DX Group top bosses go in company shake-up

The company, which employs around 550 people at two major depots in Willenhall, said it had been 'an exceptionally challenging year'.

DX failed in its bid to build a £36 million super hub in Essington, following fierce objections from local villagers.

The company has said it is now looking elsewhere for an alternative site, possibly as far away as Rugby or Coventry.

In April the company also revealed it had slumped to a £500,000 loss amid a 'challenging' trading background, higher costs and lower profit margins.

On Friday the company revealed that chief executive officer Petar Cvetkovic, and finance director Daljit Basi had stepped down from the company.

At the same time the business is being split in two, as DX Express and DX Freight. DX Express will comprise the DX Exchange, DX Secure, the courier operations and mail activities, while DX Freight will comprise logistics, DX 1-Man, and DX 2-Man. DX Express will be headed by Nick Cullen, DX's existing chief operations officer and DX Freight by Stuart Godman, who is currently chief commercial officer.

The company said the reorganisation "is expected to provide greater flexibility in managing costs and puts the company in a better position to advance its operational and sales performance and to provide an enhanced service to its customers."

Meanwhile DX said its financial results for the financial year to the end of June were expected to show revenue of around £292 million, while pre-tax profit would be "in line with market forecasts". It has scored a number of contract wins, including renewing its deal with HM Passport Office.

DX chairman Bob Holt said: "The changes we are making both to the board of directors and to the group's operational structure are aimed at supporting business transformation. In particular the reorganisation provides greater flexibility in managing costs and puts the Company in a better position to advance its operational and sales performance and to provide an enhanced service to its customers.

"In a challenging year, we are pleased to have the support of our bank and remain firmly committed to acting in the best interests of all our shareholders."

The shake-up follows DX's agreement in June to acquire John Menzies' distribution arm via a reverse takeover.