Dx (group) Share Discussion Threads

[croasdalelfc] 28/9/2022 17:19

That dividend is chunky - £8.5m in a year plus buybacks . Perhaps a total of £10m a year into a recession. That is a confident board or a foolhardy one.

[knowing] 28/9/2022 16:01

Good results, shame it's not currently trading.

All divisions showing growth
Expansion
Dividend

Should be back with a bang.

[stemis] 28/9/2022 15:44

True...lol

[nigelpm] 28/9/2022 14:37

Quite Stemis - I remember some quite vocal debates on twitter over this - you and I were closely aligned (we often aren't!) on this particular one.

[stemis] 28/9/2022 11:37

If I had to guess, I'd agree with Pogyted that they want to get the AGM and the approval of the 2021 accounts out of the way before re-listing. If I was them I'd be waiting for any initial drop in the share price on relisting to go into the market and mop up any cheap shares from impatient sellers.

It's always easy in these circumstances to let one's imagination run away with one; it's a fraud, the company is going bust, the CEO has been on the take, they have set it all up for a cheap MBO, it'll never re-list. So far everything the company has said has turned out to be true (even if they've often taken an age to say anything).

Turnover in H1 was £202m, which was up 11% on H1 2021. According to their trading statement, turnover for the year is £425m which would make H2 turnover £223m, which is 12% up on H2 2021. Looks like growth continued in H2 pretty much consistently...

[everton448] 28/9/2022 08:22

I absolutely do not discount that as a possibility! But assuming that outrageously, cynical manoeuvre is shunned, what do you make of today's announcement and results and how would you value the business? Genuine question, as your historical, healthy, cynicism has been vindicated in the past...

[my retirement fund] 28/9/2022 08:02

This won't relist as a guess, there will simply be a low ball offer to take it private. It can then come back again in the few years time as a fresh IPO and make its major shareholders gazillions again. A rinse and repeat exercise no ? I assume you chaps remember the last IPO?

[qs99] 28/9/2022 07:53

Final results to be published in November, but surely they won't have to wait until then to re-list? Market is updated on trading and legacy issues, so what is holding back the re-list now these interims are out? DYOR

[amaretto1] 28/9/2022 07:28

Good results....Imo keep suspended in this mkt ..Relist when Mkts stabilised

[qs99] 28/9/2022 07:22

So EV likely to be now IMO around £150-160m, with EBITDA of c.£40m, net cash and dividend yield...great outlook statement so how hammered will it be? AND if it is, will it leave it vulnerable to a bid? DYOR

[paulisi] 28/9/2022 07:09

Results are good, outlook is good.
Just need to re-list and regain the confidence in the market created by the suspension

[qs99] 28/9/2022 07:07

Cracking update IMO....may not get a chance to buy these too cheaply haha! Roll on the re-listing and chance to get some cheaper shares if there is a sharp drop...let's see...DYOR

[podgyted] 24/9/2022 09:38

"An AIM company must prepare a half-yearly report in respect of the six month period from the end of the financial period for which financial information has been disclosed in its admission document and at least every subsequent six months thereafter (apart from the final period of six months preceding its accounting reference date for its annual audited accounts). All such reports must be notified without delay and in any event not later than three months after the end of the relevant period."

So, actually 3 months.

There seems to be no reason why they couldn't have issued the interims at the same time as the Annual accounts - hence my speculation about the GM.

[podgyted] 24/9/2022 09:26

This didn't suggest to me it would be anytime soon:-

"Reflecting the Board's commitment to seek the lifting of the suspension of trading in the Company's shares on AIM as quickly as possible, the Board will also take such further steps as may be required to improve its internal processes and to meet its corporate governance objectives. In the meantime, trading in the Company's shares will remain suspended, with further updates to be made in due course."

They haven't as far as I can see issued interim accounts to Dec 21 - I haven't checked, but presumably there's a 6 month rule on those as well. There is a GM on 20th Oct where resolution one is "THAT the audited Annual Report and Accounts for the financial year ended 3 July 2021, together with the
Directors’ Report, Directors’ Remuneration Report and Auditor’s Report thereon, be received." Perhaps they want this out of the way before issuing interim accounts and relisting ?

Could be right could be wrong.

[qs99] 23/9/2022 12:23

Still unclear as to why this cannot relist?

Views?

