Xpediator profits hit by increased labour rates and warehouse reconfiguration
Xpediator
43.75p
16:55 06/07/23
Freight management group Xpediator has seen profitability take a hit from an increase in labour rates at part of its UK logistics division, it said on Tuesday, as well as lost profits stemming from its move to reconfigure its Essex warehouse.
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It assured investors in its update that it was on course to meet revenue expectations of more than £200m in its current year, but warned that profitability would likely be sub-par as a result of its efforts to make the Braintree, Essex warehouse more suitable for higher-value fulfilment.
The AIM-listed group also said its e-commerce business had generated lower volumes, while turnover in its Regional Express unit was currently tracking below that achieved in 2018.
However, Xpediator revealed that turnaround efforts at its Benfleet operation were continuing, its Anglia division was performing strongly and its Romanian Pallex business and the Affinity division were also trading well.
Chief executive Stephen Blyth said: "We are disappointed to be below our profit targets for this year, however, critically customer demand for our services remains strong reflected in our continued sales growth which, together with the investments we have made across the business, particularly into information technology makes us confident in the group's future growth prospects for 2020 and beyond."
As of 1040 BST, Xpediator shares had tumbled 36.18% to 32.55p.