Xpediator disposes of EshopWedrop subsidiary

Freight management services provider Xpediator has agreed to sell off its EshopWedrop subsidiary to Inert Logistics.

Xpediator said on completion of the sale, it will benefit from annualised cost savings of £350,000.

ESWD recorded a net loss of approximately £500,000 for the 12 months ended 31 December 2019, with the total consideration payable being £300,000 in cash to be paid in equal annual instalments over the next three years.

With a book value of £700,000 worth of assets, the sale will result in a net loss of £400,000.

Chief executive Robert Ross said: "ESWD is a good concept but is not part of our core proposition, it was consistently loss-making and a distraction from our primary operations where we see much greater potential to grow future revenues and profits."

As of 0950 GMT, Xpediator shares were down 4.55% at 31.50p.