DX: the Group remains well-positioned for continued progress in the current financial year

DX, the provider of delivery solutions including parcel freight, secure courier and logistics services, has today published interim results for the first half of its financial year ended 2 July 2022, as well as details of its new capital allocation policy.

• Revenue for the half was up 11% year-on-year to £202.0m, driven by ongoing excellent progress in DX’s Freight division and the growth of its parcels service
• Adjusted profit from operating activities rose 24% to £7.3m and adjusted operating margins rose from 3.2% to 3.6%, reflecting higher volumes, efficiency and productivity improvements, and the implementation of price increases to offset cost pressures
• The DX Freight division saw revenue rise 15% to £119.1m, with strong volume gains and new business wins from the 1-man and 2-man delivery services
• Revenue at DX Express increased by 5% to £82.9m, a reverse on the recent decline that reflected the expansion of the parcels service
• Investment in the business continued, with £3.2m of capital expenditure on sites, equipment and IT, including the opening of four new delivery depots
• As previously announced, H2 trading was strong and FY 2022 results are expected to be significantly ahead of previous management targets. FY 2023 trading to date is in line with expectations
• DX’s Capital Allocation Review, announced today, will see a progressive dividend policy commence in FY 2023 with an expected dividend of 1.5p

Ron Series, Executive Chairman, commented:

 “DX has traded well and driven operational improvements across the business while navigating the challenges caused by the pandemic, including supply chain disruption and labour shortages.

 “DX Freight continued to make excellent progress, and Parcels growth at DX Express has been strong as the division broadens its focus. We have increased the scale and rate of our investment in the Group, opening four new depots in the first half, and investing in existing sites, IT and parcel handling equipment. Further major investment continues.

 “As already reported, with second half trading better than expected, helped by easing supply chain issues, full year results are expected to significantly exceed management targets. This will result in another year of improved underlying performance and profitability.

 “The Board believes that the Group remains well-positioned for continued progress in the current financial year ending 1 July 2023, despite economic headwinds. These results demonstrate how strongly the business is performing both operationally and financially and underlines the Board’s confidence in the Group’s prospects. Reflecting this, we are pleased to confirm our intention to recommence paying dividends in the current financial year and to adopt a progressive dividend policy thereafter. We also intend to use the existing share buy-back authority to undertake market purchases. The aim of this is to minimise dilution resulting from the exercise of options pursuant to the Company’s Performance Share Plan 2017.”