Following the success of its recent turnaround programme, DX Group has reported strong trading figures in its half year results for financial year 20-21.
In the 27 weeks to 2 January 2021, revenue grew by 7% to £182.7 million. Adjusted operating profit went up to £3.8 million compared to £1.7 million in 2020.
DX Freight saw very strong growth, with revenues growing by 19% compared to H1 of last year. The logistics company has opened three new sites at Westbury, Oxford and Burnley and two more are planned to be opened later this year.
Its DX Express division didn’t do so well, in part due to the loss of the HM Passport Office delivery contract in 2018-19 and restrictions on business due to the pandemic. B2B deliveries fell in volume while its less efficient B2C deliveries saw growth. Revenues in the division fell by 5% to £79.3 million and profits dropped to £7.4 by comparison to £11.1 million in 2019-20.
The Group’s £10 million capital investment programme is due for completion later this year, going into improving its IT systems and sortation systems at its hubs and depots.
Lloyd Dunn, CEO of DX, commented: “This is an excellent performance from the Group, despite the challenges created by the coronavirus pandemic for some areas of operations. Strong volume growth at DX Freight has been the principal driver of growth, offsetting the anticipated challenges at DX Express.
“Our focus is now on rebuilding profitability, having returned DX to profit in the last financial year. We will achieve this through continued volume and margin growth, driven by high service levels, and efficiency and productivity initiatives. Our £10m capital investment programme, now in its second year, will support our plans across both divisions.
“Trading in the second half is significantly ahead of the same period last year, in line with our expectations, and with anticipated levels of new business, as well as greater clarity over a return to more normal levels of activity, we look forward to another year of continued progress. Looking further ahead, we view prospects with an increasingly level of confidence.”
