DX Group projects buoyant results for financial year

Despite the lockdown, as an essential service provider DX Group has said it projects above-forecast profits for the financial year ending 27 June 2020.

Since its last trading update on 16 April, DX Group has experienced a slow and steady recovery in trading. Both DX Freight and DX Express have seen better results than the Board expected, even with Group revenue still 10-15% below expected seasonal levels. The Board now projects adjusted operating profits to be ahead of market forecasts and it is to generate a small profit before tax.

There has been increased demand for B2C deliveries and two-man deliveries in this segment. B2B deliveries have seen an uptick after an initial steep decline after lockdown was imposed. Reduced road traffic and B2C customers being generally at home for their deliveries has improved figures too.

Ronald Series, Chairman, commented: “This period has demonstrated the resilience of the business, and trading since mid-April has recovered more quickly than we anticipated at the beginning of the UK’s lockdown, although it is still 10-15% below the levels we would expect at this point in the year. Our teams have responded very flexibly to the changed environment, including a shift to more B2C deliveries, and we have continued to provide customers with an excellent level of service during this challenging time.

“We remain well-positioned to deliver further recovery in volumes, and will continue to control costs carefully.”