- 1 March 2016
- Transport / Logistics Services
The woes for DX Group continue amidst continuing speculation about the Group’s Chief Executive Petar Cvetkovic, as the company reported losses for the six months to the 31 December 2015.
The business mail company reported revenues of £141.6 million, down from £147.4 million in 2014 and a loss before tax of £87.1 million, compared to a profit last year of £9.9 million.
The loss, the company claim is caused by an £88.4 million “goodwill impairment” charge, reflecting “the challenging industry conditions and the decline in profits”. Before this “exceptional item” was added to the equation, the company’s pre-tax profits were £1.3m, a significant drop on last year’s £9.9 million.
DX Group focused on its plans to move forward with a new central hub in the West Midlands, subject to developer funding and planning permission. According to the company the project will,
“require no additional debt borrowings for DX
provide for significant operational and financial benefits
enable DX management to remain focused on delivering the OneDX strategy.”
The new hub is scheduled to open in the latter half of 2017 and there will be a phased relocation of existing hub operations.
The embattled Chief Executive of DX Petar Cvetkovic, said: “Half year results are in line with revised management expectations, having been substantially impacted by the specific trading pressures outlined in November. The management team continues to focus on responding to these issues.
“Although market conditions remain difficult, we have completed the managed exit of a number of unattractive contracts and have seen our sales team start to secure attractive new contracts. In addition, we continue to make steady progress with our strategic OneDX programme including our plans to develop our new central hub.
“Despite the current headwinds to the business, and with much to do still in the seasonally important second half, the Board anticipates that the Company will trade over the full year broadly in line with its expectations. We continue to position the Group for longer term sustainable growth and the Board remains confident in the medium term outlook for the Group.”