DX sees strong growth in parcel freight
Deliveries group DX, which has sites in Willenhall and Tipton, says trading since the beginning of March has been stronger than expected.
DX Freight revenue growth is expected to be around £10 million higher than previously expected for the year to July 3.
The group, which also offers secure courier and logistics services, said parcel freight growth has been driven by significantly increased volumes, both from existing customers and through new customer wins.
The board anticipates that DX will significantly exceed existing market expectations for adjusted profit before tax in the current financial year, with an associated improvement in operating cash flows.
Given the group’s strong financial position and continuing business momentum, the board has decided to repay Government furlough payments totalling £600,000 received in support of the current financial year.
With increased confidence in the group’s growth prospects and the outlook, the board also proposes to accelerate its plans to expand DX’s delivery network by targeting the opening of 12 new depots over the next two years.
