Xpediator (XPD) , the AIM listed freight management services company released interim results on Thursday and declared an interim dividend of 0.28p per share.
The group reported revenues increased 29.8% to £102.4m, driven by increased performance of all of its operating divisions, Freight Forwarding, Transport Solutions, and Logistics and Warehousing.
Xpediator’s Logistics and Warehousing division was a major driver, delivering revenue of £22.6m, up 115.5% from the previous half year.
Alex Borrelli, Chairman, said: "These results demonstrate demand for our services is high both in the UK and on the continent, we are delivering more services to more clients and are on track to generate over £200 million of revenues in the current financial year.”
He added: “Xpediator remains a fast growing, asset light and profitable business; however, in the first half of this year, we faced challenges in our e-commerce businesses and in UK logistics which have and will reduce our profitability in the current year.”
The company’s adjusted operating profit was £2.4m for the first half of the year, down from £2.8m, due to challenges in UK logistics and higher than expected losses from EshopWeDrop.
Eshopwedrop, the company’s B2C e-commerce business, invested into greater GDPR controls, and digital marketing to continue to grow its franchise model in additional countries.
Mr. Borrelli said that the company intends to continue to invest in the e-commerce division in the second half of 2019.
He said that despite the challenges to its UK logistics division, Xpediator’s core businesses performed strongly delivering good revenue growth across all divisions.
Xpediator told investors that it invested significantly in preparing for Brexit, asserting that it believes a hard Brexit represents an opportunity to make “significant profits” from customs processes.
Follow News & Updates from Xpediator here: