13th Feb 2014 13:34
LONDON (Alliance News) - Mail, parcels and logistics group DX Group PLC confirmed Thursday it plans to float on the London Stock Exchange's Alternative Investment Market.
DX will join Royal Mail PLC and UK Mail Group PLC as a London-listed postal company with an initial public offering led by Zeus Capital.
In its statement Thursday, DX said didn't say how much would be raised in the IPO or when the flotation would take place, and a spokesperson for the company wasn't immediately available to comment. However, The Times newspaper reported Thursday that DX Group will raise GBP170 million, valuing the company at GBP180 million.
DX, which was founded in 1975 and has 3,200 staff plus 2,100 couriers and owner/drivers, is one of a clutch of delivery firms taking on Royal Mail and its 150,000 staff. DX said it delivered 170 million items in 2013. It operates DX Exchange, a business-to-business secure delivery service which it claimed provides savings against Royal Mail prices.
DX said its DX 2-Man delivery service provides deliveries for retailers to hard-to-reach places such as the Scottish highlands and Shetland islands. In March 2012, DX acquired Nightfreight, which provides deliveries of irregular dimension and weight freight in the UK.
In the year to June 30, 2013, DX recorded earnings before interest, tax, depreciation and amortisation of GBP34.4 million on GBP306 million in revenue.
DX noted the general decline in mail volumes but said this is offset by forecast increases in parcel deliveries as more shopping is done online.
"DX is a customer focused and profitable business developing strong specialised positions for deliveries into discrete markets with a strong capability in the fast growing parcel delivery market," Chief Executive Officer Petar Cvetkovic said in a statement.
By Tom Waite; [email protected]; @thomaslwaite
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