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Xpediator PLC shares fell on Monday after the company cut its annual dividend, stating that Russia's invasion of the Ukraine hurt its operations in Lithuania.
Shares were down 12% at 44.00 pence each on Thursday afternoon in London.
The Essex-based freight management company said posted a pretax profit of £4.3 million in 2021, up 10% from £3.9 million in 2020.
This can be attributed to revenue growth of 34% to £296.6 million from £221.2 million the year before.
Xpediator credited its results to an ‘excellent’ performance in its Freight Forwarding division, supported by ‘profitable performances’ by its Transport and Warehouse & Logistics units.
Xpediator proposed a final dividend of 0.6 pence, bringing its total dividend to 1.1p. This reflects a 35% decline from the 1.5p per share paid the year before. The company explained that the decision to cut its annual payout was due to the war in Ukraine. The company said that this has particularly hit its operations in Lithuania.
‘The board believe it is the right decision to be cautious at this time given the tragic events unfolding in Ukraine and has proposed a lower final dividend than the prior year. However, if as expected the working capital impact on the group remains small then the board will look to pay a special dividend during 2022,’ Xpediator stated.
The company said that trading in the first two months of 2022 was ahead of expectations, despite Russia's invasion of Ukraine and inflationary pressures.
Xpediator stated it is well placed to deliver a solid result this year in spite of significant macro challenges.
‘Looking ahead, the macro environment poses clear challenges for all businesses from rising energy prices to the significant increase in geopolitical uncertainty caused by the tragic events unfolding in Ukraine,’ Interim Chair Rob Riddleston commented.
‘Xpediator will not be immune from these challenges but to date, trading has been resilient. The group has a solid financial platform and with its asset light base is more shielded than some from energy and other cost inflation. We anticipate that in spite of these challenges, demand from the group's 10,000 customers will continue to be solid across all three divisions,’ he continued.
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