Xpediator
Ticker: XPD Exchange: AIM xpediator.com

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.

Rapid recovery in revenues and margins

Xpediator has delivered a healthy trading update, breaking several revenue records during H2 2020.  Furthermore, the outlook for FY21 remains promising, reflecting recovery to more normal levels in Transport Services, a full-year impact of the Nidd acquisition, the turnaround of underperforming businesses, and new ventures.

Today’s report highlights the progress management has made since the nadir in operating margins in H2 2019. Group revenues of c.£221.0m for FY20 suggests record revenues are set to be delivered within Freight Forwarding and Logistics & Warehousing: an overall uplift of 3.6% y-o-y.

The £6m PBT forecast for FY20 highlights an improving margin, albeit this represents a shortfall from FY18. In our opinion management actions, plus recovering markets, can take the Group to peak margins over the next 18-24 months: delivering a marked increase in profitability.

Robert Ross, CEO, states that ‘For Xpediator, 2020 has demonstrated the strength of being a diversified business….and we are moving forward into 2021 with confidence.’ We concur and our fair value for the shares at 50p / share is nearly twice the current price, supported by an attractive yield and net assets/cash.

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