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Xpediator PLC (XPD)

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Tuesday 06 October, 2020

Xpediator PLC

Acquisition

RNS Number : 1599B
Xpediator PLC
06 October 2020
 

 

 6 October 2020

Xpediator Plc

("Xpediator" or the "Company" or the "Group")

Acquisition of UK based Freight Forwarder and Operator Nidd Transport

Xpediator, (AIM: XPD), a leading provider of freight management services across the UK and Central and Eastern Europe, is pleased to announce it has acquired the UK-based international groupage freight forwarder and operator, Nidd Transport Ltd ("Nidd") for £4.6 million.

Acquisition highlights:

· Nidd based in Ripon (North Yorkshire) specialises in daily express deliveries to mainland Europe by road with particular focus on France, Spain, Portugal and Germany as well as a providing a strong UK distribution platform particularly in the North of England.

· Established in 1984, Nidd has built up long-term customer relationships with Northern based businesses in the UK through a high-quality service provision of European and nationwide distribution and storage.

·Complementary acquisition with immediate cross-selling opportunities and a natural fit with the Group's existing operations.

· Generated revenue of £11.0 million, operating profit of £0.5 million and profit after tax of £0.4 million during the year ended 30th April 2020.

· Net assets include freehold property of HQ and warehouse valued at £2.1 million, as at 30 April 2020. 

· Current cash reserves of approximately £2.0 million.

· Total consideration of £4.6 million will be funded in cash from existing resources.

· Employs 65 people and specialises on road transport routes into France, Spain, Portugal and Germany using a mixture of its own fleet of 45 vehicles and trailers and subcontracted vehicles.

· Nidd is a founder member of Palletforce, providing a nationwide overnight UK delivery service.

· Acquisition is expected to be immediately earnings enhancing.

Nidd Transport

Founded by Tony White 36 years ago the business has evolved and developed a strong reputation for efficiency and excellent customer service. Providing daily road freight services into Europe primarily into France, Spain, Portugal and Germany, but also into other European countries. Offering part load and full loads to customers from a broad range of industries the focus is on speed and reliability. By being a founder member of Palletforce, a leading pallet network across the UK, this provides enhanced capability to deploy a full range of daily UK distribution services and additional income stream through Nidd being responsible for all Palletforce deliveries from the UK into Spain and Portugal.

Potential Acquisition Benefits

 

· Nidd's focus on western Europe complements Xpediator's focus on central and eastern Europe, Italy and Germany.

· Clear opportunities to cross sell Xpediator's services to Nidd's customer base and maximise carrying capacities to and from Europe.

· Synergies of linking UK national service offering, using Nidd's transport and distribution in the North with Xpediator Plc strengths in the Midlands and Southern regions.

· Customs clearance services of the enlarged Group differentiates Nidd's prospects going into a potential hard Brexit.

· Minimum integration costs, the business will continue to operate under the Nidd brand.

· Tony White intends to retire after a handover period and Nidd will continue to be run by the current management team whilst benefiting from the synergies of being part of a larger group.

 

Robert Ross, Xpediator CEO, commented, "We have known Nidd Transport for some time and its reputation for being an excellent regional freight forwarder. I am therefore delighted Tony has chosen to entrust us with the future of his business and all the people who work for Nidd. Our aim is simply to continue to grow the company and we are confident we can do so.

Our client bases are similar but do not have significant overlap and while our services our comparable our geographic focuses are different. There are therefore immediate opportunities to provide greater geographic coverage to both client bases and we expect both existing client bases to benefit from the enhanced service offerings."

Tony White, Managing Director, Nidd, said: "It was important to me to find the right buyer for our Company and I believe we have done so, ensuring it's long term success with a bright future for the loyal team of colleagues that have supported me over the years. While I am stepping away from the business I believe, by becoming part of the Xpediator Group, the future prospects for Nidd will be enhanced, in terms of continuing to provide our clients the high quality service they have enjoyed, together with being able to offer expanded services which will also create opportunities for the business  to gain new clients."

The information communicated within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.

 

Enquiries

Xpediator plc

Tel: +44 (0)330 043 2395

Robert Ross, Chief Executive Officer

 

Email: [email protected]

 

 

Cenkos Securities plc  (Nominated Adviser & Broker)

Tel: +44 (0)20 7397 8900

Max Hartley, Max Gould (Corporate Finance)

 

Nick Searle (Sales)

 

 

 

Novella Communications  (Financial Public Relations)

Tel: +44 (0)20 3151 7008

Tim Robertson

 

Fergus Young

 

 

About Xpediator:

Xpediator is a well-established international provider of freight management services. Established in 1988, the Group's international network of offices provides road, sea and air freight services, together with logistics and warehousing in the UK and Romania. The business offers integrated freight management within the supply chain logistics and fulfilment sector, through its three main areas: freight forwarding, logistics & warehousing and transport services. With headquarters in Braintree, Essex and country offices in nine CEE countries across 38 sites, the Group currently employs over 1,000 people and was successfully listed on London's AIM market in 2017.

For more information, please visit:  www.xpediator.com .

Alternatively, do follow us on Twitter at  @Xpediator  or find us on LinkedIn at  Xpediator Plc .

 

 

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