Half year and annual revenue up for growing DX
Delivery solutions group DX says trading for the second half of 2022-2023 has been in line with management expectations.
Growth prospects have been enhanced by the addition of Tuffnells depots
DX, which offers parcel freight, secure courier and logistics services, said that in the six months to July1 the network had been expanded and reshaped.
Revenue for the financial year is expected to be approximately 10 per cent ahead of the previous year at £470 million for the group which has sites in the Black Country including a main hub at Willenhall and a DX Courier base in Tipton.
Capital expenditure over the financial year was £10.9m with DX continuing to invest in its fleet, including electric vehicles.
Both DX Freight and DX Express contributed increased revenue.
The agreement to take over 15 former Tuffnells Parcels Express depots and to take on volumes from former Tuffnells customers is a major development for the group. Management estimates that the annualised value of the additional volumes secured from former Tuffnells customers is approximately £35m to date. The process of absorbing the Tuffnells depots is now under way and the depot network will be further optimised over the next 18 months.
