19th Jul 2021 16:34
(Alliance News) - DX Group PLC on Monday announced that it expects its annual profit to exceed market forecasts, driven by good performances at DX Freight and DX Express.
Iver, England-based DX is a provider of delivery solutions, including parcel freight, secure courier and logistics services.
Following strong ongoing momentum at DX Freight, which has exceeded management expectations, and good progress at DX Express, DX Group now anticipates that the firm will "significantly exceed" market forecasts for adjusted pretax profit for the 53 weeks ended July 3, which stood at between GBP10.0 million and GBP10.3 million.
In the 2020 financial year, DX Group swung to an adjusted pretax profit of GBP1.8 million from a GBP200,000 loss a year before.
DX Freight's stellar performance has netted the company around GBP6 million more in revenue than previously anticipated.
"DX Express performed well, in line with management expectations, as lockdown restrictions lifted. Both divisions secured good levels of new customer wins and increased volumes from existing customers. These increased volumes, coupled with productivity improvements, have benefited operating margins, particularly at DX Freight," the group added.
DX has continued to expand its depot network, in line with growth plans. As well as adding capacity, this has also driven customer service benefits. Further investment in the depot network is on track, and a total of fifteen new depots are now planned over the next two years, the company said.
DX Group expects to publish its preliminary results for the 53 weeks ended July 3 in late September.
Shares in DX were up 1.0% at 32.33 pence each in London on Monday afternoon.
By Amrit Sahota; [email protected]
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