Delivery group DX sees trading continue to improve
A delivery group, which has its main freight hub in the Black Country, has seen trading improve as Covid-19 lockdown measures have continued to ease.
DX, which has its main hub in Willenhall and a courier site in Tipton, said trading in both the freight and express divisions has continued to improve since the company's last update on May 28.
Meanwhile, group revenue for June was only three per cent below previous forecast levels – set prior to the pandemic.
DX said the improved performance across both divisions mainly reflects recovery in volumes from existing customers but also some new business wins.
The group has continued to maintain operations at all of its depots and service centres after the Government's lockdown measures came into effect.
As a result, the board expects that revenue for the full year will be in line with current market forecasts.
The company's £10 million capital investment programme is progressing as planned, it added.
Ronald Series, chairman of DX, said: "Having launched our turnaround plan two and a half years ago, we are delighted to report the company's expected return to adjusted pre-tax profit.
"It demonstrates the hard work, expertise and resilience of our people. We have a clear vision for ongoing growth and remain wholly focused on the next stage of the company's development."
Liad Meidar, managing partner at Gatemore Capital Management, said: “We are pleased to see continued improvement at DX. This represents the first full-year profit since the current management team was installed, demonstrating the expertise of DX’s people and the successful completion of the turnaround plan, despite the disruption caused by Covid-19. As long-term investors in DX, we look forward to the company’s continued earnings growth in the coming years."
Full year results are expected to be announced in late September.
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