REG - DX (Group) PLC - Trading update

DX (Group)Announcement

02/02/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220202:nRSB3832Aa&default-theme=true

RNS Number : 3832A  DX (Group) PLC  02 February 2022

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 provide an update on trading for
the 26 weeks ending 1 January 2022, the first half of its current financial
year.

 

Trading over the period was in line with the Board's expectations, despite the
tight labour market and customers' supply chain disruptions. Group revenue was
approximately 11% ahead of the first half of the previous financial year, and
the trading momentum has continued into the third quarter of the financial
year.

 

DX Freight continued to improve its volumes and margins against the same
period last year. Volumes at DX Express were consistent with the first half of
last year, with the product mix showing a slight shift back towards its
historic B2B weighting rather than B2C, following the easing of coronavirus
restrictions. Net new business at both divisions continued to be robust and
the pipeline of new business opportunities remains extremely healthy.

 

Network expansion plans progressed well in the period. Following the opening
of four new depots and the expansion of a further depot in the first half, two
new depots were opened in early January 2022, at Bodmin and Coventry, in line
with plans. They will support productivity improvement at DX Freight. An
additional five depots are scheduled to become operational in the second half
of the financial year, supporting both DX Freight and DX Express activities,
and reflecting DX's growth opportunities and the pipeline of new business.

 

The Group's financial position remains strong. Net cash at the period end
totalled £14.5m (2 January 2021: £14.1m) and the £20m invoice discounting
facility was undrawn, giving the Group significant levels of headroom.

The corporate governance inquiry announced on 25 November 2021 is proceeding,
and the Company will provide a further update in due course.

 

Enquiries:

  DX (Group) plc

 www.dxdelivery.com
 Lloyd Dunn, Chief Executive Officer                         T: 020 3178 6378

 David Mulligan, Chief Financial Officer                     (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/Nick How/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 automated conveyor.

 

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 Parcels and DX Exchange and Mail.  The Division
specialises in the express delivery of parcels and documents.

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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTUPUQWPUPPGMG