29th Sep 2014 08:02
LONDON (Alliance News) - DX Group PLC said Monday that its maiden full-year results were in line with market expectations as its admission to AIM in February "substantially strengthened" the company's balance sheet, and declared a final dividend.
The parcels, mail and logistics network operator posted a pretax loss of GBP55.7 million for the year to June 30, compared to a GBP1.9 million loss the year previous while revenue rose 2.1% to GBP312 million from GBP305.7 million.
DX Group said its pretax loss widened on exceptional costs of GBP13.6 million, compared to GBP2.2 million in 2013, and mainly related to impairment charges, and non-recurring costs of GBP49.2 million, which largely related to the pre-admission repayment of a debt instrument.
The company listed on AIM at the end of February. DX Group has proposed a final dividend of 2 pence per share. As the company was only listed for four of the 12 months to June 30, this represents a pro forma, post-admission equivalent full-year dividend of 6 pence per share.
For the eight months to June 30 it traded with a debt structure which has now been replaced, said the company, which included high coupon shareholder debt, all of which has now been eliminated. Pretax profit before this shareholder-related interest increased by 31% to GBP21.9 million from GBP16.7 million, said DX Group.
Before exceptional items the company reported a pretax profit of GBP7.1 million for the year, up from a GB300,000 profit the year before.
Earnings before interest, tax, depreciation and amortisation came in at GBP34.4 million, in line with the GBP34.4 million reported last year, and in line with market forecasts. During the year, the company implemented a change in the way that it finances its vehicle fleet at DX Freight - an underpinning delivery business that it acquired in 2012 - and, taking account of this, on a pro forma basis, EBITDA increased by GBP0.8 million after all finance and operating lease costs year-on-year, a rise of 2.4%.
DX Group said its maiden results were in line with market expectations and that it has made encouraging progress during the reporting year, including implementation of a turnaround plan and new operational initiative, with its admission to AIM "substantially strengthening" its balance sheet. The company adopts a positive outlook, and said that it is now operating from a strengthened platform that will help it pursue its growth strategy.
"Our recapitalisation and admission to AIM in February has marked an important point in DX's development. We are now very well placed financially and operationally to pursue our long term growth strategy, underpinned by a strong balance sheet and good cash flows," said Chief Executive Petar Cvetkovic.
"We have accomplished much in the year. Trading in the new financial year is in line with management expectations and we continue to view prospects for the new financial year positively as we implement our turnaround and efficiency programmes," Cvetkovic added.
Looking ahead the company is currently working on streamlining and developing its distribution network and aims to create a 'OneDX' culture and service offering, underpinned by enhanced technology and unified systems.
Shares in DX Group were trading 0.45% higher at 112.00 pence per share shortly after the market open Monday.
By Alice Attwood; [email protected]; @AliceAtAlliance
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