DX Group PLC (LON:DX.) shares rose in early trading Tuesday after the firm managed to cut its pre-tax losses by more than half in the six months to 31 December.
The parcel freight and logistics group reported that pre-tax losses had been reduced by 62% to £5.3mln in the period, while revenues had risen 7% to £157mln, in line with expectations.
READ: DX to return to 'positive' full year earnings on turnaround efforts
Looking to the second half, DX said trading had “improved over the same period last year” and that it remained on track to be earnings (EBITDA) positive in the full year.
For the first half period, EBITDA losses fell 43% to £2.5mln.
The company has been in the middle of a turnaround strategy since 2017 following a series of issues including legal disputes, a police investigation, a shortage of qualified drivers and difficulties at one of its sites.
Ronald Series, chairman of DX, said the group’s initiatives were “now beginning to bear fruit” and that the company “remains well positioned for further performance improvement”.
In a note to clients, the company’s broker finnCap said the results were “evidence the turnaround has started well” and that there were prospects for “significant share price upside”.
“The new strategy is allowing DX to start moving towards earning an appropriate return on services that customers both need and value”, said finnCap’s analysts while also reiterating their 18p target price on the stock.
Shares were up 2.4% at 10.5p.