On Wednesday, DX Group PLC released its interim report, showing increased profit and revenue. A corporate governance inquiry delayed the report.
The parcel freight, courier, and logistics company based in Slough, England, reported a 6% increase in pretax profit. In the six months to January 1, the profit jumped to £3.3 million compared to £3.3 million during the same time last year.
However, there’s a 24% jump in profit on an adjusted basis, rising from £3.8 million to £4.7 million.
The revenue climbed from £182.7 million to £202 million by 11%. This, the business claimed, was despite “constraints on customer supply and cost pressures.”
DX freight segment’s progress (a 15% increase to £119.1 million) and the parcel service expansion were the primary drivers.
As a result of the company’s 3-year investment program of £20 to $25 million, capital expenditure jumped to £3.2 million. Equipment, IT, and the company’s physical locations all received investments.
In the financial year 2023, the company is expecting to renew paying a 1.5 pence per share as a dividend. It is also expected that DX Group will exercise its share buy-back option after the lifting of the suspension of its shares on AIM.
In January, DX Group shares were put on hold until the release of its 2021 annual report. An investigation into corporate governance caused the report’s postponement. The investigation concluded in September stating that there may have been a Bribery Act violation since “confidential competitor information” was received in exchange for money.
For the second half, which has already ended, the company mentioned strong trading and full-year results are expected to be ‘far ahead of previous management targets’.
Trading in the 2023 financial year has been ‘in line with management expectations till now.
Ron Series, Executive Chair, said, “DX has traded well and promoted operational improvements across the business while navigating the pandemic’s hurdles, including labour shortages and supply chain interruption. DX Express’ parcel sector has experienced tremendous growth as it broadens its emphasis. And DX Freight has continued to make excellent development. By opening four new depots in the first half alongside investing in existing locations, parcel handling equipment, and IT, we have boosted the scope and rate of our investment in the group.
Image credits: https://www.flickr.com/photos/34085730@N06/50077907712