UK delivery and freight logistics provider DX Group has had its best annual trading financial results in seven years.

Revenues for the financial year ending 2022 were up 16% year on year to £428.2 million. Adjusted pre-tax profit was up 68% to £20.2 million.

Substantial growth in DX Freight led the strong growth in revenues and profit. Specialising in irregular dimension and weight (IDW), the division saw revenue increase by 15% to £256.9 million, and operating profit grew 36% to £31.1 million. Productivity and efficiency improvements supported new business wins and strong growth in volumes.

DX Express, which specialises in time-sensitive, mission-critical and higher-value items, returned to growth. This saw an 8% increase in revenues to £171.3m and operating profit up 17% to £14.5m. While the Document Exchange business saw falls in volumes its parcels activity more than offset those falls. Part of the revenue growth came from the separation of the Document Exchange subdivision from the parcels delivery network, leading to greater efficiencies.

DX Group has begun a three year capital investment programme worth up to £25 million. In the first year it has invested £6.2 million into the depot network and IT. DX has opened eight new depots in the last year as well as upgrading two existing ones. The investment allows capacity for future growth, improved efficiency and enhanced service levels. Over the next two years it will had 13 new sites and will upgrade a further 10.

Ron Series, Executive Chairman of DX (Group) plc, commented: “These are excellent results in a year of challenges for the Group. Both revenue and adjusted pre-tax profit reached seven-year highs. The significant progress the Group has made reflects a well-executed growth strategy, underpinned by the major investment we have made in the business over recent years.

“The Group has a very strong balance sheet, with net cash of £27 million. We believe that DX remains very well- positioned to achieve its growth objectives in the current financial year despite the economic uncertainties.”