerce and introduce new services in both existing and new markets. 
As management own 68% of the company, their interests are fully aligned with external shareholders and they are fully focused on value creation. On a forecast 2019 PER of 10.8x and yield of 4.1% the shares appear lowly rated despite the many growth opportunities. This is reinforced by our own valuation calculation using three different methodologies: peer group comparisons, discounted cash flow, and dividend discount model. This suggests a share value of 74p is merited, still well above current levels despite recent gains.
NB you can meet CEO and Founder Stephen Blyth at the ED Investor Forum on March 28th, please register here: 
https://www.eventbrite.co.uk/e/equity-development-investor-forum-march-2018-tickets-43192146874?ref=elink

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