New Board at DX unveils “turnaround” plans and growth initiatives
Revenue for the six months up to 31 December was up at £146.6m, compared to £142.7m in 2016. However, in terms of EBITDA the company reported a loss of £4.4m, compared to a profit of £3.9m in 2016.
In a statement sent to Post&Parcel today (29 March), DX said it is proposing to redeem its Convertible Loan Notes and to raise £4m to support its growth initiatives.
DX said the new capital raised will be “invested in the business, including expanding the sales teams, adding new depots, enhancing the Group’s IT capabilities, and developing the networks”.
DX added its new leadership team, led by Ron Series as Chairman and Lloyd Dunn as CEO, have embarked on a “wide-ranging restructure of the Company’s operations” – and key to their turnaround strategy is “placing depots and service centres at the heart of DX”, thereby “giving greater operational responsibilities and authority to general and regional managers”.
Dunn commented: “Following a careful review of the business it is clear that there is a great foundation to build upon with market leading products, a strong service culture supported by a loyal and invested team. We’ve been especially impressed by the quality of the people working within the business who want to deliver an excellent service and are committed to the future of the company.
“Key to the early success of our plan has been devolving accountability to depot general managers and regional directors, who are being given greater operational responsibilities and authority. This is driving the business supported by the creation of a commercial function, improving the quality of the contracts we win and manage. We have excellent products that are market leading in certain sectors, which, through our new structure, are improving and reaching the service level previously enjoyed by our customers.
“It’s clear that our new structure and strategy is already making progress. This, combined with the support of our major shareholders, means we can provide the necessary investment in sales capability, operations and IT. DX is a sleeping giant – if we keep our focus and momentum, DX will once again be a force to be reckoned with.”