DX issues interim results
DX Group yesterday (29 February) announced its interim results for the six months up to 31 December 2015. The company reported a revenue of £141.6m, down from £147.4m in 2014, and a loss before tax of £87.1m – compared to a profit of £9.9m in the previous year.
However, the loss was caused by an £88.4m “goodwill impairment” charge, which reflects “the challenging industry conditions and the decline in profits”. Before this “exceptional item” was added to the equation, the company’s pre-tax profits were £1.3m, compared to £9.9m for the same period in the previous year.
On a more upbeat note, DX focused on its plans to move forward with the new central hub in the West Midlands (subject to planning permission and developer funding).
The company statement said that the project will
- require no additional debt borrowings for DX
- provide for significant operational and financial benefits
- enable DX management to remain focused on delivering the OneDX strategy.
Sources report that the new hub is scheduled to open in late summer / autumn 2017 – and there will then be a phased relocation of existing hub operations.
Commenting on the results, Petar Cvetkovic, Chief Executive Officer of DX, said: “Half year results are in line with revised management expectations, having been substantially impacted by the specific trading pressures outlined in November. The management team continues to focus on responding to these issues.
“Although market conditions remain difficult, we have completed the managed exit of a number of unattractive contracts and have seen our sales team start to secure attractive new contracts. In addition, we continue to make steady progress with our strategic OneDX programme including our plans to develop our new central hub.
“Despite the current headwinds to the business, and with much to do still in the seasonally important second half, the Board anticipates that the Company will trade over the full year broadly in line with its expectations. We continue to position the Group for longer term sustainable growth and the Board remains confident in the medium term outlook for the Group.”