DX, the mail, parcels and logistics network operator, is to float on AIM, the London Stock Exchange market for smaller companies, through an initial public offering (IPO).
DX was established in 1975, and delivered some 170 million items in 2013. Petar Cvetkovic, Chief Executive Officer of DX said: “We are delighted to announce our plans for a listing on the AIM market. DX is a customer focused and profitable business developing strong specialised positions for deliveries into discrete markets with a strong capability in the fast growing parcel delivery market.
“The DX team has worked hard to develop the business over the last four years, and it is this ability and ambition that will allow us to deliver on our clear strategy for growth. The IPO is the next evolutionary step in our development and we are very excited about the significant opportunities ahead.”
The company operates next day delivery services for mail, parcels and 2-man deliveries to business and residential addresses nationwide, for both public and private sector companies. It currently employs over 3,200 staff and 2,100 couriers and owner/drivers, operates over 350 nightly trunk routes and has a Collection and Delivery fleet of over 2,500 vehicles of which 2,100 are contractor vehicles.
In March 2012, DX acquired Nightfreight,which specialised irregular dimension and weight freight in the B2B and B2C markets with more than million deliveries a year.
In the year ended 30 June 2013, DX produced a turnover of £306 million and EBITDA of £34.4 million. It is currently trading on a 11.3 per cent EBITDA margin.
It expects the integration of DX’s offerings and DX Freight acquisition to drive significant cost savings.