DX Services, the British business mail and parcels group, has forecast a decline in profits thisyear due to the slowing UK market. The company, which has just appointed a new chief executive,
said profits for the full financial year ending on 30 June 2006 could be five per cent belowprevious expectations.Chairman John Maxwell told the company’s November 11 annual meeting that B2B document volumesremained below historic levels but the carrier was winning new business. “The significant newparcels revenue expected from customer wins has been achieved, although this has been offset by anoverall reduction in volumes due to general market conditions. The group is benefiting from priceincreases introduced last year and new mail volumes from mailroom management companies,” he said.The new DX Mail service for business and residential customers launched to compete with Royal Mailwas an important development, he added.
In the year ending June 30, 2005, DX Services had flat turnover of £131.1 million but pre-taxprofits after exceptional items and amortisation dropped from £32.7 million to £20.1 million,
while net profits declined to £12.6 million. Mail distributed through its Document Exchangesystem generated stable revenues of £84.1 million while parcel revenue dropped fractionally to £42million.
