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DX Group Interim Loss Narrows In Tough Market Amid Turnaround Progress

29th Mar 2018 12:19

LONDON (Alliance News) - DX Group PLC said Thursday the parcel delivery firm's interim loss narrowed amid another challenging period which has continued into the second half as it sees "encouraging" signs its turnaround is succeeding.

For the six months ended December 31, pretax loss narrowed to GBP14.1 million from GBP29.3 million the year prior. This was after revenue rose to GBP146.6 million from GBP142.7 million the year before.

Profit performance was helped by a sharp fall in exceptional costs to GBP5.1 million from GBP28.8 million the year prior. This was after a significant fall in impairment charges during the current period to GBP5.3 million from GBP27.4 million the year before.

"Results in the first half reflect another challenging period for DX," DX Chairman Ron Series said. "However, the new management team, led by Lloyd Dunn, our CEO, has developed turnaround plans to set the business on the road to recovery and long-term profitable growth."

"We are very pleased to outline our turnaround plans for the business today, alongside proposals to strengthen the group's balance sheet and to raise GBP4.0 million in new equity funding," Series said. "This new capital will help fund our growth initiatives, including expanding the sales teams, adding new depots, enhancing the group's IT capabilities and developing the networks."

"DX is a company with many strengths," Series continued, "including a strong service culture and a compelling offering in several market sectors. We believe that we can unlock the latent strengths of the business and, while there are challenges ahead, we are tremendously encouraged by the expertise and capability across the group."

"Trading conditions remain challenging," Series cautioned, "but we are already seeing encouraging signs that our turnaround plans are gaining traction and expect this to build through the year and into 2019."

Shares in DX were 12% higher at 8.28 pence on Thursday.


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