Delivery services firm DX (Group) PLC (LON:DX.) said it remains on track to return to "positive" earnings for the year after making “encouraging” progress with its turnaround plan.
The group, which provides parcel freight, secure, courier and logistics services, said trading in the half-year ended December 31 was in line with expectations.
“As planned, turnaround initiatives in the period were more evenly focused across the two divisions, DX Freight and DX Express, in contrast to last year's greater concentration on DX Freight,” the company said.
Net new business across both divisions “remains positive” after investing in the sales teams, DX added.
The company launched a turnaround plan in 2017 after a series of issues including legal disputes, a police investigation, a shortage of qualified drivers and difficulties at one of its sites.
For the 2018 year, DX made an underlying (EBITDA) earnings loss for the year of £4.9mln, down from a £7.2mln profit last year, but it was better than market expectations thanks to the initial benefits of the restructuring plan.
Last week the group’s larger competitor Royal Mail Group PLC (LON:RMG) cut the upper range of its 2019 profit guidance and said next year it expects letter volumes to decline more than previously estimated and parcel deliveries to slow.