DX (Group) PLC reported solid financial progress in its much delayed interim results and said results for the second half would be “significantly ahead” of previously announced expectations.
Publication of the results had been delayed due to a recently concluded investigation into a corporate governance issue at the parcels and courier group.
Trading in the company's shares will remain suspended on AIM but DX said today it remains focused on seeking the lifting of this suspension as well as improving internal processes to meet its corporate governance objectives.
Revenues in the 26 weeks to January 1st, 2022, were up 11% to £202.0mln, despite customer supply chain constraints and cost pressures, driven by ongoing excellent progress at DX Freight and growth in the Parcels service business in the DX Express division.
Adjusted profit before tax rose 24% to £4.7mlm while net cash increased to £14.5mln from £14.1mln previously reflecting improved profitability - this figure also includes the repayment of £5.1mln of coronavirus deferred payments and increased capital expenditure.
DX said it would resume a “progressive” dividend policy from 2023 with a pay-out expected of 1.5p per share for the year and said it would return surplus capital to shareholders in the form of special dividends or share buy-backs.
The group also set a target for dividend cover of between two to three times adjusted earnings per share.
DX announced plans to use the share buy-back authority, once the share suspension has been lifted, to undertake market purchases to minimise dilution resulting from the exercise of options pursuant to the Company's Performance Share Plan 2017.
Trading in the second half has been strong with full year 2022 results expected to be significantly ahead of previous management targets, while trading in full year 2023 to date is in line with management expectations, DX said.
Ron Series, executive chairman, commented: "The board believes that the group remains well-positioned for continued progress in the current financial year ending 1 July 2023, despite economic headwinds.”