Express & Star

DX investing £3.6m to upgrade depots

Delivery solutions group DX is investing £3.6 million in depot upgrades.

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The group offers parcel freight, secure courier, and logistics services and has sites in Willenhall and a DX Courier base in Tipton.

The £3.6m is already being deployed and investment is expected to be completed by early July 2023, supporting the gGroup’s ambitious growth plans. This is in addition to the substantial investment under way in new depot openings.

DX is implementing major improvements across its nationwide depot network. These have led to increased capacity, improved productivity, and raised efficiency levels.

In the DX Freight division, which specialises in the delivery of irregular dimension and weight items, upgrades are under way or have been completed at depots in Exeter, Middlesbrough, Northampton, Plymouth, and Thatcham. DX has installed new raised docks, expanded loading areas, and made energy efficiency improvements. In the DX Express division, which handles documents and parcels, significant upgrades have been made at Gatwick and at the national hub in Nuneaton. These include additional mechanisation as well as environmental initiatives.

DX opened eight new depots over its last financial year, and by the end of its current financial year, in July 2023, the group expects to have opened a further eight new sites. DX is in the second year of a major three-year investment programme, which is anticipated to invest £20m to £25m across the group. This investment encompasses expanding the depot network, vehicles, parcel handling equipment, and IT.

Earlier this month the group reported its strongest annual trading results in seven years, with revenue for the year to July 2 up by 12 per cent to £428.2m and adjusted pre-tax profit up 68 per cent to £20.2m.

Executive chairman Mark Hammond said: “We have ambitious growth plans and the significant investment we are making in our depot network – both in new and existing sites – will underpin continued growth and improvements to customer service and operational efficiencies.

“Our depot upgrade programme is well under way across both our divisions, DX Freight and DX Express, and we are on course to complete around £3.6m of investment in existing depots by early July 2023, with additional substantial investment going into new depot openings at the same time.”

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