DX Group returned to profitability in its financial year-ending 30 June 2019, posting both EBITDA and operating profit gains as turnover grew.
Turnover for the year-ending 30 June 2019 increased 7.7 per cent year-on-year to £322.5 million; EBITDA rose from a loss of £4.9 million to a profit of £3.3 million and operating profit saw and £11.1 million rise from a loss of £10.9 million to a profit of £200,000.
The express courier, which spent the financial year in a turnaround plan to restore profitability, did post a pre-tax loss of £1.3 million, albeit a rise from a pre-tax loss of £19.9 million a year ago.
Chairman Ron Series said: “These encouraging results were helped in particular by a significant turnaround in the performance at DX Freight, and a better outcome at DX Exchange, where we have slowed attrition rates.
“The company is well on the road to recovery, and we are now planning for significant capital investment over the next two years, which will help to underpin DX’s return to long term, sustainable profitable growth.”
DX said a key element of its turnaround plan was investment, and during the financial year it had invested £3.5 million in IT systems, operational infrastructure and operating sites.
It added that over the next two years, it would be increasing this investment and had a further £10 million budgeted to refresh systems, extend the footprint of the business with new sites, and improve operational capability with sortation mechanisation.
The Passport Office decided not to renew its delivery contract with DX in May, which takes effect in January 2020. DX had held the contract for 14 years. It has subsequently been won by TNT UK.
DX said that despite this “disappointing outcome” it had made significant progress in other parts of the business and would not be changing its expectations for financial year 2020.