Half year revenue and profits up for DX Group
Delivery and freight solutions group DX saw growth in both turnover and profit for the half year to the end of December.
It was its strongest set of interim results in seven years.
An interim dividend of 0.5p per share has been declared with a total dividend of 1.5p targeted for 2022-2023.
Revenue was up 15 per cent to £231.3 million for DX, which has sites in Willenhall and a DX Courier base in Tipton.
It was driven by new business wins, price increases and strong customer service levels
Adjusted pre-tax profit rose 96 per cent to £9.2m.
DX Freight revenue increased 15% to £137.1m and operating profit was up 56 per cent to £16.2m
Revenue for DX Express rose 14 per cent to £94.2m and operating profit increased 31 per cent to £8m
A 20 per cent growth in parcels revenue more than offset expected revenue erosion from document exchange.
DX is in the second year of its £20m to £25m capital investment plan to support growth and drive operational improvements and margin gains.
Chief executive Paul Ibbetson said: “The group performed strongly, with both divisions contributing higher revenue and expanded margins. Trading was helped by the easing of customer supply chain and labour market pressures.
“We are also pleased to return to the dividend list after six years. It reflects the success of our turnaround and growth plans, which commenced in 2018, as well as our confidence in the group’s future prospects.
“We are now in the second year of our £20-£25m capital investment plan, which supports our growth ambitions and will help to drive further operational improvements and margin gains. Trading to date in the second half, traditionally our stronger period, is in line with expectations, and we believe that despite economic headwinds, the group is well-placed to meet its targets for the financial year.”
