Parcel delivery group (DX Group) PLC (LON:DX.) has seen its senior management depart after a series of trading and strategic disappointments.
Petar Cvetkovic, chief executive, and Daljit Basi, finance director, are both leaving with company turnaround specialist James Hayward appointed as interim chief financial officer.
A reorganisation will also see the company become 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.
Chairman Bob Holt said it has been a challenging year for the company but it continues to be supported by its bank.
Over the past 12 months, DX has had planning permission for a new warehouse in the West Midlands refused, slipped into losses, seen off a boardroom revolt led by major shareholder Gatemore and faced a City of London police investigation that resulted in no action being taken.
In June, DX also agreed new terms for a £40mln merger with John Menzies’ distribution arm that received the blessing of rebel shareholder Gatemore though there is no date yet for the deal to be completed.
After today's statement, Menzies said: "John Menzies will continue to work with DX to establish the impact, if any, of DX's announcement on the proposed combination of DX and John Menzies' Distribution division."
For the financial year ended 30 June 2017, DX said revenues would be approximately £292mln (£288mln) and adjusted profit before tax (before exceptional items) in line with market forecasts, said the company. Net debt at the year end was £19.1mln.
In the current year, to March 2018, underlying earnings are likely to be broadly flat year-on-year, the company added.
Holt said: “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."
Shares in DX remain suspended.
-- adds comment from Menzies--