DX narrows losses as turnaround strategy begins to bear fruit

Logistics group DX narrowed pre-tax losses by more than half in the first six months of its trading year, driven by a slight increase in revenues and a series of benefits stemming from its turnaround strategy.

Pre-tax losses were cut bt 62% in the first half of its trading year to £5.3m, while revenues rose 7% to £157m, in line with expectations.

DX's EBITDA losses also fell 43% to £2.5m and losses per share were reduced 79% to 0.9p.

Net debt was slashed 86% to £3.5m and cash outflows were cut 85% to £1.4m.

The AIM-listed company has been in the middle of restructuring efforts since a series 2017 as a result of a series of issues, including legal disputes, a police investigation, a shortage of qualified drivers and difficulties at one of its projects.

However, DX told investors on Tuesday that its initiatives were "now beginning to bear fruit" and that it was "well positioned for further performance improvement".

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

Looking forward, Series added: "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."

As of 1200 GMT, DX shares had picked up 1.72% to 10.43p.