DX Group ends year ahead of previous expectations
Delivery and logistics company DX updated the market on the 53-week period to 3 July on Monday, reporting that since its last update in May, it had continued to trade well, with strong ongoing momentum at DX Freight ahead of management expectations, and good progress at DX Express.
The AIM-traded firm said that as a result, it now expected to “significantly exceed” existing market forecasts for adjusted profit before tax for the year.
Reflecting the increase in profitability, net cash at year-end was also better than expected at £16.8m, making for a rise of 37% year-on-year.
“The outperformance at DX Freight is expected to result in the division's revenue for the financial year being approximately £6m higher than previously anticipated,” the board said in its statement.
“DX Express, which provides secure express deliveries, performed well, in line with management expectations as lockdown restrictions were lifted.
“Both divisions secured good levels of new customer wins and increased volumes from existing customers.”
Those increased volumes, coupled with productivity improvements, had benefited operating margins, particularly at DX Freight.
The group said it had continued to expand its depot network, in line with growth plans, explaining that as well as adding capacity, that had also driven customer service benefits.
“Since March, three new DX Express depots have been opened in Glasgow, Rotherham and Middlesbrough, and the existing DX Freight depot at Maidstone has been significantly enlarged,” the directors said.
“The Hoddesdon depot, which serves DX Freight, was also extensively upgraded in April.
“Further investment in the depot network is on track, and a total of 15 new depots are now planned over the next two years.”
The board said it remained confident about DX's prospects, adding that it would publish the group's preliminary results for the 53 weeks ended 3 July in late September.
At 1518 BST, shares in DX Group were up 1.04% at 32.33p.