Trading at Xpediator has recovered to “historic levels” despite Coronavirus pandemic, the 3PL has told investors.
The 3PL said growth had been driven by a rise in demand for freight forwarding services, where it has seen additional income from new markets. As a result, it said that 2020 revenues for this division were expected to exceed 2019 by approximately £10 million (2019: £159.6 million).
Xpediator also said it expected to report £6 million in pre-tax profit for the year ending 31st December , up 18% year-on-year from £5.15 million.
Xpediator Chief Executive Robert Ross said: “Demand has increased for our freight forwarding and warehouse and logistics services, and we have also delivered on cost saving initiatives.”
In its warehousing and logistics division, Xpediator said that income from warehousing in the UK was reduced due to what it described as ‘lower activity’ amongst its retail clients. However, it said, the second half of the year had been much stronger, especially in its Import Services division based in Southampton docks. As a result, it said that revenues for the division would be flat year-on-year at approximately £48 million.
In October Xpediator acquired UK-based international groupage freight forwarder and operator Nidd Transport for £4.6 million. It said that the integration was now underway and the business is performing slightly ahead of management expectations.
It also told investors that it had been preparing itself and its clients for a potential hard Brexit, establishing a new customs brokerage team. It told investors that if there is a change to border controls it will have an increased workload which would “translate into higher revenues”.
To discover if Xpediator makes the Logistics Manager Top 50 Service Providers, register for our series of webinars counting down the fastest-growing 3PLs in the UK. It starts on 1st December with a special with Westcoast.