- 3 March 2020
- Transport / Logistics Services
After its seriously troubled recent past, delivery and logistics company DX Group says it is on track to post a profit for the first time in five years.
Its first half financial year (H1) results, DX Group showed its revenue to be up 8% to £170.1 million. Adjusted loss before tax fell by 74% to £1.2 million.
DX Freight led the turnaround. Productivity, customer services and commercial processes saw DX Freight reduce its operating losses by 65% to £1.9 million. DX’s ‘Irregular Dimensions and Weight’ service, DX 1-Man, performed especially strongly, with sales up 18% to £56.6 million.
Ronald Series, Chairman, commented: “The hard work of the last two years is continuing to pay off, as the significant improvement in these first half results show. The key factors driving the improvement are higher levels of customer service and operational gains from better delivery productivity and more efficient trunking and sortation across the network.
“We have initiated a £10 million capital investment programme, which will be spent over this financial year and the next to support further growth of the business. The programme will be fully funded from existing resources.
“Trading in the second half is marginally ahead of the same period last year. The potential effects of the spread of coronavirus on customers’ supply chains are, as yet, hard to predict but it is prudent to expect a slight softening in volumes. Nonetheless, we expect the Group to return to pre-tax profit this financial year and it remains well positioned to continue to grow profitably in FY21 and beyond.”