DX slides into profit

In a pre-close trading statement, DX Group has said that its annual results to the 30th June will show a profit. Results were in line with expectations with an operating profit of £3.2 million, as against a loss of £4.9 million in year end 2018. Revenue is expected to increase eight per cent to £322.5m.

In a news release DX aid that DX Freight benefitted from significant improvements in operational efficiency and customer service. “It continues to secure healthy levels of new business, which is improving the utilisation of the existing capacity in its network.”

DX Express “has further slowed the rate of attrition of the annuity revenue at the Document Exchange. Its Courier offering is growing, which will help offset the impact of the non-renewal of the HMPO contract due to expire in January 2020.”

The company believes it is well positioned to return higher profits in the coming 12 months, with a target of £7.7 million operating profit at the year end.

Liad Meidar, managing partner at Gatemore Capital Management, DX Group’s major shareholder, said: “Today’s trading update is a further sign that DX Group is heading in the right direction. We are pleased to see that the turnaround plan for the core business remains well on-track and are confident that management will continue to capitalise on this success and build DX into a freight and logistics powerhouse.”

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