DX Group profits up 37%

UK logistics and specialist last mile delivery company DX Group has had a net profit of £16.8 million, up 37% on 2020 according to its interim trading statement for the financial year 20-21.

In the trading statement, DX Group’s Board said: “Since the last market update on 13 May 2021, the Group has continued to trade well, with strong ongoing momentum at DX Freight, ahead of management expectations, and good progress at DX Express. As a result, the Board now anticipates that DX will significantly exceed existing market forecasts1 for adjusted profit before tax for the financial year ended 3 July 2021.

“The outperformance at DX Freight is expected to result in the division’s revenue for the financial year being approximately £6m higher than previously anticipated. DX Express, which provides secure express deliveries, performed well, in line with management expectations as lockdown restrictions lifted. Both divisions secured good levels of new customer wins and increased volumes from existing customers. These increased volumes, coupled with productivity improvements, have benefited operating margins, particularly at DX Freight.

“The Group has continued to expand its depot network, in line with growth plans. As well as adding capacity, this has also driven customer service benefits. Since March 2021, three new DX Express depots have been opened, in Glasgow, Rotherham and Middlesbrough, and the existing DX Freight depot at Maidstone has been significantly enlarged. The Hoddesdon depot, which serves DX Freight, was also extensively upgraded in April. Further investment in the depot network is on track, and a total of fifteen new depots are now planned over the next two years.”

The full results are set to be published in September 2021.