- Freight management firm Xpediatior delivered a shock warning that pre-tax profits for the year to 31 December will be 'materially below expectations' due to the loss of a large customer, investment in one of its warehouses and higher labour costs.

In a trading statement, the company said that as a result of a large customer recently giving notice in respect of its contract with Xpediator's UK logistics division to utilise the warehousing facilities at Braintree, 'the Board has decided to take the opportunity to invest in the warehouse so that it is suitable for higher value fulfillment business rather than lower margin storage activities.'

It added: 'This re-configuring of the Braintree warehouse will entail a loss of business while the proposed investment is carried out over the next few months.

'In addition, Import Services Limited, part of the UK logistics division, has suffered an increase in labour rates which it has been unable to pass onto customers.'

The firm maintains that customer demand remains strong and that it is on course to meet market expectations for full year revenues of over £200m.

At 8:32am: [LON:XPD] Xpediator Plc share price was -19p at 32p

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