DX shares jump as annual profit and revenue rise; Chair Series retires

(Alliance News) - DX Group PLC on Tuesday reported soaring profit and revenue in the financial year that ended July 2, saying the figures represent a seven-year high for the firm. And it also announced an executive change.

Shares were up 9.0% at 27.24 pence each on Tuesday morning in London.

The Slough, England-based parcel freight, secure courier and logistics provider said pretax profit jumped 64% to GBP17.4 million from GBP10.6 million the year before, while revenue climbed to GBP428.2 million from GBP382.1 million.

DX cited a strong performance at DX Freight and an improvement in DX Express for the revenue growth.

Earnings before interest, tax, depreciation and amortisation increased by 30% to GBP50.3 million from GBP38.6 million the year before.

Outgoing Chair Ron Series said: "Both revenue and adjusted pre-tax profit reached seven-year highs. The significant progress the group has made reflects a well-executed growth strategy, underpinned by the major investment we have made in the business over recent years."

It announced its intention to restart dividend payments in the current financial year.

Looking ahead, DX said trading in the first quarter of financial 2023 remained in line with expectations.

Separately, DX announced the retirement of Chair Ron Series after five years, prompting 20% shareholder Gatemore Capital Management LLP to withdraw its requisition for an extraordinary general meeting. Gatemore in October requested the meeting, asking chair Series to step down, as it cited the firm's shares being suspended from trading for over nine months, from January 4 to October 18, as one of the reasons for the requisition. It also said it believed about GBP1.3 million of expenses were "excessive".

DX hired Mark Hammond as its new chair, effective immediately. He will remain in an executive position until a chief executive officer is appointed to the board, at which point it will revert to being a non-executive role.

Hammond is currently senior independent director of the Leeds, England-based plastic pipes manufacturer Genuit Group PLC. He has over 25 years of commercial and financial experience across finance, investment and commerce.

By Xindi Wei; [e-mail]

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