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DX Services plc announces interim results for the six months to 31 December 2004, the first since the company was listed on the London Stock Exchange on 1 November 2004. DX delivers over one million items per day and operates a UK-wide, end-to-end network including collection, sortation and final mile delivery. Financial highlights include turnover increased by 0.6% to GBP66.8 million and operating profit was GBP 15.4 million before goodwill amortisation, exceptional demerger costs and interest, and after charging GBP 2.0 million of planned investment in developing the Mail service and independent business processes. Peter Brougham, Chief Executive, commented: ‘We are delighted to report that DX Services has delivered to our expectations in the six months to December 2004. The clear strategy that we outlined during the run up to demerger has served us well, and our positioning as a credible provider of high quality B2B mail and parcels services through our own end-to-end network continues to be unique in the deregulating market place and as such provides an excellent opportunity for growth.

British mail delivery company DX Services PLC said it is to cut costs by scrapping less profitable areas of its business after first-half profit declined 8 pct, hurt by a depressed housing market. DX Services, which each day delivers over one million items via a network of 4,500 mail exchanges, said it is to bring in new low-cost technology platforms to help it identify potentially more lucrative customers. ‘We’re not going to go out to fields with a box of materials for a farmer who’s way off the network. We’ve been looking at the top line. We’re going to re-incentivise our staff to look for profitable revenue,’ chief executive Paul Kehoe told AFX News. The company is facing the threat of increased competition as rivals vie for a slice of Royal Mail’s near monopoly by poaching its biggest corporate customers ahead of impending market deregulation. Germany’s Deutsche Post AG last year paid 5.5 bln eur (3.7 bln stg) for logistics group Exel, to gain a foothold in Britain, although Kehoe said there had as yet be no noticeable competitive impact from that deal.
He was speaking after DX Services revealed pre-tax profit fell to 10.2 mln stg in the six months to Dec 31 2005 from 11.1 mln. Sales declined 3 pct to 64.6 mln.