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DX Group PLC on Wednesday reported increased profit and revenue in an interim report delayed by a corporate governance inquiry.
The Slough, England-based parcel freight, courier and logistics provider increased its pretax profit by 6% to £3.3 million in the six months to January 1, from £3.3 million in the same period last year.
On an adjusted basis, profit increased by 24% to £4.7 million from £3.8 million.
Revenue increased by 11% to £202.0 million to £182.7 million. This, the company noted, was despite ‘customer supply constraints and cost pressures’.
The uplift was driven by progress at the DX freight division, which reported a 15% increase in revenue to £119.1 million, as well as the growth of the parcels service.
Capital expenditure increased to £3.2 million as part of the company's three-year £20 to 25 million investment programme. Investments were made into equipment, IT and the company's physical sites.
The company is hoping to resume paying a dividend in the 2023 financial year, amounting to 1.5 pence per share. It is also expecting to use its share buy-back option once the suspension of its shares on AIM is lifted.
Shares in DX Group were suspended in January pending the publication of its 2021 annual report. The report was delayed by a corporate governance inquiry. In September, the inquiry said there may have been a breach of the Bribery Act after ‘confidential competitor information’ was obtained in exchange for payment.
The company said on Wednesday it ‘remains focused on seeking the lifting of the suspension to trading of the company's shares on AIM, as well as improving internal processes to meet its corporate governance objectives.’
Shares in DX Group last traded at 30.00 pence.
Regarding the second half of the year, which has already finished, the company said trading was strong and that results for the full year are expected to be ‘significantly ahead of previous management target.’
So far in the 2023 financial year, trading has been ‘in line with management expectations’.
Executive Chair Ron Series 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. DX Freight continued to make excellent progress, and Parcels growth at DX Express has been strong as the division broadens its focus. We have increased the scale and rate of our investment in the group, opening four new depots in the first half, and investing in existing sites, IT and parcel handling equipment.’
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