Xpediator profits tank on e-commerce and logistics challenges
Xpediator on Thursday reported a plunge in interim profits as highers costs stemming from challenges in its e-commerce businesses and in UK logistics overshadowed an increase in revenue.
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The freight management services provider reported a profit before tax of £0.2m for the six months ended 30 June, down 89% compared to the year before, as cost of sales increased by 25% to £77.6m and administrative expenses rose by 69% to £23.7m.
The company cut its interim dividend from 0.42p per share to 0.28p.
The increase in costs was attributed to challenges in UK logistics, additional investment in personnel and IT and higher-than-expected losses from B2C e-commerce business EshopWeDrop.
Revenue climbed 30% to £102.4m, with revenue across all of the AIM-traded company's main countries of operations higher and UK turnover up 49% to £42.8m.
Chairman Alex Borrelli said: "Despite the challenges incurred, our core businesses have performed strongly, generating good revenue growth and demonstrating the underlying strength of the business."
The said it has invested significantly in preparing for Brexit and believes a hard Brexit represents an opportunity to make significant profits from customs processes.
Xpediator shares were down 6.43% at 24.00p at 1220 BST.