- 14 July 2017
- Transport / Logistics Services
The DX Group has announced it is reorganising itself into two divisions, DX Freight and DX Express. There are also changes to the company’s board, as the freight and parcels firm moves toward a planned merger with Menzies Distribution.
In a statement issued, the Group said: “DX Express will comprise the DX Exchange, DX Secure, the Courier operations and Mail activities while DX Freight will comprise Logistics, DX 1-Man, and DX 2-Man.
“DX Express will be headed by Nick Cullen, DX’s existing Chief Operations Officer and DX Freight by Stuart Godman, who is currently Chief Commercial Officer.
“Both Divisional Managing Directors will report directly to the Board.”
In addition the CEO Petar Cvetlovic and Finance Director Daljit Basi are to step down from the board of DX.
James Hayward is to be Interim Chief Financial Officer, which is a non-Board appointment.
According to DX: “James has spent over 20 years working as an independent restructuring and transformation specialist and has been directly involved with over 40 companies at the Board level, both as an executive and advisor in the quoted and private sector.”
The changes take immediate effect.
Bob Holt, Chairman of DX, commented: “The changes we are making both to the Board of Directors and to the Group’s operational structure are aimed at supporting business transformation. In particular the reorganisation provides greater flexibility in managing costs and puts the Company in a better position to advance its operational and sales performance and to provide an enhanced service to its customers.”
Meanwhile, DX also reported that results for the financial year ended 30 June 2017 are expected to show revenues of approximately £292m and profits will be “in line with market forecasts”. DX Group will be making a full announcement on its financial results in September.
Major shareholder (and prominent critic of the running of the firm) Gatemore Capital have voiced their approval of the restructuring and board changes.
Liad Meidar, CIO and Managing Partner at Gatemore Capital Management, said, “We are pleased with today’s announcement from DX Group, and we welcome the organisational changes. We are also pleased that revenue and profit appears to be in line with expectations.
“Since February we have been publicly calling for the Board to re-focus on the freight business and end the failed OneDX integration programme.
“This announcement makes clear that the Board is taking meaningful steps in that direction.
“Our working relationship with the Board has become more productive, and we will continue to be supportive of their efforts to unlock the potential of DX Group’s freight business.”
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