DX Services PLC – Interim Results
DX Services plc is the UK’s leading independent provider of early morning, next day mail and parcels services. The group delivers over one million items each day and operates a UK wide, end-to-end network including collection, sortation and final mile delivery.
Financial highlights
* revenue was similar to last year at £64.6 million (2004: £66.8 million)
* operating profit before senior management transition costs of £0.8
million was £12.7 million (2004: £15.6 million)
* net cash generated by operations was £14.1 million (2004: £20.1 million)
* net debt was £70.0 million at the period end, after funding a share buy
back of £9.4 million
* basic EPS 8.3 pence (2004: 8.8 pence); adjusted EPS before non-recurring
costs 8.9 pence (2004: 10.7 pence)
* interim dividend will be 4.2p per share – an increase of 5%
Business highlights
* maintained revenues by consolidating high street business and winning
new parcels customers
* built service network strategy
* introduced new service centre operating model across network to increase
productivity
* launched first major DX advertising campaign in and around London
* rigorous cost control
Strategy
* Profitable revenue growth through redefined and reduced product
offering, which is aligned to the existing network.
* Roll out blue box network, focused on next day delivery with New Mail
and Document Exchange to merge
Paul Kehoe, Chief Executive, commented:
“We have an excellent platform in the ‘blue box network’, built around the existing Document Exchange. This allows us to be the best quality low-cost carrier of next day mail across the UK. To achieve our goals we have today brought forward proposals which will ensure that we control our cost base, reward our staff, create wealth for our shareholders and grow a sound and profitable business focused around our customers”.
Contacts:
Paul Kehoe, Chief Executive, DX Services plc 01753 630630
Peter Western, Acting Finance Director, DX Services plc 01753 630630
Jon Coles / Rupert Young, Brunswick 020 7404 5959
Analysts’ presentation
There will be a presentation to analysts and investors at UBS, 1 Finsbury Avenue, London EC2M 2PP at 09.00 on Tuesday 7 March 2005. Audio will be provided through a dial-in facility (listen only mode) by dialling +44 (0) 1452 561 263.
The audio will be recorded and available for ten days on 01452 550 000 (+44 1452 550 000 from outside the UK), access number 5759677£. The presentation will also be available via the Investors section of the group’s website at www.thedx.co.uk.
Interim report
The 2005 interim report will be posted to shareholders on 23 March 2006 and may also be accessed from that date via the Investors section of the group’s website at www.thedx.co.uk.
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INTERIM REPORT AND RESULTS
Operating review
DX is a next day delivery operation comprising of three services; the Document Exchange, parcels and a regulated mail service.
The Document Exchange
The Document Exchange continued to give an excellent service to its members. It provided a stable and secure cash flow from revenue of £41.0 million (2004:
£42.9 million), being 63.5% (2004: 64.2%) of the Group’s total. Whilst benefiting from the price increase introduced in April 2005, DX has felt the effects of operational changes in the financial services sector and some cyclical impact from the housing market. In addition DX has suffered from member losses since the demerger for a variety of reasons including lack of focus on the Document Exchange. This is now being addressed operationally and strategically and a number of customers have returned to DX.
Supplementary charges have remained at broadly the same proportion of total Document Exchange revenue as last year
