DX Group has announced a major new contract with Avon UK a week after plummeting share prices prompted its largest shareholder to call for the removal of two board members.

The three-year deal is already underway and is worth in excess of £10m a year.

DX chief executive Petar Cvetkovic said the win highlighted the capability of the ‘OneDX’ business development programme, which was heavily criticised by shareholder Gatemore Capital Management last week.

Cvetkovich said: "The bespoke logistics solution we have designed for Avon reflects our customer-centric approach and highlights the 'OneDX' capability.

“Our services are now underway and should provide for more efficient and flexible deliveries and ultimately an improved customer experience."

But Gatemore managing partner Liad Meidar told Motortransport.co.uk that OneDX, the “brainchild” of board chairman and non-executive director Bob Holt and Paul Murray, had failed.

He said: “They devised the programme - and it’s failed.

“The problem is, every solution they’ve put out there has been more of the same. There’s been no admission of the fact they tried and it’s not working. They’ve just said “well we’re just going to do it faster and more aggressively”. And they’ve destroyed value faster and more aggressively.”

Gatemore Capital Management called for the removal of the board members last week after the share price value of the company fell 90% in the last two years.

Topics