24th Mar 2014 11:55
LONDON (Alliance News) - UK and Irish postal and logistics company DX Group PLC, which recently completed an initial public offering, said its losses widened in the first-half as finance costs crept up.
The company posted pretax losses of GBP19.5 million for the six months ended-December, compared with losses of GBP13.2 million, even though revenue rose to GBP151.9 million from GBP147.2 million a year earlier.
The firm said net finance costs increased significantly during the year to GBP28.1 million from GBP21.8 million, with net shareholder related interest amounting to GBP25.0 million up from GBP17.3 million.
Profit from continuing operations before exceptional items, accrued interest on shareholders loans and tax rose to 10.3% GBP6.4 million, from GBP5.8 million.
The company's three main divisions - mail and packets, parcels and freight and logistics - experienced contrasting fortunes.
Parcels and freight and logistics saw revenue rise during the period, with the logistics arm doing particularly well with growth of 26.5% as its operations where expanded.
However the mail and packets division saw revenue fall 4.6% to GBP56.4 million from GBP59.1 million in the corresponding period.
"Strong growth in DSA activity and stable DX Exchange revenues were offset by a reduction in revenue from the distribution of publications and some B2C retail activity following the strategic withdrawal from a number of unprofitable contracts," the firm said.
DSA Mail is DX's postcode-addressed mail service, while DX Exchange refers to its private business-to-business network which aims to provide a fast untracked delivery service.
Looking ahead, the company said as around three quarters of its revenues "attributed to market segments which are growing, including parcels, freight and outsized delivered there is a good level of resilience in the business model."
It is also hopeful that its freight business acquired in 2012, will reach its full potential.
As the financial results relates to a trading period prior to admission, no interim dividend has been declared.
However, based on its expectations of current and future trading a dividend will be paid for the year ending June 30 2014.
The stock was trading at 129.00 pence Monday morning, down 0.38 pence or 0.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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