13 May 2021 07:00
13 May 2021
AIM: DX.
DX (Group) plc
("DX" or "the Group")
Trading Update
DX, the provider of delivery solutions, including parcel freight, secure courier and logistics services, is pleased to announce an update on current trading for the 53 weeks ending 3 July 2021.
DX's trading performance since interim results were reported on 2 March 2021 has been stronger than expected. While trading at DX Express has been in line with management expectations, revenue growth at DX Freight is now expected to be around £10 million higher than previously anticipated. This has been driven by significantly increased volumes, both from existing customers and through new customer wins. As a result, the Board anticipates that DX will significantly exceed existing market expectations for adjusted profit before tax in the current financial year, with an associated improvement in operating cash flows.
Given the Group's strong financial position and continuing business momentum, the Board has decided to repay government furlough payments totalling £0.6m, received in support of the current financial year. With increased confidence in the Group's growth prospects and the outlook, the Board also proposes to accelerate its plans to expand DX's delivery network by targeting the opening of 12 new depots over the next two years.
The Board will provide a further update on trading and prospects in mid-July 2021.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the company's obligations under Article 17 of MAR.
Definitions:
DX Freight: comprises DX 1-Man, DX 2-Man and Logistics. The Division specialises in the delivery of irregular dimension and weight freight ("IDW").
DX Express: comprises DX Secure Courier, DX Exchange and Mail. The Division specialises in the express delivery of parcels and documents.
Enquiries:
DX (Group) plc | www.dxdelivery.com | |
Lloyd Dunn, Chief Executive Officer David Mulligan, Chief Financial Officer
| T: 020 3178 6378 (c/o KTZ Communications) | |
finnCap (Nominated Advisor and Joint Broker to DX) | T: 020 7220 0500 | |
Matt Goode/Simon Hicks (Corporate Finance) Andrew Burdis/Charlotte Sutcliffe (Corporate Broking)
| ||
Liberum (Joint Broker to DX) | T: 020 3100 2000 | |
Robert Morton/Euan Brown/William Hall | ||
KTZ Communications | T: 020 3178 6378 | |
Katie Tzouliadis/Dan Mahoney |
About DX (Group) plc:
DX is a well-established provider of a wide range of delivery services to both business and residential addresses across the UK and Ireland. First established in 1975 as a Document Exchange service to the legal sector, DX now provides one of the widest ranges of overnight delivery services in the market, as well as logistics services. Items that DX transports range from confidential documents and valuable packages to large, awkward-to-handle freight, unsuitable for standard conveyors.