DX Group saw turnover slip during the first half of its financial year as it continued with its strategy of ending commercially unattractive contracts that were inherited with its acquisition of the former Nightfreight business.
Its half-year results covering the period to 31 December 2014 revealed a drop in turnover to £147.4m (2013: £150m) as a result of culling contracts that do not have a profitable contribution as they come up for renewal.
It is also continuing to consolidate its depot network following the acquisition of Nightfreight (now rebranded DX Freight) in 2012, under its ‘OneDX’ programme. It has so far reduced the number of sites by 15 to 72, and plans the closure of a further 13 sites.
It continued to make improvements to its fleet and introduced specially designed 5-tonne vehicles, which the firm said are currently exclusive to DX.
Pre-tax profit for the period was £10.7m. In 2013 it posted a £10.9m pre-tax profit, adjusted to exclude the contributions from discontinued activities including Business Direct, which was sold to ByBox Group in December 2013.
Chief executive Petar Cvetkovic said: "In a challenging trading environment, I am pleased to report that DX has delivered a satisfactory financial performance in the first half of the financial year, in line with management expectations.
“Our goal for the year is further steady and controlled progress with our major initiatives as we work towards the creation of our 'OneDX' proposition. We also remain focused on those areas of the market which require our more specialist services, including our time-sensitive, mission critical/high value and two-man delivery services. Customer service as ever remains a priority,” he added.
DX said it is taking a "cautious view" of the market following the administration of City Link in December. It said it is working hard to offer former City Link customers its services, but warned the wider effect of the loss of the parcel carrier, particularly in terms of capacity, are "not easy to predict with clarity".
In January it acquired certain City Link assets from its administrator for £1.1m, which it said was "in line with our planned spending on equipment".
