UPDATE 1-Delivery company DX Group to raise capital; posts HY core loss

March 29 (Reuters) - UK mail delivery firm DX Groupsaid on Thursday it plans to raise about 4 million pounds tosupport an ongoing turnaround plan, after posting a core lossfor the half-year, largely due to its struggling freightbusiness.

The company - now reorganised into two divisions, DX Freightand DX Express - said early benefits from the turnaroundstrategy were already apparent.

"Major shareholders (are) fully supportive of turnaroundplans," DX Group said in a statement, adding that it planned toraise capital by issuing ordinary shares at 7.41 pence each.

At 0721 GMT, shares in the company were up 14.7 percent at8.50 pence.

Activist investor Gatemore Capital Management, DX's largestshareholder, had earlier opposed the company's plan to buy thelogistics arm of John Menzies in a deal which wouldhave given Menzies majority control of DX. The deal was calledoff in August.

Loss before interest, tax, depreciation, amortisation andexceptional items stood at 4.4 million pounds ($6.20 million)for the six months ended Dec. 31, compared with a profit of 3.9million pounds a year earlier.

DX Freight was underperforming, the company said. Thefreight unit reported a wider 16 pct EBITDA loss of 10.9 millionpounds during the period.

"Trading conditions remain challenging, but we are alreadyseeing encouraging signs that our turnaround plans are gainingtraction and expect this to build through the year and into2019."

The mail, parcels and courier services company also said itincurred an impairment charge of 5.3 million pounds, related toits turnaround plan.

($1 = 0.7102 pounds)(Reporting by Radhika Rukmangadhan in Bengaluru; Editing bySunil Nair)