Xpediator Share Discussion Threads

[sev22] 13/9/2021 19:19

Just to let everyone know that a recording of the presentation: XPEDIATOR PLC - Interim Results for the six months ended 30 June 2021, along with responses to questions that were answered by the company is now available for review in the meeting archive on the Investor Meet Company platform.

Login to view the recording and Q&A (free access via registration).

Should you have any questions, contact [e-mail].

[svend2] 13/9/2021 18:48

SEV22 - Thanks for sharing get ready for the 2nd attempt at the ATH close to 85p just a matter of time IMO DYOR

[sev22] 13/9/2021 18:11

Tipped again by Simon Thompson in his Small Companies column (Investors Chronicle) tonight:

On course for bumper profit growth.

Braintree-based international freight management services group is delivering strong organic growth from freight forwarding and its palet businesses, and looks set to exceed full-year profit estimates.

First half adjusted pre-tax profit up 74 per cent to £3.6m on 27 per cent higher revenue of £126.6m.
Freight forwarding key driver of growth.
Annual pre-tax profits expected to exceed £8.5m, up from £7.2m in 2020.

In late June, Braintree-based international freight management services group Xpediator (XPD: 67p) raised full-year pre-tax profit guidance by more than 10 per cent to £8.5m. The earnings risk is still skewed to the upside as the directors only need to repeat last year’s second half performance to hit forecasts.

In the first half, Xpediator’s freight forwarding operating profit (pre-central overheads) surged 54 per cent to £4.1m on 28 per cent higher revenue of £101m buoyed by more mature businesses in Lithuania and Bulgaria, higher sea rates (which are passed on in full to customers), and extra UK customer clearance work for clients post Brexit.

The group also benefited from £0.4m higher operating profit contribution from its Affinity brand which provides bundled fuel and toll cards and transport services (ferry bookings, insurances and VAT refunds) to 2,000 Eastern European hauliers and 14,500 lorries. There was good news from Xpediator’s Pall-Ex (Romania) franchise, a fast-growing palletised freight distribution network offering 24-hour delivery, which is moving 78,000 pallets of freight each month, up from 67,000 in the first half of 2020. Warehousing activity in Romania is robust, too, operating profits from that business rose by 60 per cent and could hit £0.6m for the full-year.

Admittedly, start-up costs for Xpediator’s new 200,000 sq ft facility at Southampton proved a drag and meant that operating profit from logistics and warehousing activities declined by a third overall to £0.4m, but the pipeline is strong and the seasonality of the business supports a second half rebound. Importantly, the first half working capital build – net cash of £6.7m reversed to net debt of £1.6m – is unwinding. The negative movement reflected higher advance supplier payments to secure drivers and lorries, increased freight rates, delays in client payments linked to acceptance of Brexit related charges, and a change in operational system within UK freight forwarding finance. Cenkos Securities pencils in year-end net cash of £3m.

I initiated coverage at 45p (Alpha Report: Profit from a Brexit winner’, 19 February 2021), and the share price almost achieved my 85p target after the directors raised guidance 11 days after my last update (‘Primed for a major earnings beat’, 14 June 2021). The pull-back since July is overdone. Priced on 10 times operating profit estimates to enterprise valuation, representing a 37 per cent discount to sector peers, the shares rate a buy.

[carcosa] 13/9/2021 17:00

This will unwind. Cenkos forecasting 3m net cash by year's end.

[jimmywilson612] 13/9/2021 16:51

Net debt (excluding right-of-use assets debt) at 30 June 2021 was GBP1.6m (31 December 2020: net cash GBP6.8m). The negative movement is primarily a reflection of considerable advance supplier payments required in line with market supplier availability, increased freight rates, delays in client payments linked to acceptance of Brexit related charges and some delays in collecting UK receivables following a change in operational system, personnel and structures within the UK freight forwarding finance and shared service teams. This item is receiving significant focus, has already improved and is expected to be fully unwound by the year end.

Thats a bit unnerving.

[svend2] 13/9/2021 16:30

undervaluedassets -

Thanks for the insights, the same idea as the earlier Taoist saying - "The journey is the reward."

I guess the 'mob' just ride and scalp on the results day and then move on to the next target.

meanwhile, see the price closed down just under 5% so the recovery has started already..

[capitalist] 13/9/2021 14:26

Same thing happened at ACSO a while ago. Revaluation came later. I bought some more on the dip.

[undervaluedassets] 13/9/2021 13:53

No Catalyst.

It's been my experience that good results often get sold. The "it is better to travel than to arrive" mob often sell good results.

Sometimes you have to wait a few days for for the proper reaction to materialize

[svend2] 13/9/2021 12:36

Agre great results & company presentations this morning however the share price is down close to 10% what's the catalyst?

[undervaluedassets] 13/9/2021 11:15

very decent results

[sev22] 13/9/2021 09:17

Xpediator says full-year results will top expectations after strong interims.

[sev22] 13/9/2021 07:45

Xpediator delivers strong first-half performance as underlying businesses continue to grow.

[mfhmfh] 10/9/2021 10:18

rising nicely before Monday's interim results statement.

[svend2] 09/9/2021 21:41

Double Thanks SEV22 > I too missed the boat to load up and add on the pullback/re-entry opportunity in the 60's yesterday guess we are now back targetting/hitting the 80's NATH again before Monday interim results unless uncle sam has a wobble b4hand ;-).

