DX profits fall amidst company turmoil

Announcing its interim results the six months to the 31st December 2016, struggling delivery company DX said that its EBITA had dropped to £3.9 million from £5.6 million in 2015. Revenues however increased from £141.6 million in 2015 to £142.7 million.

This news comes amidst turmoil in senior management and a potential merger with strongly performing Menzies Distribution. On Monday Apex Insight reported how the biggest DX Group shareholders Gatemore had opposed the proposed merger, that in turn came after Gatemore had announced an EGM to replace much of the DX board of directors.

Referring to the financial results, Petar Cvetkovic, DX Group’s chief executive officer, said: “Results have been impacted by the trading pressures reported in February and we have since initiated a wide-ranging review of the Company’s operations to improve financial performance and drive revenues. We have also significantly strengthened our senior management team and have been working with a business transformation specialist since mid-January.

“We are pleased with progress with recent initiatives and are encouraged by recent new business wins, including our major contract with Avon UK. Our pipeline of new business is also currently standing at its strongest level in recent years.

“The Board remains highly focused on implementing measures to turnaround business performance and in addition is currently in discussions regarding the potential combination of DX and the Distribution division of John Menzies. We believe that the combination of the businesses has strong strategic logic for all stakeholders and represents an opportunity to deliver significant value to both companies’ shareholders. We will provide a further update in due course.”
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