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Xpediator PLC on Monday reported a rise in interim revenue, but its profit suffered a plunge.
Shares were down 12% at 28.98 pence each on Monday morning in London.
For the six months that ended on June 30, the Braintree, England-based freight management services provider reported a 50% revenue rise to £189.3 million from £126.6 million a year ago, reflecting ‘continued positive trading in its Central Eastern European freight forwarding operation, in spite of the conflict in Ukraine’, it said.
Pretax profit, however, plummeted by 90% to £235,000 from £2.3 million, as administration costs increased by 56% to £41.0 million from £26.3 million a year ago.
Xpediator also recorded a goodwill impairment of £1.5 million in relation to Delamode Anglia Ltd, its largest UK freight forwarding business.
The company suspended its interim dividend, compared to 0.50 pence per share a year prior. Xpediator said it wants to focus on reducing net debt.
Net debt amounted to £8.0 million as at June 30, compared to £4.8 million a year before.
‘The increase in net debt is primarily due to an increase of £5.4 million in borrowing from Investec which was used to cover the losses in the two UK trading entities and the increased central costs brought about by the implementation of a shared services centre,’ the company explained.
Looking ahead, Xpediator said its business divisions are trading well, as it looks forward to the future with confidence.
Interim Chief Executive Officer Mike Stone said: ‘The company remains on track to meet full year management expectations due to the ongoing strength in customer demand and the improving performance of those UK businesses which under-performed in the first half.’
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