DX revenue and profits rise amid 'strong' FY performance

DX said revenues had risen 12% to £428.2m, while underlying earnings increased 30% to £50.3m. Pre-tax profits were up 68% on an adjusted basis at £20.2m and 64% on a statutory basis at £17.4m.

Basic earnings per share, on the other hand, dropped 11% to 2.4p, reflecting the previous year's recognition of deferred tax on unused tax losses.

On a divisional basis, revenues were up 15% at DX Freight and 8% at DX Express at £256.9m and £171.3m, respectively.

Overheads decreased as a percentage of revenue to 5.1% from 5.3%, excluding exceptional items. Including £1.6m of exceptional items, overheads increased to £23.5m.

Looking ahead, DX said first-quarter trading was in line with internal expectations, with its three-year £20.0m-25.0m investment programme set to "drive revenue and margin expansion". DX also said it was "well positioned" to achieve its growth objectives despite current economic headwinds.

Separately, DX said chairman Ron Series had retired from the group, with immediate effect, and will be replaced by Mark Hammond, who will take on the role of executive chairman until such time as a new chief executive officer can be found.

As of 1050 GMT, DX shares had shot up 11.20% to 27.80p.

Reporting by Iain Gilbert at Sharecast.com