DX Group sees earnings tumble

Earnings at DX Group have plunged as the mail, parcels and courier services company warned that the start of its new financial year had been “especially challenging”.

The AIM-quoted group has experienced a number of problems this year including legal issues, a police investigation, a shortage of qualified drivers and difficulties at one of its sites. Its chief executive and finance director left suddenly in June.

Earnings before interest, tax, depreciation, amortisation and exceptional items for the year to 30 June fell to £7.2m from £18m. DX reported an adjusted profit before tax of £0.

Revenues for the year were up slightly by 1.4% to £291.9m compared with £287.9m in 2016, but that was largely driven by its acquisition of Legal Post and First Post.

Once exceptional charges were factored in, including a £72.4m goodwill write down, DX reported a loss of £82.3m for the 12 months ended 30 June, compared to an £82.7m profit last year.