StockMarketWire.com - DX chief executive Petar Cvetkovic and finance director Daljit Basi have stepped down as part of a reorganisation of the business to create two divisions: DX Express and DX Freight

The independent parcels, mail and logistics operator, said it expected revenues for the year ended 30 June to be around £292m and adjusted profit before tax, before exceptional items, to be in line with market forecasts and that net debt at the year end was expected to stand at £19.1m.

It said: "In an exceptionally challenging year, the company was pleased to successfully renew its contract with Her Majesty's Passport Office as well as sign a number of notable contract wins, including with Avon."

The group said DX Express would comprise the DX Exchange, DX Secure, the Courier operations and Mail activities while DX Freight will comprise Logistics, DX 1-Man, and DX 2-Man.

It said DX Express would be headed by Nick Cullen, DX's existing chief operations officer and DX Freight by Stuart Godman, who was currently chief commercial officer.

It said both divisional MDs would report directly to the board.

The group said the reorganisation was expected to provide greater flexibility in managing costs and put the company in a better position to advance its operational and sales performance and to provide an enhanced service to its customers.

It said that as part of the reorganisation Cvetkovic and Basi had stepped down from the board and the company and James Hayward had been appointed as interim chief financial officer (a non-board appointment).

The group said he had spent over 20 years working as an independent restructuring and transformation specialist and had been directly involved with over 40 companies at the board level, both as an executive and adviser in the quoted and private sector.

It said these changes were with immediate effect.

It said: "Looking ahead, management has completed a review of the company's expected performance in the new financial year and, taking into account the reorganisational changes, it now considers that earnings before interest tax, depreciation and amortisation will be broadly flat year-on-year."

Separately, John Menzies Plc said it would continue to work with DX to establish the impact, if any, of DX's announcement on the proposed combination of DX and John Menzies' Distribution division.

"John Menzies will make a further announcement as and when appropriate."

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