A turnaround plan at DX (Group) is beginning to bear fruit after its latest financial results showed a 7.7% increase in revenue to £322.5m.

The parcel delivery company reported a £1.7m pre-tax loss for the year ending 30 June 2019, but this was a substantial improvement on last year’s £19.9m loss.

It also reported an underlying operating profit of £0.2m - its first since 2017 - and marks an £11.1m improvement compared to 2018’s £10.9m loss.

It said the recovery followed the implementation of a turnaround plan announced in March 2018.

The group was restructured into two divisions, DX Freight and DX Express, with its freight operation showing particular improvements; revenue grew by 15% to £158.6m and EBITDA loss reduced by 45% to £7.8m.

DX Express reported a revenue increase of 1% to £164m and a positive EBITDA of £26.9m.

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The group also opened new sites in Maidstone and Northampton during the period and brought previous mothballed depots at Cannock and Pucklechurch, near Bristol, back into operation.

Ron Series, DX (Group) executive chairman, said: “This year has been one of significant change for DX, as our turnaround initiatives gained traction.

“We are pleased to report performance for the year slightly ahead of market expectations.

He added: “The company is now well on the road to recovery and we are now planning for significant capital investment over the next two years, which will help to underpin DX’s return to long-term, sustainable profitable growth.”