DX Group: Under offer logistics firm’s profits jump as EV investment drive continues
Under offer logistics firm DX Group reported a jump in full-year profits as it continued to expand its network of depots across the UK and invest heavily in its electric vehicle (EV) fleet.
The group, which offers services including logistics and parcel freight, saw pre-tax profits rise by a third to £26.8m, while revenues increased by 10 per cent to £471.2m.
Statutory profits saw similar growth, rising by nearly half to £25.4m and rewarding investors with an earnings per share increase of 63 per cent to 3.9p.
Paul Ibbetson, chief executive officer of DX Group, hailed “another strong performance, above our expectations.”
“We have invested across all areas of operations – including the depot network, parcel handling equipment, electric vehicle fleet and IT – and this will continue in the new financial year.”
However, he cautioned of macroeconomic troubles including rising interest rates and inflation. “We are mindful of the current economic headwinds, however, given the strong platform that we have established and the encouraging levels of new business that we have secured in the opening months of the new financial year, we look forward to another year of further progress.”
Earlier this month, DX Group was courted by a £293m bid from the US-based private equity giant HIG European Capital partners, that would see the firm become the latest to be swiped off London markets.
Shares rocketted following the announcement, reaching upwards of 45p – although that was still signifcantly below the proposed offer price.
Founded in 1975, DX owns a number of a depots across the UK and has invested nearly £11m in expanding its network and bolstering its electric vehicle (EV) fleet.
It recently acquired 15 UK sites and 250 employees from Tuffnells, the bealeagured parcel firm that went into administration in June.
Shares rose 1.86 per cent this morning and are currently flying high in the year to date, up nearly 80 per cent.