Xpediator (AIM:XPD) , the freight management services provider, said it is now seeing transportation volumes moving back towards pre-COVID-19 levels in the UK and Europe.
In a trading update for the six-month period ended 30 June 2020 the group said it had maintained transporting essential goods during the initial COVID-19 lock-down periods.
The company said trading in the first three months was slightly up ‘on a like for like basis’, and whilst trading was ultimately impacted during the lockdown period, Xpediator said it has ‘performed robustly’ during the pandemic and has seen a steady recovery since April.
The group has seen some ‘good performance’ across several Central and Eastern European countries that it operates within that have not been as badly affected by the crisis.
Activity across the group’s logistics division has remained broadly stable and transportation services, it said, and after a natural period of reduced sales are now gathering momentum.
Shares in Xpediator were trading 6.67% higher at 24p on Friday morning.
As a result of significant cost reductions made at the outset of the pandemic as well as the company’s existing asset light and relatively low fixed overheads model, the group has maintained a strong balance sheet with net cash of around £4.2m (£3.8m at 30 June 2019).
It said a large proportion of the cost reductions implemented are permanent and should ‘ensure the business remains well positioned to deliver on its longer-term growth ambitions.’
Xpediator stated the business traded only marginally behind management's original expectations for the period, while an ongoing focus on cash collection saw an improvement in average payment terms from customers during H1, despite the challenges of COVID-19.
While the group's trading volumes continues to move towards more normal levels, it said it is unable to provide market guidance at this time due to the current market uncertainty.
However, Xpediator has told investors that the business ‘is financially stable and well placed to grow and capitalise on opportunities that may arise alongside the wider global recovery.’
The group expects to publish results for the six-month period to 30 June 2020 in September.
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