The new Board at DX, a leading provider of delivery solutions, including parcel freight, secure, courier and logistics services, has unveiled its turnaround plans for the business alongside the Company’s six-month results ending 31 December 2017.
The Group is proposing to redeem its Convertible Loan Notes and to raise £4m to support its growth initiatives. These plans have the backing of the Company’s major shareholder.
The new leadership team, led by industry veterans Ron Series as Chairman and Lloyd Dunn as CEO, were appointed to the Board in October and have since embarked on a wide-ranging restructure of the Company’s operations. Key to their turnaround strategy is placing depots and service centres at the heart of DX, giving greater operational responsibilities and authority to general and regional managers. The new capital raised will be invested in the business, including expanding the sales teams, adding new depots, enhancing the Group’s IT capabilities, and developing the networks.
Lloyd Dunn, CEO at DX, comments:
“Following a careful review of the business it is clear that there is a great foundation to build upon with market leading products, a strong service culture supported by a loyal and invested team. We’ve been especially impressed by the quality of the people working within the business who want to deliver an excellent service and are committed to the future of the company.
“Key to the early success of our plan has been devolving accountability to depot general managers and regional directors, who are being given greater operational responsibilities and authority. This is driving the business supported by the creation of a commercial function, improving the quality of the contracts we win and manage. We have excellent products that are market leading in certain sectors, which, through our new structure, are improving and reaching the service level previously enjoyed by our customers.
“It’s clear that our new structure and strategy is already making progress. This, combined with the support of our major shareholders, means we can provide the necessary investment in sales capability, operations and IT. DX is a sleeping giant – if we keep our focus and momentum, DX will once again be a force to be reckoned with.”
Financial Key Points
• Revenue of £146.6m (2016: £142.7m)
• EBITDA1 loss of £4.4m (2016: EBITDA profit of £3.9m)
• Loss before tax and exceptional items of £9.0m (2016: loss of £0.5m)
• Exceptional (non-recurring) items of £5.1m (2016: £28.8m) – include non-cash impairment charges of £5.3m (2016: £27.4m)
• Reported loss before tax of £14.1m (2016: £29.3m)
• Loss per share excluding exceptional items of 4.6p (2016: 0.0p); reported loss per share of 7.2p (2016: loss of 14.4p)
• Net debt excluding Convertible Loan Notes was £2.1m at 31 Dec 2017 (2016: £18.4m); net debt including Convertible Loan Notes of £25.6m at 31 Dec 2017 (2016: £18.4m)
• £24.0m fundraising completed in the period (via issue of Convertible Loan Notes)
1 Earnings before interest, taxation, depreciation, amortisation and exceptional items