Parcels firm aims to open new HQ in 2017

DX Freight wants to open its new £36 million distribution centre in Essington in the summer of 2017.

The company – formerly Nightfreight – is trying to get planning permission for a new HQ on 44 acres of land in Hobnock Road.

However, the plans have caused fury in the community, with the villagers firmly against them on the grounds of extra traffic and noise and the loss of green belt land.

DX chief executive Petar Cvetkovic said: "The hub is intended to replace DX's current sites at Willenhall and will create substantial additional capacity and significant operational benefits, including increased efficiencies and enhanced customer service levels. Subject to planning consent, our intention is to have the new hub operational by the summer of 2017."

If the move gets the nod, DX Freight would transfer its staff from its two existing sites in Willenhall in a process due to take 12 months.

Last week, 500 residents attended a fiery four-hour meeting over the issue, saying DX Freight was not welcome in Essington.

Residents point to extra traffic and noise and the loss of green belt land.

The parcels, mail and logistics group has reported a fall in income but a return to pre-tax profit for its last financial year. The DX group saw turnover slip from £304.2m to £297.5m for the 12 months to the end of June.

DX's revenue from parcels and freight declined by 5.8 per cent to £154.1m.

It went from a £55.7m pre-tax loss in the previous year to a £24.8m profit.

The group said it had been a satisfactory performance and it has made continued progress with the OneDX programme, which will see all its trading entities integrated under one company structure.

DX, formerly Nightfreight, wants to buy a site in Hobnock Lane, Essington, and relocate its Willenhall headquarters to the major new hub if planning permission is granted. Sales, operations, customer services, finance, human resources and information technology would be centralised there. However, the plans have caused outrage in the community, with residents saying it would bring too much noise, disruption and traffic.

The board says it is confident of its strategy to deliver long-term growth, and Mr Cvetkovic said: "We have continued to make steady progress with our OneDX programme." This substantial and ongoing investment across the business supports our aim of providing enhanced delivery solutions to our customers.

"It is also creating a more efficient operating structure to underpin our offering, which is based on a market-leading range of services, value and high customer service levels."

Mr Cvetkovic said trading conditions in the second half of its year remained challenging.

"The group continues to generate strong cash flows, which supports our investment programme, including our proposed major new hub, and our progressive dividend policy.

"Looking forward, our OneDX programme remains a key focus and we have a solid strategy supported by a robust balance sheet. Trading conditions continue to be tough but we are well placed to take advantage of any improvement and we have started the year in a positive manner," he added.

DX has continued to invest in its fleet, introducing double deck trailers for its trunk routes.

It has also introduced a new specially-designed, five-ton vehicle, which is currently exclusive to DX. These vehicles are better suited for the growing business-to-consumer market. DX has also created a 3.5-ton version to be introduced later this year.

As part of its development plans, it has already consolidated 21 sites into six locations.

"The bringing together of facilities provides opportunities for service enhancements and route optimisation. This will drive efficiencies and better vehicle utilisation whilst preparing for savings in our trunking operations," said Mr Cvetkovic.