DX moves towards profitability
DX Group expects to move back into profit when it reveals its results for the year to 30th June. In a pre-close trading statement, it said result were in line with expectations with EBITDA of £3.2m compared to an EBITDA loss of £4.9m last year.
Revenue is expected to increase eight per cent to £322.5m.
It said DX Freight benefitted from significant improvements in operational efficiency and customer service. “It continues to secure healthy levels of new business, which is improving the utilisation of the existing capacity in its network.”
DX Express “has further slowed the rate of attrition of the annuity revenue at the Document Exchange. Its Courier offering is growing, which will help offset the impact of the non-renewal of the HMPO contract due to expire in January 2020.”
The Group said it is well-positioned to make further progress in the new financial year and remains on track to achieve market forecasts of EBITDA of £7.7m, as reported on 28 May 2019.
Liad Meidar, managing partner at Gatemore Capital Management, DX Group’s major shareholder, said: “Today’s trading update is a further sign that DX Group is heading in the right direction. We are pleased to see that the turnaround plan for the core business remains well on-track and are confident that management will continue to capitalise on this success and build DX into a freight and logistics powerhouse.”