Loss reduces as DX turnaround continues

The group, which has two sites in Willenhall employing around 500, offers parcel freight, secure, courier and logistics services

The loss reduced by 62 per cent from £14.1m a year before to £5.3m.

DX, which has its head office in Slough, said that a new group structure and re-organisation was helping to drive improved performance.

Two depots re-opened, including one at Cannock, and a new depot is to be opened in Kent in the second half of its financial year.

Chairman Ronald Series said: "DX's turnaround continues to progress encouragingly, and the group's results are in line with management expectations.

"A fundamental element of our turnaround strategy is devolving accountability to our local depots and service centres and this has now been implemented across the group. Alongside this, we have restructured our sales teams, introduced new pricing policies and are focusing on operational efficiencies and service levels across both divisions.

"These initiatives are now beginning to bear fruit and DX remains well positioned for further performance improvement. Trading in the second half has improved over the same period last year and we remain confident of achieving our targets for the full year."

DX Freight remains loss-making, but there was a 16 per cent growth in the division's revenue to £78m. DX Express's revenue was flat at £79m

The group said it was not expected that Brexit would have a material impact either on the operations or the financial performance of DX but it remained mindful of the potential impact on general economic activity and the effect it might have on customers.

Liad Meidar, chief investment officer at Gatemore Capital Management, which is DX’s largest shareholder, said: “We are pleased by today’s results, which are a further sign that DX Group is heading in the right direction. We remain confident in management’s ability to implement its plan to deliver long term growth, and look forward to continuing to work with the team.”