Xpediator (AIM:XPD) told investors on Monday that revenues for 2019 had increased “substantially” by 19% to £213.2m, helping to end the year with strong cash balances.
The freight management services provider outlined within its final results with a positive net cash of £7m as at 31 December 2019.
The group said it had seen good organic growth with ‘like for like’ revenues up by 10.4% and had delivered ahead of revised expectations with an adjusted profit before tax of £5.2m.
Freight forwarding revenues increased by 16.6% to £159.6m whilst logistics revenues increased by 32.2% to £47.5m with the Baltics and Balkans key areas of strength despite strong prior year comparators.
Xpediator said that 2020 activity levels had remained broadly in line with management expectations with high demand from most sectors but with slowdown in some areas due to Covid-19.
Shares in Xpediator were trading 4.50% higher at 29p during Monday morning.
The group said it will take measures to protect the business by minimising capital investment projects and introducing pay reductions and reduced overheads where appropriate.
This strategy will also include proposing a final dividend for 2019 in June 2020 via a scrip issue in order to conserve cash.
“As an asset light business with low fixed overheads we are better placed than some, with demand for our services holding up and, in some areas, seeing an increase,” said Stephen Blyth, Chief Executive Officer of Xpediator.
The group said it continues to seek acquisitions and believes that the current crisis will provide opportunities to reach its target to grow the business over the next few years.
“Ultimately the Board believes Xpediator is well placed to operate through this crisis and emerge in a good position,” added Blyth.
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