DX reports 95% surge in profits as growth plan continues

DX said it had produced its strongest half-year trading results in seven years, with a 15% increase in revenues to £231.3m.

The group said adjusted pre-tax profits also rose, by 95% to £9.2m during the six months ending 31 December 2022, up from £4.7m in the same period in 2021.

Group operating margin improved to 5% from 3.6% last year and DX said it was making good progress towards a group target of 7.5% - 10%.

The board has now declared an interim dividend of 0.5p per share, marking another significant milestone in the transformation of the group since its turnaround started in 2018 and signalling confidence in ongoing growth prospects.

The board is aiming to deliver a final dividend payment of 1p per share, taking the total dividend for the financial year to 1.5p per share.

Both divisions, DX Freight and DX Express, contributed to the increase in revenue and profit, securing healthy levels of net new business and managing cost pressures effectively.

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The strong first half performance was helped by high levels of customer service and an easing of the supply chain issues and labour market pressures that had been experienced in the same period in the previous financial year.

DX added that while economic headwinds were expected, the board remained confident that the group was on track to meet its expectations for the financial year.

Paul Ibbetson, DX (Group) chief executive (pictured), said: “The group performed strongly, with both divisions contributing higher revenue and expanded margins. Trading was helped by the easing of customer supply chain and labour market pressures.

“We are also pleased to return to the dividend list after six years. It reflects the success of our turnaround and growth plans, which commenced in 2018, as well as our confidence in the Group’s future prospects.”

Earlier this month, Tuffnells Parcels Express filed a claim against DX in the High Court in relation to alleged corporate espionage.

The claim alleged that three DX Group employees conspired to obtain daily customer service reports from Tuffnells in October 2020.

The group has said it intended to defend its position “robustly”.