DX expects to “significantly exceed” market expectations
DX, the provider of delivery solutions, including parcel freight, secure courier and logistics services has announced an update on current trading for the 53 weeks ending 3 July 2021.
DX’s trading performance since interim results were reported on 2 March 2021 has been stronger than expected. While trading at DX Express has been in line with management expectations, revenue growth at DX Freight is now expected to be around £10 million higher than previously anticipated.
This has been driven by significantly increased volumes, both from existing customers and through new customer wins. As a result, the Board anticipates that DX will significantly exceed existing market expectations for adjusted profit before tax in the current financial year, with an associated improvement in operating cash flows.
Given the Group’s strong financial position and continuing business momentum, the Board has decided to repay government furlough payments totalling £0.6m, received in support of the current financial year. With increased confidence in the Group’s growth prospects and the outlook, the Board also proposes to accelerate its plans to expand DX’s delivery network by targeting the opening of 12 new depots over the next two years.
The Board will provide a further update on trading and prospects in mid-July 2021.