DX Group bosses out as police drop probe

The boss and finance director of parcels firm DX Group quit today, a week after the police dropped a probe into the company.

The company, which is merging with the newspaper and magazine distribution business of larger rival Menzies, has had an “extremely challenging year” and is also splitting into two divisions, it said.

The departure of chief executive Petar Cvetkovic had been flagged up. But finance director Daljit Basi had been expected to stay on as a director of the combined business and the firm would not say why he is now stepping down.

Shares were battered in February by a profit warning because of tougher trading conditions forcing the company to axe its dividend. The City of London Police added to its woes last month by launching an initial probe into its DX Exchange division, but stopped short of a full investigation.

DX is paying Menzies £40 million in cash for the business and issuing new shares which would give Menzies investors a 60% stake in the combined company.

Chairman Bob Holt said: “In a challenging year, we are pleased to have the support of our bank and remain firmly committed to acting in the best interests of all our shareholders.”