Xpediator PLC COVID-19 Update (1235I)
31 Marzo 2020 - 12:00AM
UK Regulatory
TIDMXPD
RNS Number : 1235I
Xpediator PLC
31 March 2020
31 March 2020
XPEDIATOR PLC
("Xpediator" or the "Group")
COVID-19 Update
Xpediator (AIM: XPD), a leading provider of freight management
services across the UK and Central and Eastern Europe provides the
following update on how the Company is responding to the COVID-19
pandemic.
Overview
The wellbeing and safety of our people, customers and suppliers
is Xpediator's first priority. From the beginning of the pandemic,
we have followed the operational guidelines provided by the
respective governments in each market we operate, changing working
practices to incorporate social distancing across our offices,
depots and warehouses. Where possible individuals are working
remotely from their homes. With the significant effort of all our
people, we are continuing to operate effectively whilst also taking
the appropriate actions to limit the spread of this virus.
So far this year activity levels have remained broadly in line
with management expectations, with high demand from some sectors
and other areas slowing. In response we have sought to allocate
resource to match demand across the business. While it is hard to
make any predictions under these extraordinary circumstances, based
on very recent trends, the Board believes that demand for our
freight management and warehouse services, both in the UK and
Europe will remain sufficiently robust overall but will be more
volatile in any given month, and that we have the systems and
protocols in place to meet this demand.
Trading Update
As previously guided, we intend to announce our audited final
results for the year ended 31 December 2019 in April 2020 and
expect to report turnover increasing 19% to GBP212 million (2018:
GBP179.2 million) and profit before tax slightly above GBP5.0
million.
Trading in the first three months of 2020 has been in line with
our expectations. Although trading patterns have been different,
for example revenues from Chinese customers understandably reduced
in the first two months, however, this has been off-set by higher
than expected demand from other sectors such as our European road
freight forwarding and Pall-Ex in Romania, and over the last couple
of weeks Chinese volumes have started to improve. Warehouse
utilisation has been good and is expected to continue across all
areas of operations. The freight forwarding division is of course
asset light and has the ability to flex supply requirements against
demand in a timely fashion. We have experienced supply issues on
equipment and therefore buying and selling prices have increased to
reflect this.
However, given current material uncertainties, it is not
practical to give longer term guidance at this time until there is
greater clarity around the duration and full effects of COVID-19 on
our customers, suppliers and our markets. We are benefitting from
our diverse operations across the UK and Europe which has already
helped us offset challenges in some areas with higher activity in
other markets. However, there are challenges to navigate such as
obtaining international drivers, general increases in costs and
more complex border checks.
Financial Strength
We are an asset light business and do not own a large fleet of
trucks, we have low fixed overheads and typically act as a broker
to our clients sourcing capacity from the market as it is required.
As at 31 December 2019, the Company had net cash of GBP6.9 million
(unaudited) and has sufficient headroom within the business to
manage anticipated working capital requirements.
In addition, we are conducting a comprehensive review of our
business and have reduced costs in specific areas where activity
levels have fallen or are likely to reduce as a result of the
disruption caused by COVID-19. Cost savings are expected to come
from furloughing staff, agreeing temporary pay reductions and
reducing other overheads.
The Board are confident Xpediator is well placed to manage its
financial and commercial commitments during this extraordinary time
and can emerge well-positioned for growth when market conditions
return to normality. The Board continue to intend to propose a
final dividend for the year ended 31 December 2019, but the amount
is yet to be determined given the fundamental uncertainties that
currently exist in the market.
The Board is closely monitoring the situation across the
business and will make further announcements as and when
appropriate.
The information communicated within this announcement is deemed
to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014. Upon the publication of this
announcement, this inside information is now considered to be in
the public domain.
Xpediator plc Tel: +44 (0)330 043
2395
Stephen Blyth, Chief Executive Officer Email: info@xpediator.com
Cenkos Securities plc (Nominated Adviser & Tel: +44 (0)20 7397
Joint Broker) 8900
Max Hartley, Max Gould (Corporate Finance)
Nick Searle (Sales)
Cantor Fitzgerald Europe (Joint Broker) Tel: +44 (0)20 7894
7000
David Foreman, Michael Boot (Corporate Finance)
Caspar Shand Kydd, Arthur Gordon (Sales)
Novella Communications (Financial Public Relations) Tel: +44 (0)20 3151
7008
Tim Robertson
Fergus Young
About Xpediator:
Xpediator is a well-established international provider of
freight management services. Established in 1988 by Stephen Blyth,
the Group's international network of offices provides road, sea and
air freight services, together with logistics and warehousing in
the UK and Romania. The business offers integrated freight
management within the supply chain logistics and fulfilment sector,
through its three main areas: freight forwarding, logistics &
warehousing and transport services. With headquarters in Braintree,
Essex and country offices in nine CEE countries across 38 sites,
the Group currently employs over 1,000 people and was successfully
listed on London's AIM market in August 2017.
Import Services is the leading port centric logistics company in
the UK, operating from Southampton, linking intelligent networks of
supply chain services, with global real time information, to meet
the new world of retailing. For more information visit
https://importservices.co.uk
For more information, please visit: www.xpediator.com .
Alternatively, do follow us on Twitter at @Xpediator or find us
on LinkedIn at Xpediator Plc .
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END
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