StockMarketWire.com - Freight management group Xpediator said it expected to post an 18% rise in annual profit following a recent bounce back in trading.

Adjusted pre-tax profit for the year through December was seen rising to £6.0 million, up from £5.2 million year-on-year.

Xpediator said trading since the half year had continued to recover to historic levels.

The company said its asset-light freight forwarding division was able maintain cost flexibility throughout the pandemic, including when volumes dropped sharply at the beginning of the Covid-19 outbreak.

'Since then, demand for freight forwarding services has strengthened with the group seeing additional income from new markets,' it said.

Revenues for the division were expected to exceed the £159.6 million posted in 2019 by around £10.0 million.

The transport solutions division, which provided fuel and toll cards to European hauliers, also had seen a recovery in monthly revenues.

For the full year, revenue for the division was expected to fall to around £5.0 million, down from £6.2 million in 2019, having recovered from 40% down in April to only 6.5% down in October.

Revenue for the warehousing division was expected to flat at around £48 million.

'Since 2016, the group has been preparing itself and its clients for a potential hard Brexit,' Xpediator said.

'A new customs brokerage team has been established, set up to handle the likely increase in declarations whatever the Brexit deal outcome.'

'If there is a change in border controls, then the group believes it will have an increased workload which should translate into higher revenues.'

'The outlook for 2021 remains strong, even with likely ongoing disruption in specific areas relating to the pandemic.'

'The group's confidence is based on maintaining current trading patterns, the ongoing benefit of cost reductions made, additional income from Nidd and a healthy balance sheet.'

'The group anticipates continuing with its progressive dividend policy to reflect the increase in expected profitability.'


At 9:00am: [LON:XPD] Xpediator Plc share price was 0p at 24.5p



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