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Xpediator profits from market growth and trio of acquisitions
Freight management services group Xpediator reported a 65% jump in annual profit after three acquisitions boosted revenue.
The increase in the AIM traded company's pre-tax profit saw it boosted to £2.4m while, compared to the previous year, revenues saw a 60% increase to £116.3m for the 12 months leading up to 31 December.
Over the course of the year, the company acquired fashion processor and distributor EMT in a deal worth up to £7.5m, freight forwarder Benfleet Forwarding in a transaction for up to £7.2m and UK-based freight forwarder Regional Express for an expected total consideration of £1.7m.
The acquisitions have given the company expanded opportunities for air, sea and port services, and new high profile clients such as Amazon.
Thanks to the positive results, the company released a 0.64 pence per share final dividend compared to nothing in the previous year.
Stephen Blyth, chief executive of Xpediator, said: "2017 was a very successful year for the business as shown by our 60% increase in revenues which was primarily driven by organic growth across all three divisions. The combination of operating between mature western economies and fast growing CEE markets together with the ever increasing demand for ecommerce and fulfilment is creating a very positive market for our transportation services."
Xpediator projects a strong 2018, saying that profit margins have already improved, and that it expects the new acquisitions to significantly increase its potential customer base.
As of 1031 BST, Xpediator's shares were up 3.31% at 62.50p.