DX: We have established solid foundations upon which to move into our growth phase
DX (Group) plc, has released its preliminary results for the period ended 27 June 2020 – its strong performance largely driven by the improved performance of DX Freight.
Financial Key Points
- Revenue growth of 2% and first adjusted pre-tax profit since turnaround began
- Continuing performance improvement at DX Freight division contributed to the turnaround
- Net cash of £12.3m at 27 June 2020 was better than expected (2019: net debt of £1.3m)
- Capital expenditure of £3.4m (2019: £3.5m), part of a £10m investment programme in IT systems, the depot/service centre network, and new operational parcel handling systems
Coronavirus Impact & Response
- Group revenue fell by approximately a third immediately post-lockdown, but volumes steadily recovered from April and are now above levels anticipated pre-lockdown
- Resources switched to busier areas of Group, with increased demand for B2C services
- £10.4m of payments, principally VAT, deferred to preserve cash
- Utilised Coronavirus Job Retention SchemeRonald Series, Chairman, commented: “DX has made significant progress and the Company’s return to adjusted pre-tax profit, despite the challenges of the coronavirus pandemic, marks the completion of the first phase of its turnaround. These strong results were largely driven by the improved performance of DX Freight, and reflects the hard work we have put into this division over the past two years.
“The rapid response of our teams to the dramatic change in trading conditions caused by the coronavirus lockdown was excellent, and allowed DX to conserve cash and maintain operations safely. Delivery volumes are now above levels anticipated pre-lockdown.
“We have now established solid foundations upon which to move into our growth phase. We believe that there are significant opportunities for both divisions, and that we are in a strong position to rebuild profitability, by improving efficiency, productivity and margins.
“I have agreed with the Board that this would be an appropriate time for me to step back from an executive chairmanship to non-executive chairman, confident that we are well set for future growth and increased profitability.”
Lloyd Dunn, CEO, commented:
“The business has been transformed and revitalised under the turnaround plan we put in place in early 2018. I would like to thank everyone for their contribution to a successful outturn and for their response to the unprecedented situation that we have navigated over the last few months. I also extend my personal thanks to Ron, who has elected to step down from his executive role to become Non-executive Chairman at the Company’s AGM. I am delighted that we will continue to benefit from his valuable input and experience as we continue with the next stage of DX’s turnaround.”