[gleach23] 08/9/2021 19:50

Thanks SEV22 - I'd reread his previous write up from 14th June before making my trades today but had missed this one previously.

Nice intraday reversal.

[sev22] 08/9/2021 09:56

Below is Simon Thompson's last update on the 29th June 2021.

Xpediator’s drives earnings upgrades.

Profit guidance upgraded by 10 per cent.
Analysts’ dividend and earnings forecasts raised.
Braintree-based international freight management services group Xpediator (XPD:78p) has announced the earnings beat I anticipated a few weeks ago (‘Primed for a major earnings beat’, 14 June 2021).

Demand for the group's services across all three divisions – freight forwarding, logistics and warehousing, and transport services – continues to be strong with those parts of Xpediator’s Transport and Logistics & Warehousing businesses that were impacted by the Covid-19 pandemic now all trading positively.

The directors are now guiding shareholders to expect annual pre-tax profit “in excess of £8.5m”, up from £7.7m previously forecast in the market and £7.2m reported in 2020. House broker Cenkos Securities has taken note and upgraded its operating profit estimate from £8.9m to £9.7m, implying 20 per cent annual profit growth, on 12 per cent higher revenue of £247m (5 per cent upgrade). Expect closing net cash of £8.1m, up from £6.7m in 2020.

On this basis, Xpediator has an enterprise valuation of £101m, or 10.4 times operating profit. The shares also offer a prospective dividend yield of 2.2 per cent based on the annual pay-out being raised by 13 per cent from 1.5p to 1.7p a share, in line with the double-digit dividend growth in 2020.

I wouldn’t be surprised at all to see earnings guidance being upgraded again given that Xpediator’s key markets – Baltic states and nine central and Eastern European (CEE) countries account for 63 per cent of group revenue – offer superior growth prospects compared with the rest of Europe, thus underpinning demand for its services. Also, the UK economy is recovering strongly from the Covid-19 pandemic, so much so that investment bank Goldman Sachs predicts 8.1 per cent economic growth in 2021. That’s clearly good news for logistic companies.

The holding has produced a total return of 70 per cent since I initiated coverage, at 45p, four months ago (Alpha Report: Profit from a Brexit winner’, 19 February 2021) and with the earnings risk skewed to the upside, I am upgrading my target price from 85p to 90p. Strong Buy.

[gleach23] 08/9/2021 09:32

Given how this tends to move, back in for a trade at this 63-65 level given the two June trading updates and Interims due next Monday. Still hold an investment in addition. GLA

[svend2] 08/8/2021 19:39

zico01 - Yes indeed very good start to the 2nd half of the year meanwhile they just keep on trucking ;-)

[mfhmfh] 06/8/2021 07:36

I wouldn't be surprised if XPD acquire Synergy Retail Support in the future.

IMHO.

[zico01] 06/8/2021 06:53

Expect new highs for the share price :

Agreement for UK Strategic Partnership with e-fulfilment leader Synergy Retail Support

Xpediator (AIM: XPD), a leading provider of freight management services across the UK and Central and Eastern Europe is pleased to announce it has formed a strategic partnership with the Northampton based e-Commerce fulfilment expert, Synergy Retail Support Limited ("Synergy").

Established in 2009, Synergy provides bespoke B2C and B2B fulfilment and e-commerce returns services from its 148,000 sq ft warehouse in Northampton. Working with a broad client base, from eCommerce brands to high street retailers, Synergy has a strong presence within the Fashion and Health & Beauty sectors, and a growing presence in Food & Beverage, Gift & Toys, Household FMCG brands, and general department stores.

Demand for Synergy's services is high and, as its Northampton warehouse is close to full capacity, under the new partnership, Synergy will utilise the currently vacant space in Xpediator's warehouse in Braintree to expand. Already, some of Synergy's clients have taken space in Braintree with discussions also underway for further clients to utilise space.

E-commerce fulfilment is a specialist and technology led area of the logistics market, one in which Xpediator is looking to establish a significant presence, and which is experiencing strong market fundamentals. This partnership represents an opportunity for both businesses to benefit, with Synergy making use of Xpediator's logistics capacity to expand its business and Xpediator gaining exposure to an important growth sector whilst maximising revenue from its warehouse capacity.

Robert Ross, Chief Executive of Xpediator, said:

"Synergy is a great business with strong management and an excellent technology-led product offering. Its client list speaks for itself and we are very pleased to have agreed this partnership which has already started to generate revenues for both companies. We are looking forward to maximising the potential for our Braintree warehouse and then looking beyond that, to see where else we might collaborate for mutual advantage."

Gary Rees, Chief Executive of Synergy, said:

"We have grown rapidly by consistently focusing on providing excellent customer service. Each one of our clients receives a bespoke service and we believe this has been the key to our success to date. Now we need more space to accommodate demand from our clients and by partnering with Xpediator we are joining with a much larger business which can support our immediate expansion plans, and longer term there may be opportunities to expand our services into new markets outside the UK."

[dual] 22/7/2021 12:07

.. in injuries 9 just I n9 unnecessary nn 9n I jjin

[svend2] 13/7/2021 15:39

Thaiger > from a technical point of view the low 70's maybe become a support area as it was a previous resistance area.

[thaiger] 09/7/2021 10:17

Thought with the raised guidance share price should move North not South!!

[techno20] 01/7/2021 12:19

ST moved Target to 90p from 85.