Xpediator sees freight volumes returning post-lockdown
Xpediator
43.75p
16:55 06/07/23
Freight management company Xpediator updated the market on its first half of trading on Friday, saying it had performed “robustly” during the Covid-19 pandemic, although it was impacted by the coronavirus lockdown.
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The AIM-traded firm said it maintained the transport of essential goods across the UK and Europe during the initial lockdown periods, with it now seeing volumes moving back towards pre-Covid-19 levels.
It said trading in the first three months of 2020 was up slightly on a like-for-like basis, and added that it saw a “steady recovery” in volumes since April.
The group's trading was assisted by the diversity of its European footprint, with the board reporting a “good” performance in some of its central and eastern European countries that had not been as badly affected by the crisis.
Activity in the logistics division had remained broadly stable, and transportation services, after a natural period of reduced sales, were gathering momentum.
As a result, Xpedicator said it traded “only marginally” behind management's original expectations for the six-month period to 30 June.
“Significant cost reductions were made at the outset of the pandemic, and in combination with the group's existing asset light and relatively low fixed overheads model, the impact of Covid-19 on the group's cash position and margins has been mitigated,” the board said in its statement.
“Some of the cost reductions implemented have been temporary, such as voluntary pay reductions and furloughed staff, however a large proportion are permanent and should ensure the business remains well positioned to deliver on its longer-term growth ambitions.”
The company said it had a “strong” balance sheet, with net cash of around £4.2m as at 30 June, up from £3.8m year-on-year, which was after the payment of deferred consideration of £3.6m following the conclusion of the earn-out periods from historical acquisitions.
It said its ongoing focus on cash collection had seen an improvement in average payment terms from customers during the first half, despite the challenges of Covid-19.
“The group continues to see trading volumes moving towards more normal levels but it is still too early to predict with any certainty how quickly our markets will recover, and we therefore remain unable to provide market guidance at this time,” the directors said.
“However, the business is financially stable and well placed to grow and capitalise on opportunities that may arise alongside the wider global recovery.”
It said the firm took “swift actions” at the start of the pandemic, and was subsequently able to reduce the temporary pay reduction scheme from three months to two months.
“The board remains focused on delivering long term value to our customers and shareholders.”
Xpediator said it was expecting to report its results for the six-month period to 30 June in September.
At 0815 BST, shares in Xpediator were up 2.67% at 23.1p.