Xpediator Plc is an integrated freight management business operating in the supply chain logistics and fulfilment sector across the UK and Europe with a particular focus on, and expertise in, CEE countries.
Back on track
The latest update from XPD reads well. Trading volumes have almost returned to pre-COVID-19 levels, aided by the breadth of coverage across Europe. Meanwhile, the cost base is permanently lower, following swift action at the start of the crisis.
Cash levels are higher than at the same stage a year ago standing at £4.2m end of June, only behind year-end levels owing to the payment of deferred consideration. Such is the confidence within the business that management ended the voluntary pay reduction scheme a month earlier than initially anticipated.
Activity in the UK was harder hit because of the COVID-19 pandemic, yet parts of Central and Eastern Europe only saw modest disruption. Ahead of lockdown there were issues across several UK businesses which management were already dealing with. Strong performances, relative to the remainder of the Group, were evidenced in Lithuania, Bulgaria and to a lesser extent, Romania. Freight Forwarding and Pall-Ex Romania have fared particularly well.
While it remains too early to reinstate estimates, we remain encouraged by the improving trading levels, the permanent lowering of the cost base and action to put out fires. The shares are strongly supported by cash and the NAV.Download Now Missing Out Get our research first
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