Logistics company DX Group has reported that annual revenues fell from £297.5 million to £287.9 million at the end of Financial Year (FY) 2016. This led to a loss before tax of £87.2 million, a worrying sign for the company.

EBIT dropped from £3.7 million to £18 million and the adjusted profit before tax and exceptional items was down from £26.7 million in FY2015 to £11.5 million in FY2016.

In addition the balance sheet had exceptional (non-recurring) items of £92.1 million that included a ‘goodwill impairment’ of £88.4 million that DX describes as a “non-cash charge which reflected challenging industry conditions and profit decline”.

As a result for the company already struggling with reduced revenues the upshot was a reported loss before tax of £87.2 million as compared to a profit of £24.8 million last year.

Commenting on the results, DX Group’s Chief Executive Officer Petar Cvetkovic said: “It has been a challenging year, with the specific trading pressures we reported in the second quarter of the year having a substantial impact on profitability.

“Our focus has been on responding to these pressures while also driving forward our ‘OneDX’ programme and further improvements to our already high levels of customer service.

“We continue to take positive steps to address the Group’s performance and to support this we are making further targeted investment in IT and sales.

“While there are still uncertainties ahead as we await the outcome of the HMPO tender process and our planning appeal, we have confidence that our business transformation plans will deliver long term benefits.”
 
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