DX, in its interim results for the six months to 31 December 2016, saw EBITA drop from £5.6 million in 2015, to £3.9 million. Revenue increased from £141.6 million in 2015 to £142.7 million.
Petar Cvetkovic, chief executive officer, said: “Results have been impacted by the trading pressures reported in February and we have since initiated a wide-ranging review of the Company’s operations to improve financial performance and drive revenues. We have also significantly strengthened our senior management team and have been working with a business transformation specialist since mid-January.
“We are pleased with progress with recent initiatives and are encouraged by recent new business wins, including our major contract with Avon UK. Our pipeline of new business is also currently standing at its strongest level in recent years.
“The Board remains highly focused on implementing measures to turnaround business performance and in addition is currently in discussions regarding the potential combination of DX and the Distribution division of John Menzies. We believe that the combination of the businesses has strong strategic logic for all stakeholders and represents an opportunity to deliver significant value to both companies’ shareholders. We will provide a further update in due course.”