DX, the delivery and logistics group, has released its half year results, revealing a 7% increase in revenue to £157 million and losses cut by 62% to £5.3 million.
Led by CEO Lloyd Dunn, who previously led the successful turnaround of Tuffnells Parcel Express, much of DX’s turnaround strategy has focussed on group restructuring and devolving accountability to local teams, as well as improving sales, service levels and operational efficiencies.
Commenting on the results, Lloyd Dunn said: “I am very pleased with the progress we have made over the last six months, and the turnaround continues to proceed as planned. DX has come through a difficult period, but is now in a fantastic position to push forwards. We are confident in our strategy, and expect to see the Company’s results continue to improve.”
DX’s Chairman Ronald Series added: “DX’s turnaround continues to progress encouragingly, and the Group’s results are in line with management expectations. Our turnaround initiatives are now beginning to bear fruit and the Group remains well positioned for further performance improvement.”
The improvement reflects a radical overhaul of the business, which began in October 2017 with the appointment of a new Board. The Group has been restructured, with a focus on devolving responsibility and accountability to regional teams. Alongside this, DX has improved operational efficiencies, driven up service levels and strengthened its sales teams. These initiatives have succeeded in improving revenue and productivity, as well as securing a healthy pipeline of new business opportunities.
In a signal of confidence for future growth opportunities, the Group is expanding its fleet with new 7.5T vehicles, due for delivery this year. Two previously closed depots in Staffordshire and South Gloucestershire have also been re-opened, and a brand new depot in Kent is due to open before the year end. These investments will provide an opportunity for further service and productivity improvements, as well as facilitating new business.
Liad Meidar, Chief Investment Officer, Gatemore Capital Management stated: “We are pleased by today’s results, which are a further sign that DX Group is heading in the right direction. We remain confident in management’s ability to implement its plan to deliver long term growth, and look forward to continuing to work with the team.”