DX (Group) PLC Trading Update (0574L)
14 July 2017 - 4:00PM
UK Regulatory
TIDMDX.
RNS Number : 0574L
DX (Group) PLC
14 July 2017
14 July 2017
AIM: DX.
This announcement contains inside information
DX (Group) plc
("DX" or "the Company" or "the Group")
Trading Update, Reorganisation & Board Changes
DX, the independent parcels, mail and logistics operator,
announces an update on trading, reorganisation of the business and
Board changes.
Results for the financial year ended 30 June 2017 are expected
to show revenues of approximately GBP292m and adjusted profit
before tax (before exceptional items) in line with market
forecasts. Net debt at the year end is expected to stand at
GBP19.1m. In an exceptionally challenging year, the Company was
pleased to successfully renew its contract with Her Majesty's
Passport Office as well as sign a number of notable contract wins,
including with Avon. Looking ahead, management has completed a
review of the Company's expected performance in the new financial
year and, taking into account the reorganisational changes referred
to below, it now considers that earnings before interest tax,
depreciation and amortisation will be broadly flat year-on-year.
The Company continues to enjoy the support of its bank.
As previously announced, the Company has been undertaking a
wide-ranging review of its operations in the period and, as part of
this review, the Company is announcing a reorganisation of the
business to create two Divisions: DX Express and DX Freight. DX
Express will comprise the DX Exchange, DX Secure, the Courier
operations and Mail activities while DX Freight will comprise
Logistics, DX 1-Man, and DX 2-Man. DX Express will be headed by
Nick Cullen, DX's existing Chief Operations Officer and DX Freight
by Stuart Godman, who is currently Chief Commercial Officer. Both
Divisional Managing Directors will report directly to the Board.
The reorganisation is expected to provide greater flexibility in
managing costs and puts the Company in a better position to advance
its operational and sales performance and to provide an enhanced
service to its customers.
As part of the reorganisation, Chief Executive Officer, Petar
Cvetkovic, and Finance Director, Daljit Basi, will be stepping down
from the Board and the Company. James Hayward, FCA, has been
appointed as interim Chief Financial Officer (a non-Board
appointment). James has spent over 20 years working as an
independent restructuring and transformation specialist and has
been directly involved with over 40 companies at the Board level,
both as an executive and advisor in the quoted and private sector.
These changes take immediate effect.
DX's results for the financial year to 30 June 2017 are expected
to be announced towards the end of September.
Bob Holt, Chairman of DX, said:
"The changes we are making both to the Board of Directors and to
the Group's operational structure are aimed at supporting business
transformation. In particular the reorganisation provides greater
flexibility in managing costs and puts the Company in a better
position to advance its operational and sales performance and to
provide an enhanced service to its customers.
"In a challenging year, we are pleased to have the support of
our bank and remain firmly committed to acting in the best
interests of all our shareholders."
Enquiries:
DX (Group) plc
Bob Holt, Chairman M: 07778 798816
T: 01753 631
624
Zeus Capital (Nominated Advisor T: 020 3829 5000
and Joint Broker)
Nick How, Giles Balleny, Dominic
King
Numis Securities (Joint Broker) T: 020 7260 1314
Stuart Skinner, Toby Adcock
KTZ Communications T: 020 3178 6378
Katie Tzouliadis, Emma Pearson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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