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DX Group finally appears to have turned a corner, posting its first full-year profit and an £11.1m swing in fortunes after two years of losses.

The embattled courier posted an operating profit of just over £200,000 for the year ending 30 June.

Chief executive Lloyd Dunn said: “We’ve made significant strides with our turnaround plan since announcing it in March 2018 and are building good momentum.

“While there’s still much to do, we have a firm foundation for the next stage of the turnaround.”

However, he added, more work is required to get the Freight division out of the doldrums, but there are signs of optimism.

Divisional losses were cut by 45% to £7.8m ($9.7m) on the back of a 15% upswing in revenue to £158.6m, helped by a greater move towards B2B, added the operator.

“There were a number of factors that contributed to the improvement. There was an increase in the proportion of B2B deliveries, which rose from around 50% to 73%. These types of deliveries are better suited to DX Freight’s fleet of predominantly 7.5 tonne vehicles./

“A second factor was an increase in hub and trucking productivity, and thirdly we invested in 160 new 7.5 tonne vehicles, which went into service in the last quarter of the financial year and are helping boost performance and productivity.”

Profit at the Express division fell from £29.3m to £26.9m, despite a slight increase in revenue to £163.9m, although DX said this had been expected.

Overall, investors appear pleased with the progress in turning around the group’s fortunes, with its largest shareholder, Gatemore Capital Management, notably vocal.

Managing partner Liad Meidar said: “These results are another sign that DX Group is on a positive trajectory. Management has maintained its current year forecast, a clear demonstration that the turnaround at DX continues to succeed.

“We are confident that there is further progress to come and look forward to working with the team to see DX continue to prosper.”

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