The CEO and financial director of DX Group have stepped down with immediate effect after what the business described as an "exceptionally difficult year".

Petar Cvetkovic and Daljit Basi are leaving the board and the company, with restructuring specialist James Hayward stepping in as chief financial officer. 

While the financial results for the year ended 30 June aren't expected to be announced until September, the group has predicted turnover of £292m (2016: £288m) and profit before tax to be "in line with expectations".

DX announced the departures in a trading update today, in which it also laid out plans to restructure the group into two divisions.

DX Express will encompass DX Exchange, DX Secure, courier and mail activities; DX Freight will comprise Logistics, and one- and two-man freight deliveries.

Chairman Bob Holt said: "The changes we are making both to the Board of Directors and to the Group's operational structure are aimed at supporting business transformation.

"In a challenging year, we are pleased to have the support of our bank and remain firmly committed to acting in the best interests of all our shareholders."

Business transformation advisor Ian Gray, who has been working with DX since January, joined the DX board as a non-executive director on 1 July.

It's been a troubling few months for DX Group, which have seen a police investigation into its Exchange operation, dropped last week, and its largest shareholder, Gatemore Capital Management calling for the removal of chairman Bob Holt and non-executive director Paul Murray and protesting the proposed merger with John Menzies' distribution arm.

Gatemore managing partner Liad Meidar welcomed the news that profit was expected to be in line with predictions, and added that the company's working relationship with the board had improved.

He said: "Since February we have been publicly calling for the Board to re-focus on the freight business and end the failed OneDX integration programme. This announcement makes clear that the Board is taking meaningful steps in that direction.

"Our working relationship with the Board has become more productive, and we will continue to be supportive of their efforts to unlock the potential of DX Group’s freight business.”

Menzies responded to today's trading update, stating: "John Menzies will continue to work with DX to establish the impact, if any, of DX's announcement on the proposed combination of DX and John Menzies' Distribution division."

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