DX (Group) (AIM:DX) tough in delivery world but great performance in the circumstances
The parcels, mail and logistics operator delivered results in line with forecasts with a small improvement in operating margin. The dividend yield is clearly the main attraction at the moment but will it be maintained as they incur big investment in a new delivery hub?
Revenues from ongoing activities of £297.5m were marginally down on the prior year’s £304.2m although it’s the bottom line that we are interested in. Adjusted profit before tax was £26.7m (2014: £27.7m) and statutory profit before tax £24.8m vs a loss of £55.7m which included the finance adjustments associated with the end of private equity ownership. Adjusted eps was 10.9p and statutory EPS of 9.9p which equates to a lowly earnings multiple of only 7.38x and 8.13x respectively implying that many doubt whether they can keep delivering those kind of numbers. Operating margins appear quite decent but, its very hard…