31st Dec 2020 08:39
(Alliance News) Freight management services provider Xpediator PLC on Thursday said it has agreed to sell its subsidiary EshopWedrop Holdings to Inert Logisitics LLP for GBP300,000 in cash.
Inert Logistics is mostly controlled by Mircea Bandean, who is the managing director of EshopWeDrop, a business-to-consumer logistics service run by Xpediator's logistics operations for commercial customers.
The cash consideration is to paid in equal instalments over the next three years, and will go towards growing the group's core business.
The book value of EshopWedrop assets - including capitalised IT expenditure, goodwill and working capital - is GBP700,000, which will result in a net loss on the sale of the business of GBP400,000.
"EshopWedrop is a good concept but is not part of our core proposition; it was consistently loss making and a distraction from our primary operations where we see much greater potential to grow future revenues and profits. On completion of the sale, the group will benefit from annualised cost savings of GBP350,000," said Chief Executive Officer Robert Ross.
Shares in Xpediator were down 3.1% at 31.98 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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