Xpediator Plc (LON:XPD), a leading provider of freight management services across the UK and Central and Eastern Europe, has announced its unaudited condensed interim results for the six months ended 30 June 2021.
H1 2021 Financial Highlights
· Group revenue of £126.6m (2020: £99.6m).
· Adjusted profit before tax1 of £3.6m (2020: £2.1m) reflecting continued growth within key CEE markets, incremental revenue generated from customs clearance, full recovery from a COVID-19 affected market and execution of a clear and simplified business strategy.
· Adjusted earnings per share of 1.58 pence (2020: 1.03 pence).
· Basic earnings per share of 0.66 pence (H1 2020: loss per share of 0.25 pence).
· Interim dividend increased by 11% to 0.50 pence per share (H1 2020: 0.45 pence).
· Freight Forwarding revenue increased 28.5% to £100.8m (2020: £78.4m) generating operating profit of £4.1m (H1 2020: £2.6m), driven primarily by growth in CEE, enhanced sea freight rates and successful implementation of a UK customs clearance department.
· Logistics and Warehousing revenue increased by 22.0% to £22.9m (H1 2020: £18.7m) giving an operating profit of £0.4m (2020: £0.6m), resulting from continued strong performance from the Romania Pallex business, offset by start-up costs linked to the UK new build 200,000 sqft facility in Southampton and the UK Braintree facility turnaround.
· Transport Support Services revenue increased by £0.5m to £3.0m (2020: £2.5.m) and operating profit to £1.3m (2020: £0.9m).
Post Period Highlights
· UK strategic partnership with e-fulfilment leader Synergy Retail Support.
· Opening of 200,000 sqft new build warehouse extension in Southampton for Delamode International Logistics.
· Review and development of the Group digitalisation strategy and recruitment of a new Group Digitalisation Director.
· Further recruitment of key senior personnel to enhance and strengthen leadership.
· Well placed to achieve an improved performance in the second half of 2021 with adjusted profit before tax for the full year expected to be in excess of £8.5m.
· Healthy pipeline of potential acquisitions.
1 Profit before tax has been adjusted for exceptional items of restructuring costs and deferred consideration release of £398,000 (H1 2020 – £700,000) non-cash interest on deferred consideration of £nil (H1 2020 – £161,000), amortisation of acquisition related intangibles of £742,000 (H1 2020: £726,000), additional interest charge of £167,000 (H1 2020: £171,000) following the application of IFRS 16.
Alex Borrelli, Chairman, commented:
“These financial results show an all-round enhanced performance aligned to a clearer business strategy. All divisions performed well but particularly impressive was the performance of our Freight Forwarding division with Lithuania and Bulgaria reporting strong results.
As indicated by way of the trading update released in June 2021, the Group is expecting a further strong operational and financial performance in H2 2021. This is extremely pleasing and takes into account business strategy alignment, key personnel employed and cost reduction decisions taken in H2 2020.
Finally, I welcome Mark Whiteling as my successor as Chairman effective 22 September 2021.