DX: “Profits for the year will be significantly below current market forcecasts”
The parcels, mail and logistics operator DX has issued a trading statement in which it warns that it “anticipates that proﬁts for the year will be signiﬁcantly below current market forecasts”. According to DX: “The challenge trading conditions referred to in the Company’s update on 22 November are continuing, including pressure on pricing.
“The business has also continued to experience margin erosion from the ongoing change in revenue mix.
“While there has been strong momentum and wins in the Logistics business, the expected growth in higher margin revenue from our DX Courier and Freight activities has not come through, impacting profitability due to the fixed cost nature of this network.
“In addition, we have not seen the DX Secure volume growth that we achieved last year.”
DX added: “In the light of these issues, the Board has reviewed its expectations of the Group’s performance and while material new contracts are now being implemented and the Company’s pipeline of new business opportunites is robust, it now anticipates that proﬁts for the year will be signiﬁcantly below current market forecasts.”