DX Group’s turnaround plan, which was backed by investors to the tune of £4.76m in May, remains on course with the embattled operator set to trim losses in its current financial year.

In a trading update released today (18 July), the operator’s newly installed management led by CEO Lloyd Dunn, said the plan to get the business back on its feet was “progressing steadily”.

“The directors expect the group to meet market expectations for the full year (to 30 June), which includes an underlying loss for the year,” the statement said.

DX Group expects net debt to be better than previously anticipated at £1.1m for the year (2017: £19.1m).

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DX Freight, which includes the group’s irregular dimensions and weights business, remains the immediate focus for the turnaround and “continues to gather momentum”.

It generated a loss of £18.3m in the previous financial year, and its margins have been declining since 2015, although in recent months revenue has been driven higher thanks in part to the expansion of the operator’s IKEA contract.

Plans are underway to separate DX Exchange from its secure and courier operations.

DX Group made a pre-tax loss before exceptional items of £9m in the year to 30 June 2017 (2016: £500,000 loss). However, an exceptional impairment charge of £74.4m actually left the operator nursing a loss of more than £80m in the period.