DX beat analyst forecasts to deliver strong annual trading results, with a statutory pre-tax profit of £10.6m on a £382.1m turnover.

The group has also announced a £20m-£25m capital investment programme in the business over the next three years.

For the year ending 3 July 2021, the parcel firm’s freight division primarily drove the increase, which marked the group’s first statutory annual profit since chief executive Lloyd Dunn and chairman Ron Series joined the business and enacted a turnaround plan.

Freight increased revenue by 32% to £223m and achieved an operating profit of £22.9m, compared to the previous year’s loss of £0.6m.

DX said increased volumes, efficiencies and focus on customer service helped drive the division’s growth.

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It said the Express division, which specialises in the express delivery of parcels and documents, was significantly impacted by coronavirus restrictions and lockdowns.

Six new sites were opened during the period, including in Oxford, Burnley, Rotherham and Glasgow.

It added that trading in the first three months of the new financial year had gone well and it had implemented self-help measures to address pressures created by the HGV driver shortage and global supply chain disruption.

Dunn said: “Results are significantly ahead of our original expectations, and we have achieved a key milestone of full-year statutory pre-tax profits, in line with our turnaround plans set in 2018.

“DX Freight fuelled this excellent performance while DX Express was significantly impacted by coronavirus restrictions, which affected our legal and high-street activities in particular, although the division’s parcels operations grew significantly.

“Despite the ongoing challenges, including driver shortages and global supply chain disruptions, we remain confident of further progress over the new financial year.”