- 30 July 2019
- Transport / Logistics Services
Freight management company Xpediator has given a profit warning, though revenues will be close to £200 million at the financial year end in December.
“As a result of a large customer recently giving notice in respect of its contract with Xpediator’s UK logistics division to use the warehousing facilities at Braintree, the board has decided to take the opportunity to invest in the warehouse so that it is suitable for higher value fulfilment business rather than lower margin storage activities. This re-configuring of the Braintree warehouse will entail a loss of business while the proposed investment is carried out over the next few months.
“In addition, Import Services Limited, part of the UK logistics division, has suffered an increase in labour rates which it has been unable to pass onto customers.”
While investing in other territories, Xpediator’s franchise e-commerce business EshopWeDrop has seen lower volumes this year than last year.
Regional Express has also taken a hit in turnover. “However, this is largely as a result of management focussing attention on securing two valuable and strategic contracts which is expected to generate a material and sustainable profit growth in 2020 and beyond,” the group said.
Chief executive Stephen Blyth said: “We are disappointed to be below our profit targets for this year, however, critically customer demand for our services remains strong reflected in our continued sales growth which, together with the investments we have made across the business, particularly into information technology makes us confident in the Group’s future growth prospects for 2020 and beyond.”