DX (Group) PLC Trading Update (8668S)
July 14 2020 - 2:00AM
UK Regulatory
TIDMDX.
RNS Number : 8668S
DX (Group) PLC
14 July 2020
14 July 2020
AIM: DX.
DX (Group) plc
("DX" or "the Group" or "the Company")
Trading Update
DX, a leading provider of delivery solutions, including parcel
freight, secure, courier and logistics services, is pleased to
provide an update on trading for the 52 weeks ended 27 June 2020.
As an essential service provider, DX continued to maintain
operations at all of its depots and service centres after the UK
Government's COVID-19 'lockdown' measures came into effect, with
the health and safety of all employees and customers remaining
paramount.
Since the Company's last update on 28 May 2020, trading in both
the Freight and Express divisions has continued to improve, and
Group revenue for June was only 3% below previous forecast levels
(set prior to the COVID-19 pandemic). This improved performance
across both divisions mainly reflects recovery in volumes from
existing customers but also some new business wins.
As a result, the Board expects that revenue and adjusted EBITDA
for the full year (both on an IAS17 and IFRS16 basis) will be in
line with current market forecasts(1) and that the Company will
report an adjusted pre-tax profit(2) on an IAS17 basis. This will
be DX's first full year adjusted pre-tax profit since the current
management team initiated its turnaround plan for the business in
spring 2018. The net cash position of GBP12.3m at the year-end
(2019: net debt of GBP1.3m), was better than market expectations,
although it has benefited from payment deferrals of GBP11.9m in
total, including VAT and other agreed payment holidays.
Volumes are continuing to rise, supported by strong levels of
customer service. Both divisions are experiencing a business mix
slightly more weighted to B2C than previously anticipated. The
Company's GBP10.0m capital investment programme, to be completed
over the course of FY20 and FY21, is progressing as planned.
Full year results are expected to be announced in late
September.
Ronald Series, Chairman of DX, commented:
"Having launched our turnaround plan two and a half years ago,
we are delighted to report the Company's expected return to
adjusted pre-tax profit. It demonstrates the hard work, expertise
and resilience of our people. We have a clear vision for ongoing
growth and remain wholly focused on the next stage of the Company's
development."
Notes
Note The Board believes that the consensus market estimate
1 for revenue for the financial year ending 27 June 2020
prior to this announcement was GBP326.7m and that the
estimate for adjusted EBITDA was GBP3.4m (IAS 17 basis)
and GBP24.0m (IFRS 16 basis)
Note Adjusted pre-tax profit excludes share-based payments
2 and amortisation of acquired intangibles. Prior to this
announcement the market estimates of adjusted pre-tax
profit were a loss of GBP0.9m (IFRS16 basis) and a profit
of GBP0.4m (IAS17 basis)
The information communicated in this announcement contains
inside information for the purposes of Article 7 of the Market
Abuse Regulation (EU) No. 596/2014.
Enquiries:
DX (Group) plc T: 020 3178 6378 (c/o
KTZ
Ronald Series, Chairman Communications)
Lloyd Dunn, Chief Executive Officer
David Mulligan, Chief Financial Officer
finnCap (Nominated Adviser and Joint Broker T: 020 7220 0500
to DX)
Matt Goode/Simon Hicks/Hannah Boros (Corporate
Finance)
Andrew Burdis/Camille Gochez (ECM)
Liberum (Joint Broker to DX) T: 020 3100 2000
Robert Morton/Euan Brown/William Hall
KTZ Communications T: 020 3178 6378
Katie Tzouliadis
Dan Mahoney
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END
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