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Trading Update

28 May 2020 07:00

RNS Number : 1347O
DX (Group) PLC
28 May 2020
 

28 May 2020

AIM: DX.

 

DX (Group) plc

("DX" or "the Group" or "the Company")

 

A leading provider of delivery solutions,

including parcel freight, secure, courier and logistics services

 

Trading Update

 

Following DX's announcement on 16 April 2020 regarding the impact of the global coronavirus crisis on the business, the Company is pleased to provide a further update on current trading for the financial year ending 27 June 2020. As an essential service provider, DX has continued to maintain operations at all its depots and service centres since the Government's 'lockdown' measures came into effect.

 

The Company has experienced a slow and steady recovery in trading since 16 April. Trading in both DX Freight and DX Express has been better than the Board anticipated, although Group revenue is still approximately 10-15% below expected seasonal levels at this point in time. As a result of the improvement and taking into account the outlook for the remainder of the financial year, the Board now expects the Group to generate a small profit before tax in the second half of FY20 and for revenue and adjusted EBITDA for the full year to be ahead of current market forecasts1.

 

In responding to lockdown conditions, the Company has adapted to the increased demand for B2C deliveries and its business mix shows a stronger weighting to B2C activity than normal, in particular for 2-Man deliveries. After an initial steep decline following lockdown restrictions, B2B activity has improved over the period as customers have adapted to conditions in their respective markets. Operationally, the Company has benefitted from reduced road traffic and from B2C customers being at home to receive deliveries, which has allowed for slightly improved delivery productivity.

 

The Company continues to manage costs tightly, whilst re-introducing some costs into the business as volumes have recovered. It is also maintaining a good level of liquidity headroom. Net debt at 25 April 2020 was £2.0m.

 

A further update will be provided in mid-to-late July in a pre-close trading statement.

 

Ronald Series, Chairman, commented:

 

"This period has demonstrated the resilience of the business, and trading since mid-April has recovered more quickly than we anticipated at the beginning of the UK's lockdown, although it is still 10-15% below the levels we would expect at this point in the year. Our teams have responded very flexibly to the changed environment, including a shift to more B2C deliveries, and we have continued to provide customers with an excellent level of service during this challenging time.

 

"We remain well-positioned to deliver further recovery in volumes, and will continue to control costs carefully."

 

 

1, The Board believes that consensus market figures for revenue and adjusted EBITDA (IAS 17 and IFRS 16) for the Company's financial year ending 27 June 2020 prior to this announcement were respectively £309.1m and £1.6m (IAS 17 basis) and £22.2m (IFRS 16 basis).

 

 

The information communicated in this announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) No. 596/2014.

 

Enquiries:

 

DX (Group) plc

T: 020 3178 6378 (c/o KTZ

Ronald Series, Chairman

 Communications)

Lloyd Dunn, Chief Executive Officer

David Mulligan, Chief Financial Officer

finnCap (Nominated Adviser and Joint Broker to DX)

T: 020 7220 0500

Matt Goode/Simon Hicks/Hannah Boros (Corporate Finance)

Andrew Burdis/Camille Gochez (ECM)

Liberum (Joint Broker to DX)

T: 020 3100 2000

Robert Morton/Euan Brown/Laura Hamilton

KTZ Communications

T: 020 3178 6378

Katie Tzouliadis

Dan Mahoney

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
TSTPPUBWAUPUGQM
Date   Source Headline
30th Jan 20247:00 amRNSCancellation - DX (Group) PLC
29th Jan 20242:16 pmRNSForm 8.3 - DX (Group) plc
29th Jan 202410:54 amRNSForm 8.5 (EPT/RI) - DX (Group) plc
29th Jan 202410:29 amRNSScheme Effective
29th Jan 20249:30 amRNSForm 8.5 (EPT/RI)
26th Jan 202412:06 pmRNSForm 8.3 - DX (Group) plc
26th Jan 202410:22 amRNSForm 8.5 (EPT/RI)
26th Jan 20247:00 amRNSRule 2.9 Announcement
25th Jan 20244:02 pmRNSForm 8.3 -DX GROUP PLC Amendment
25th Jan 20242:12 pmRNSForm 8.3 - DX (Group) plc
25th Jan 20241:03 pmRNSPDMR Dealings
25th Jan 202411:51 amRNSResults of Sanction Hearing
25th Jan 202410:14 amRNSForm 8.5 (EPT/RI) - DX (Group) plc
24th Jan 202411:23 amRNSForm 8.5 (EPT/RI)
23rd Jan 20241:27 pmRNSUpdate on financing arrangements
23rd Jan 202410:43 amRNSForm 8.5 (EPT/RI)
22nd Jan 20242:03 pmRNSForm 8.3 - DX GROUP PLC
22nd Jan 202412:36 pmGNWForm 8.3 - DX (Group) Plc
22nd Jan 202411:09 amRNSForm 8.5 (EPT/RI) - DX (Group) plc
22nd Jan 202411:02 amRNSForm 8.5 (EPT/RI)
19th Jan 20243:29 pmRNSForm 8.3 - DX Group Plc
19th Jan 20242:40 pmPRNForm 8.3 - DX (Group) Plc
19th Jan 202412:11 pmRNSForm 8.3 - DX GROUP PLC
19th Jan 202410:44 amRNSForm 8.5 (EPT/RI) - DX (Group) plc
19th Jan 202410:12 amRNSForm 8.3 - DX (Group) Plc
19th Jan 20249:34 amRNSForm 8.5 (EPT/RI)
18th Jan 202412:52 pmRNSForm 8.3 - DX (Group) plc
18th Jan 20249:22 amRNSForm 8.5 (EPT/RI)
17th Jan 20242:35 pmRNSForm 8.3 - DX (Group) plc
17th Jan 202411:15 amRNSForm 8.5 (EPT/RI)
17th Jan 202410:16 amRNSForm 8.5 (EPT/RI) - DX (Group) plc
16th Jan 20241:17 pmRNSForm 8.3 - DX (Group) plc
16th Jan 202411:47 amRNSForm 8.5 (EPT/RI)
15th Jan 202410:53 amRNSForm 8.5 (EPT/RI)
15th Jan 202410:00 amRNSForm 8.5 (EPT/RI) - DX (Group) Plc
12th Jan 20241:26 pmRNSForm 8.3 - DX (Group) plc
12th Jan 202411:28 amRNSForm 8.5 (EPT/RI)
12th Jan 202410:44 amRNSForm 8.5 (EPT/RI) - DX (Group) Plc
11th Jan 202412:01 pmRNSHolding(s) in Company
11th Jan 20249:32 amRNSForm 8.5 (EPT/RI)
10th Jan 20241:46 pmRNSForm 8.3 - DX (Group) plc
10th Jan 202412:46 pmPRNForm 8.3 - DX (Group) Plc
10th Jan 20249:37 amRNSForm 8.5 (EPT/RI)
9th Jan 202412:40 pmRNSResults of Court Meeting and General Meeting
9th Jan 202412:24 pmPRNForm 8.3 - DX (Group) Plc
9th Jan 20249:29 amRNSForm 8.5 (EPT/RI)
8th Jan 20242:08 pmRNSForm 8.3 - DX (Group) plc
8th Jan 20241:37 pmRNSForm 8.3 - DX (Group) plc
8th Jan 20241:18 pmRNSForm 8.3 - DX (Group) Plc
8th Jan 20249:39 amRNSForm 8.5 (EPT/RI)

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