Half year revenue up 11pc for DX

DX,which has sites in Willenhall and a DX Courier base in Tipton, said the increase was driven by ongoing excellent progress in its freight division and the growth of its parcels service.

Adjusted profit from operating activities in the six months to January 1 rose 24 per cent to £7.3m.

The DX Freight division saw revenue rise 15 per cent to £119.1m, with strong volume gains and new business wins from the one and two-man delivery services.

Revenue at DX Express increased by five per cent to £82.9m, a reverse on the recent decline that reflected the expansion of the parcels service.

Investment in the business continued, with £3.2m of capital expenditure on sites, equipment and IT, including the opening of four new delivery depots.

Trading in the current financial year, which runs to July 1, 2023, to date is in line with expectations.

Executive chairman Ron Series said: “DX has traded well and driven operational improvements across the business while navigating the challenges caused by the pandemic, including supply chain disruption and labour shortages.

“DX Freight continued to make excellent progress, and parcels growth at DX Express has been strong as the division broadens its focus. We have increased the scale and rate of our investment in the group, opening four new depots in the first half, and investing in existing sites, IT and parcel handling equipment. Further major investment continues.

“As already reported, with second half trading better than expected, helped by easing supply chain issues, full year results are expected to significantly exceed management targets. This will result in another year of improved underlying performance and profitability.

“The board believes that the Group remains well-positioned for continued progress in the current financial year."