26th Sep 2019 12:03
(Alliance News) - Xpediator PLC on Thursday said it expects to deliver double-digit year-on-year revenue growth in 2019 on improved customer demand.
The freight management services provider reported pretax profit of GBP227,000 for the six months to the end of June, down 90% from GBP2.2 million reported a year earlier, as administrative expenses almost doubled to GBP23.7 million from GBP14.0 million.
The company was also hurt by the change it its accounting standard, which resulted in IFRS 16 interest charge of GBP467,000.
More positively, Xpediator's revenue grew by 30% to GBP102.4 million from GBP78.9 million year-on-year as gross billings were up 19% in the first half to GBP171.0 million from GBP143.8 million.
"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 GBP200 million of revenue in the current financial year," said Chair Alex Borrelli.
"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," added Borrelli.
The company said it has implemented solutions to the problems incurred in its UK logistics division, while it intends to continue investments in the e-commerce division in the second half of 2019.
Xpediator shares were trading 6.4% lower on Thursday in London at 24.00 pence each.
By Evelina Grecenko; [email protected]
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