DX X (G (Group) plc lc In Interims Result lts for the six months ended 31 December 2018 5 March 2019 New Team, New Plan, New DX.
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Executive Team • Appointed Executive Chairman in October 2017 Rona onald Seri Series, s, Cha hairman • Highly experienced in business turnaround situations • Chairman of Tuffnells Parcel Express (2002-05) during its successful turnaround • Appointed as CEO in October 2017 • Over 38 years’ experience in express freight and parcels industry • Led successful turnaround of Tuffnells Parcel Express prior to its sale Lloyd Du Llo Dunn, CEO • Co-founded Nightfreight Plc, a logistics company that was floated on the Official List in 1994 and later acquired by private equity. In 2012, Nightfreight was acquired by DX • Appointed CFO in April 2018 • 20 years’ experience in senior financial roles • David Mull Da ulligan, CFO Previously CFO at Hornby plc, involved in its restructuring and turnaround • Before that, CFO of Morgan Sindall Group plc for nine years until 2013, having joined in 1997 3
Summary ry • Turnaround initiatives showing encouraging results H1 performance in line with management expectations - • Structural reorganisation has helped to drive improved performance devolution of accountability to general and regional managers - • Investment in sales teams in both Divisions has delivered strong new business wins commercially realistic price policies implemented - • Customer service levels and operational efficiency has improved • DX Exchange attrition was slowed - in line with management expectations • A three-year investment programme to upgrade IT, property and operational systems has commenced 4
New Divisional Structure DX EXPRESS DX FREIGHT DX 1-Man DX Exchange • A next-day delivery service specialising in • A private members B2B mail and parcel irregular dimensions and weight items delivery network of over 3,500 exchanges (“IDW”), mainly to business customers. DX 1 - across UK and Ireland, operating primarily in Man also provides services for the regular the legal, financial and public sectors parcels market DX Secure DX 2-Man • A leading, highly secure B2C courier service. • A home delivery service for large items Customers include HMPO, Central Government weighing up to 150kg, mainly to residential and major banks addresses DX Courier DX Logistics • A next day, fully-tracked B2B delivery service, • A comprehensive logistics solution, including primarily to branch networks, high streets, warehouse management and operation of industrial areas and government premises customer-liveried vehicles and uniformed personnel DX Mail • A low cost, second class mail alternative 5
H1 Financial Summary ry • Revenue up 7% to £157.0m (2017: £146.6m) DX Freight – up 16% to £78.0m - Revenue - £157.0m DX Express – flat at £79.0m DX Express - DX Freight • EBITDA loss down 43% to £2.5m (2017: £4.4m) DX Freight – loss of £5.5m (2017: loss of £8.1m) - DX Express – profit of £11.6m (2017: £14.2m) Exchange - 15% Central overheads – £8.6m (2017: £10.5m) 1-Man - 30% Secure • Adjusted LBT 1 down 46% to £4.6m (2017: £8.5m loss) 15% Courier • 2-Man Net debt reduced to £3.5m (2017: £25.6m) – better than expected Logistics 19% 5% 15% • Cash outflow from operating activities reduced to £1.4m (2017: £9.9m) Mail 1% 1 Adjusted for amortisation of acquired intangibles (£0.1m), exceptional items (£nil) and share based- payments charge(£0.6m) (2017: £0.1, £5.5m and £nil respectively) 6
H1 In Income Statement Six months to Six months to Year ended 31 December 2018 31 December 2017 30 June 2018 £m Revenue 157.0 146.6 299.5 EBITDA (2.5) (4.4) (4.9) Depreciation (1.3) (1.4) (2.9) Amortisation (0.7) (2.2) (3.4) Share-based payments charge (0.6) - (0.2) Exceptional items - (5.1) (5.7) Results from operating activities (5.1) (13.1) (17.1) Finance costs (0.2) (0.6) (0.9) Exceptional finance costs - (0.4) (1.9) Loss before tax (5.3) (14.1) (19.9) Tax (0.3) (0.2) 0.4 Loss for the period (5.6) (14.3) (19.5) 7
H1 Segmental Analysis £m Six months to 31 December 2018 Six months to 31 December 2017 DX DX DX DX Express Freight Central Total Express Freight Central Total Revenue 79.0 78.0 - 157.0 79.2 67.4 - 146.6 Costs before (63.6) (81.2) - (144.8) (60.9) (74.0) - (134.9) overheads Profit/(loss) 15.4 (3.2) - 12.2 18.3 (6.6) - 11.7 Overheads (3.8) (2.3) (8.6) (14.7) (4.1) (1.5) (10.5) (16.1) EBITDA 11.6 (5.5) (8.6) (2.5) 14.2 (8.1) (10.5) (4.4) 8
Balance Sheet £m 31 December 2018 31 December 2017 30 June 2018 Non-current assets Property, plant and equipment 8.4 9.9 8.9 Intangible assets and goodwill 31.1 32.7 31.7 Deferred tax assets 2.6 1.4 2.6 Total non-current assets 42.1 44.0 43.2 Current assets Trade and other receivables 36.1 34.4 41.9 Current tax receivable - 1.7 1.1 Cash and cash equivalents 4.2 2.5 2.0 Total current assets 40.3 38.6 45.0 Total assets 82.4 82.6 88.2 Equity Share capital and share premium 30.9 2.0 30.9 Capital redemption reserve - 0.4 - Retained earnings (11.0) (0.3) (6.0) Total equity 19.9 2.1 24.9 Non-current liabilities Loans and borrowings - 23.5 - Provisions 3.5 5.5 3.6 Total non-current liabilities 3.5 29.0 3.6 Current liabilities Current tax liabilities - - 0.1 Loans and borrowings 7.6 4.4 3.0 Trade, other payables and provisions 35.5 30.3 37.8 Deferred income 15.9 16.8 18.8 Total current liabilities 59.0 51.5 59.7 Total liabilities 62.5 80.5 63.3 Total equity and liabilities 82.4 82.6 88.2 9
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