Back on track
The latest update from XPD reads well. Trading volumes have almost returned to pre-COVID-19 levels, aided by the breadth of coverage across Europe. Meanwhile, the cost base is permanently lower, following swift action at the start of the crisis.Cash levels are higher than at the same stage a year ago standing at £4.2m end of June, only behind year-end levels owing to the payment of deferred consideration. Such is the confidence within the business that management ended the voluntary pay reduction scheme a month earlier than initially anticipated.
Activity in the UK was harder hit because of the COVID-19 pandemic, yet parts of Central and Eastern Europe only saw modest disruption. Ahead of lockdown there were issues across several UK businesses which management were already dealing with. Strong performances, relative to the remainder of the Group, were evidenced in Lithuania, Bulgaria and to a lesser extent, Romania. Freight Forwarding and Pall-Ex Romania have fared particularly well.
While it remains too early to reinstate estimates, we remain encouraged by the improving trading levels, the permanent lowering of the cost base and action to put out fires. The shares are strongly supported by cash and the NAV.
Equity Development enables companies to become better understood and supported by investors. Since our launch in 1996 we have consistently focused on helping our clients improve their communication and relationships with both existing and potential shareholders. Our clients have come from a wide variety of sectors and domiciles, are both private and quoted and range in size from micro-cap to $multi-billions. We offer free access to company research notes written by experienced analysts. These notes include detailed forecasts, financial models and a fair value. We host regular Private Investor Forums at which investors have the opportunity to hear company directors present, and to ask questions. These are free to attend. We broadcast live Webinars with company management that include active Q&A. We also make the recordings available online. We arrange face to face meetings between private investors and company management. We are active users of Twitter, commenting daily on company news, share price moves, Directors’ Dealings, Equity Development Research Notes & Events.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.