Xpediator (AIM: XPD ) has shown “a resilient performance” following good demand for the group’s services both in the UK and on the continent despite the impact of the pandemic.  

The freight management services provider raised its dividend by 60% to 0.45p (H1 2019: 0.28 pence) after reporting underlying profit at £2.1m and a strong cash generation. 

While COVID-19’s impact reduced profitability in the period, the group said it is trading close to normal levels and has started ‘the traditionally stronger second half of the year well.’ 

While net cash for the period was down to £4.3m (31 December 2019: £7.0m) due to £3.7m in deferred acquisition payments, the group reported a strong net cash generation of £5.4m (2019: £5.5m). 

Revenue came to £99.6m for the six months ended 30 June 2020 (2019: £102.4m) while pre-tax profit was up to £0.3m from £0.2m in H1 2019. The good performance in the Freight Forwarding offset revenue declines experienced in the Warehouse and Affinity operations.  

Alex Borrelli, Xpediator’s Chairman, said its Freight Forwarding division was “particularly impressive” in Lithuania, Bulgaria, Estonia, Serbia in the first half while its UK business showed strong growth and “identified some good opportunities” through COVID-19. 

Shares in Xpediator have traded strongly over the past month from 21.5p to opening up 6.67% higher in early trading this morning at 28p following the announcement. 

Xpediator said significant progress has been made in the structure of the operation and the pipeline of new customers remains strong. It said while there may be some trading losses during H2 2020, the businesses are expected to return to profitability with new contracts. 

The group said its Freight Forwarding division has been navigating the uncertain position regarding Brexit during 2020 with investments in both external and internal resources. 

A Brexit Committee made up of the senior executives within the division was established in 2018 and has been meeting regularly to manage the Brexit Project. 

‘Depending on the outcome of negotiations between now and January 2021 custom clearance activity may offer a significant opportunity for the division,’ the company noted. 

Xpediator remains confident in future demand for its services despite uncertainties with Brexit and COVID-19. It expects profit for the year to be in line with or above last year’s. 

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