13th Nov 2015 10:58
LONDON (Alliance News) - Parcels, mail and logistics operator DX Group PLC Friday said that it now expects its profits for its current year to end-June 2016 will be "significantly below market forecasts."
The company had previously reported that trading conditions in its current year remain challenging, with pricing pressure remaining a significant factor. However, it said Friday that trading patterns in its first half to date have deteriorated.
In particular is DX Exchange operation is experiencing a higher than expected level of volume erosion, and there have been increased cost base pressures. Additionally, its new business pipeline in its parcels operations is converting more slowly.
Revenue in the first four months are down 5.3% compared to the previous year, and DX Group now expects profits to significantly miss current market forecasts.
"This announcement is very disappointing. However we continue to position the business for long term success, creating a more efficient operating structure to support our services under our OneDX programme. The fundamentals of the business remain robust and while trading conditions are challenging, we are building strong foundations for future growth," said Chief Executive Officer Petar Cvetkovic in a statement.
Shares in DX Group were down 13% at 73.82 pence Friday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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