DX to beat forecasts after surge in freight business
8.35am: Parcels firm delivers the goods
DX Group PLC (LON:DX.) has delivered an upbeat trading statement and seen its shares roar ahead.
The parcels and courier group said its overall performance since the time of the half year results at the start of March had been better than expected.
Trading at parcels division DX Express had been in line with forecasts, but revenue growth at its freight business is now expected to around £10mln higher than previously anticipated.
DX Freight has seen much higher volumes from both existing and new customers.
So the company now reckons it will “significantly” beat City forecasts for full year profits.
Given its strong performance and financial position it has decided to repay £0.6mln of government furlough payments.
It also plans to expand its network by opening 12 new depots over the next two years. announcing the addition of 300 new vehicles to take its fleet to more than 900 strong.
Last month it announced the addition of 300 new vehicles to take its fleet to more than 900 strong.
The company’s shares have accelerated 10.51% or 2.25p to 36.5p on the news.
Also heading higher is Nanoco Group PLC (LON:NANO).
Shares in the technology firm are up 7.08% or 1.98p at 29.98p after it announced an agreement for a development project with an ” important European electronics customer.”
The project began in May 2020 and this extension means the company now expects full year revenues to increase by around 40%.
Chief executive Brian Tenner said: “This is an important next step in our work with electronics materials. Successful delivery of the next stages of the project will further demonstrate the interest of the electronics industry in Nanoco’s technology in the medium term.
“Growth in mega-trends in a number of sectors utilising infra-red sensors accelerated very significantly across the globe in the second half of 2020. Nanoco’s technology adds significant capability and enhanced functionality for devices in those sectors.”
On Wednesday the group issued a postive update on its litigation against Samsung.