DX Group jubilant as turnaround plan delivers narrowed loss

In the 12 months ended 30 June, loss before tax shrank 76% to £19.9m compared to the previous year, as impairment charges dropped to £5.3m from £74.4m.

This was helped by revenue coming in at £299.5m, exceeding expectations with a 3% increase after strong growth by DX Logistics, part of the freight division.

Cash and cash equivalents were unchanged at £2m at 30 June, while debt stood at £1.1m, down from £19.1m.

Ron Series, chairman of DX, said: "This year has been one of significant change for DX. The company is now on the road to recovery, as our turnaround initiatives start to gain traction. The group's performance is slightly ahead of market expectations."

The AIM traded company’s turnaround plan, which was put into action after its freight business began to struggle, leading the company to reorganise itself into two divisions: DX Freight and DX Express.

DX’s ambition is to achieve sustainable and profitable growth within three years of implementing the plan, which has also devolved accountability and authority to general and regional managers.

"We are encouraged by prospects for continuing progress over the new financial year, and retain our confidence in meeting both the short and long term goals we have set ourselves," said Series.

DX’s shares were up 5.92% at 10.07p at 1251 BST.