2nd Feb 2022 12:09
(Alliance News) - DX Group PLC on Wednesday reported an 11% increase in first half revenue and said its trading momentum has continued in the third quarter.
The Slough, England-based parcel freight, secure courier and logistics company said trading for the half-year period to January 1 was in line with expectations.
Revenue was 11% higher year-on-year, DX said, despite "the tight labour market and customers' supply chain disruptions".
This strong trading has also continued into the third quarter of the financial year, it added.
The DX Freight division improved its volumes and margins compared to the same period last year.
Volumes in its DX Express division, on the other hand, were consistent with the first half of last year.
Nonetheless, DX Group said that net new business at both divisions remained "robust" and that the pipeline of new business opportunities is still "extremely healthy."
The company added that its network expansion plans "progressed well" in the 26 weeks period.
After the opening of four new depots and expansion through a further depot in the first half, two new depots were opened in early January, at Bodmin and Coventry. This was in line with plans and the new depots will support productivity improvements at DX Freight.
In addition, a further five depots are scheduled to become operational in the second half of this financial year.
Net cash as of period end totalled GBP14.5million, up 2.8% from GBP14.1 million on January 2 a year ago.
Furthermore, DX Group undrew its GBP20 million invoice discounting facility, giving the company "significant levels of headroom."
Shares in DX Group shares were untraded in London on Wednesday afternoon, last quoted at 30.00 pence.
By Abby Amoakuh; [email protected]
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