DX Group H1 trading in line with expectations despite headwinds

Delivery firm DX Group said on Wednesday that trading in the six months ended 1 January was in line with internal expectations, despite a tight labour market and supply chain disruptions.

DX said group revenue was approximately 11% ahead of the first half of 2020 and that trading momentum seen during the period had continued into the third quarter of the financial year.

The AIM-listed firm said its DX Freight business continued to improve volumes and margins against the same period last year, while volumes at DX Express were consistent with the first half of 2020, with its product mix showing a slight shift back towards its historic B2B weighting rather than B2C following the easing of Covid-19 restrictions.

Net new business in both divisions continued to be "robust" and the firm's pipeline of new business opportunities remained "extremely healthy".

Network expansion plans also progressed well in the period following the opening of four new depots and the expansion of a further depot.

DX added that its financial position remained "strong", with net cash at the period end totalling £14.5m.

As of 0955 GMT, DX shares were up 3.45% at 30.0p.