Annual profits and revenue grow for DX

The group, which also offers parcel freight, secure courier and logistics services, also saw revenue4 grow 10 per cent to £471.2m.

The growth was driven by strong performances at both DX Freight and DX Express.

DX invested £10.9m in depot network expansion, parcel handling equipment, electric vehicles and IT during the year.

DX Freight's revenue was up 10 per cent to £282.8m and operating profit up 22 per cent to £37.8m.

Two new depots opened at West Bromwich and Paisley and and two depots were expanded at Plymouth and Heathrow.

The group secured 15 new sites from the administrators of Tuffnells Parcels Express in June – a major development for the group, with benefits for DX Express as well as DX Freight,

DX Express revenue was up 10 per cent to £188.4m and operating profit up 22 per cent to £17.7m. Five new depots were opened.

Chief executive Paul Ibbetson said: “The group has delivered another strong performance, above our original expectations. Both divisions contributed increased revenue, margin and profit, which supported our return to the dividend list.

“The financial strength of the business, with its strong cash generation and balance sheet, has been key to our ongoing success, enabling us to continue to invest significantly in both divisions. We have invested across all areas of operations – including the depot network, parcel handling equipment, electric vehicle fleet and IT – and this will continue in the new financial year.

“We are mindful of the current economic headwinds, however, given the strong platform that we have established and the encouraging levels of new business that we have secured in the opening months of the new financial year, we look forward to another year of further progress.”