By Nicholas Earl
DX Group has confirmed the resumption of its dividend policy next year, following a hefty boost in revenues and earnings from its first six months of trading this year.
Its dividend will amount to 1.5p per ordinary share for the year, paid approximately on a one-third two-thirds basis.
The courier and logistic company has reported an 11 per cent bump in revenues to £202m, despite customer supply chain constraints and cost pressures.
The uplift has been driven by ongoing progress at DX Freight division and the growth of the parcels service at the DX Express division.
Adjusted profit from operating activities across the company is up 24 per cent to £7.3m, compared to £5.9m this time last year.
Its profit margin has also increased from 3.2 to 3.6 per cent.
At its freight division, revenue climbed 15 per cent to £119.1m with profit from operating activities up 28 per cent to £10.4m.
At the DX Express division, revenues climbed five per cent to £82.9m, although profit from operating activities was down 18 per cent to £6.1m.
Parcels activity grew 10 per cent to £63.9m while revenue at Document Exchange and Mail, continued to trend downwards as expected, decreasing by 11 per cent to £19.0m
Capital expenditure has also risen, climbing to £3.2m on sites, equipment and IT, which is part of a three-year £20-£25m investment programme.
It has opened new depots in Dewsbury, Grimsby, Luton and Verwood alongside expanding its site in Maidstone,
DX Group now expects its full-year results to expected to be significantly ahead of previous management targets, with the company enjoying a strong second half-year of trading.
Ron Series, Executive Chairman of DX (Group) plc, said: “DX has traded well and driven operational improvements across the business while navigating the challenges caused by the pandemic, including supply chain disruption and labour shortages.
“As already reported, with second half trading better than expected, helped by easing supply chain issues, full year results are expected to significantly exceed management targets. This will result in another year of improved underlying performance and profitability.”
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