Trading improving for DX group
Parcels delivery and courier group DX says trading in the first months of its current financial year is up on last year.
DX, which has sites in Willenhall and a DX Courier base in Tipton, is pressing ahead with a major investment programme.
The company's annual general meeting heard trading was continuing without any sign as yet of an adverse impact from the second national coronavirus lockdown.
Net new business across both divisions to date was encouraging and the new business pipeline remained very healthy.
With volumes better than expected and margins improving in DX Freight, the group now anticipates that DX is on track to perform materially better than current market expectations.
It is building on the foundations we laid down over the past three years and continuing to focus on improving productivity.
DX is investing in its delivery networks to support growth, and recently opened three new depots in Burnley, Westbury and Oxford. Two service centre openings and a further depot opening, as well as two major depot upgrades, are planned for the remainder of this financial year
Investment in operational parcel handling equipment and IT systems continues as part of the £10m investment programme that commenced last year.
In a statement to the AGM the group said: “The group remains in a strong financial position, with high levels of liquidity and significant headroom within its invoice discounting facility."
It expects to provide a further update on trading in February, ahead of the publication of interim results in March.
DX has two DX Freight sites employing 500 – including its main hub – in Willenhall.
It went from a £1.7 million loss to a £300,000 profit in its second full year of turnaround and group revenue increased two per cent to £329.2m in the 12 months to June 27.
