Dx (group) Share Discussion Threads

[dadsarebest] 30/1/2017 21:47

I think it is really important to stick to facts

Not expected to go before planning committee until March or April so no update before HY update.

No planning has been granted, the previous reference of 15/00722/FUL was the application that was refused.

[anthonyspencer1] 30/1/2017 21:31

With phase 2 dropped and replaced with a flower meadow for the local parish and existing planning permission already granted. Odds on this should pass.

[anthonyspencer1] 30/1/2017 21:13

if you cant download report
go here:

and search for application:
15/00722/FUL

[anthonyspencer1] 30/1/2017 21:02

Check out the new planning proposal:



DX still on course to ensure great future growth, share price is so cheap.

[mortimer7] 19/1/2017 11:39

Wonder if they will issue an update on the planning appn in Feb before the interims on 1st March?

[s34icknote] 06/1/2017 16:27

Or switching stocks ?

[anthonyspencer1] 06/1/2017 16:25

People swinging. I'm one. ?

[s34icknote] 05/1/2017 15:21

Lots of 50 k trades again

[kmann] 05/1/2017 11:52

Judging by the success of online shopping, DX should have had a bunper season imo. BUY 32p

[reallyrich] 31/12/2016 15:21

lol have a good new year

[diku] 31/12/2016 13:24

reallyrich...not me in post 1352!...

[aleman] 31/12/2016 12:20

One of the presentations on the website shows the shrinking Exchange revenues. I'm pretty sure analysts factored that into their forecasts of increased profit next year, along with the similar business acquired in Scotland this year to add to it and growth in other parts of the businesses. Or are you suggesting analysts did not factor in a weakening Exchange business?

[dadsarebest] 31/12/2016 11:29

In their year end results presentation they said dx exchange volumes reduced by £6.6m and this also flowed straight through to the bottom line and was the main driver of profit reduction. If this continues at the same rate this year it does not leave them a lot of profit left and where does it stop ? We dont know what the fixed cost of this is, say it is £40m then it has another say 3 years to fall to that level, but this would also tell you the rest of the business is loss making ! If the fixed cost base is say £55m and it reaches that point this year what do they do ? If they close it down the subscriptions will unwind creating a £20m hole in cash and they will also be faced i am assuming exit costs of getting out! Either way the dividend is too aggressive.

[aleman] 30/12/2016 14:37

Cash from operations was £14.7m. It covered £3.6m tax and £10m dividends but that includes leftovers from last year. This year's ongoing figures are £1.7m tax and £5m dividend so they take up less than half. The acquisitions should increase cashflows slightly next year so that's still about £10m of operating cashflows for other stuff. Are you suggesting that £10m will disappear for some reason? Margins were hit by driver sourcing issues but the final results indicated these had stabilised, which hints that margins might start to improve a little, presumably the main driver behind forecasts of slightly rising profits ahead.

[dadsarebest] 30/12/2016 12:51

Some good valid points aleman but it feels like DX does have cliff face arriving.

Key for me is the declining DX exchange (and it is declining the results since listing demonstrate that), what is the break even point on this business ? When it reaches this point what does it do, presumably close down this part of the business ? can't afford to operate it losing money and if the only way to reduce the cost base is to reduce coverage then it loses its attractiveness.

When this happens it is the key moment for DX as their balance sheet has circa £20m of deferred income (up front subscriptions), when this part stops trading this will catapult debt up to £30m, above their current facility levels !

Banks would not finance new hub so will they be impressed by the DX approach this year which was to use their banking facilities to fund their dividend payments ? I think not !

[anthonyspencer1] 29/12/2016 11:56

I like the parcel exchange plug in they are offering retailers

[aleman] 29/12/2016 09:26

All electronic documents are vulnerable to electromagnetic pulse (natural and man-made) and natural decay. This is why some organisations refuse to move from paper - the Office of the Public Guardian, for example - even if they have records scanned for ease of access. In my recent dealings with a solicitor, I was advised not to use email for sensitive information as it was not secure. I do not see DX's legal/secure business disappearing overnight.

Dividends need to be covered by cashflow - not earnings. Occasional non-cash write-downs that hit earnings rarely affect the ability to pay a dividend if cashflow is satisfactory, as seems the case here. The rise in debt was to make acquisitions that have increased cashflows and will have likely increased dividend and interest cover. Lots of businesses have balance sheets with high intangibles or even negative assets. It is only a problem for certain industries. Most software companies have no significant assets rcorded on balance sheets. Many retailers never build up any balance sheet strength since they rent shop units and don;t pay for stock until after it is sold. Some companies do not need to tie up lots of underworked capital on their balance sheets.

[wskill] 29/12/2016 09:11

How do you email a package I would ask and writing down intangibles is not a cash cost present dividend is forecast to be covered.

[opodio] 29/12/2016 08:58

Copied from previous post. Worth a read.

Dividend sure to be CANCELLED.

Dividend was uncovered by Earnings last year,
]
AND

It has debt of £10m now up from £2m debt a year ago
]
AND

Just look at the intangibles of £113m on total balance sheet of £133m, thats all hot air. Puffery. They need to write it down cos the assets are generating less free cash.

The big risk is that DX’s most profitable business, DX Exchange, appears to be in decline. DX Exchange provides a secure mail service for lawyers and businesses. Demand is being rapidly eroded by email.Dividend is all that is holding the share price aloft, with out that this is 6p

[jon123] 29/12/2016 08:57

yes and there are European online shoppers buying in the uk most of the delivery companys have said there all doing more oversea's trade due to the weak pound

[reallyrich] 29/12/2016 08:49

With online shopping their is more parcel post than ever before. That is why many of the high street reatailers are suffering.

[jon123] 29/12/2016 08:35

erm true but these days the deeds are not important as they used to be now the land registry is gospel and its records are electronically held

[this_is_me] 29/12/2016 08:21

You can't send the deeds of a house by e-mail.

[anthonyspencer1] 28/12/2016 10:03

Share price 35-40p within a year