[stemis] 20/9/2022 22:12

There's no evidence that the review of the Group's compliance policies and procedures is 'at the behest of a regulator, in order to inform them how to resolve and punish'.

[marktime1231] 20/9/2022 21:22

Bribery/fraud, obstructing statutory auditor enquiries and non-execs from doing their duty, false accounting (unless of course there was a journal entry called 'bribe'), and a shameful exec chair still trying to sweep it under the carpet. Pretty sick they are trying to minimise things. A chorus of punters saying is that all!

It would be normal for an external enquiry by a big 4, while paid for by DX, to have been instructed at the behest of a regulator, in order to inform them how to resolve and punish. There should be a fine, remedial actions and other heads will roll because of the failures in board governance and leadership culture - as Boris just found out a crime is a crime, however trivial, and culpable especially if you set the rules. A ban from doing government business perhaps, if what Rees-Mogg just did to Bain sets the tone. Or crossed off bidders lists anyway, thanks to a tainted reputation. Ron Series has to go, he has made no apology and can't be trusted, and depends what did the CFO know. Dunn Snr possibly in line to be barred. The outlook for DX and shareholder value have been damaged.

Unlikely then that the conclusion of an internal inquiry into why its own internal investigation was "curtailed and restricted" is any sort of conclusion as the rns spins it, more like the end of the beginning.

As rumoured in another chat room earlier or was it a lucky guess, attempting bribery trying to steal competitor information presumably to help win business ... I wonder what, the Passport Office contract or more recently where they seem to have been succesfully growing the top line.

Everyone happy that this was an isolated junior action and the matter is closed?

Fat chance.

[lombriz] 20/9/2022 14:59

As for legal claims, it doesn't look like they'll be material - “management217;s judgement of settlement costs for ongoing legal matters” would be only a part of the “other provisions” of £0.8m in the 20/21 accounts.

Also, if, as they admit, information was indeed obtained from competitors over a period of time, then that also casts doubt over the corporate governance of those competitors, who themselves are not whiter than white no doubt, and who may want to keep their heads below the parapet, for fear of suffering the same fate as DX (i.e. share suspension etc).

[stemis] 20/9/2022 10:06

Just had a quick check of the Report & Accounts issued today. Appears to be exactly the same as the final results issued 8 November 2021 apart from a £4.3m offsetting adjustment between 'Trade and other receivables' and 'Trade and other payables'.


Seems a pretty positive outlook statement (sorry for the formatting):-

DX made strong progress over the
financial year, and the parcels market
for both DX Express and DX Freight
continues to grow. We remain focused
on increasing our market share whilst
increasing the Group’s adjusted
operating profit margin significantly over
the next three years. As we utilise existing
capacity across our networks, scale
capacity through new depot openings,
and invest in parcel handling equipment,
we expect to drive efficiency and
productivity improvement through the
business, which will underpin margin
expansion. Margin growth will also be
assisted by operational leverage. We have
a very healthy pipeline of new business
opportunities, which helps to support
our confidence that DX remains in a very
good position to achieve its growth
objectives for the current financial year.

Reflecting this confidence, we have
launched our second major capital
expenditure programme, which will invest
around £20 to £25 million in the business
over the next three years.

In late 2021 new challenges emerged
and the macro-economic environment
became more volatile. As well as
shortages of HGV drivers and other
logistics industry workers, the disruption
to global supply chains led to a number of
customers experiencing stock shortages.
We implemented a number of self-help
measures to address pressures, and there
were some early signs that issues are
beginning to resolve themselves. Despite
these additional challenges, DX continues
to win new business and to increase
market share, and we believe that the
Company remains well-positioned to
exploit market opportunities and to
make progress in line with our targets.

[nigelpm] 20/9/2022 09:28

Yes - expect a relist RNS imminently.

[markie7] 20/9/2022 09:17

fundamentals look ok /robust here. was undervalued in the first place. very good chance that it drops on re-listing, and that ought to be a huge opportunity if you get the timing right.

[qs99] 20/9/2022 09:13

SteMiS, completely agree. Other than the competitor maybe suing surely this is done and dusted, we now look to the future with net cash and EBITDA growth and possible divi no? DYOR

[stemis] 20/9/2022 09:07

So not 'clearly a fraud on the company then'. Indeed neither it appears anything to do with the conduct of the now resigned CEO, who maybe thought this was all a bit overkill. Don't see why the company can't re-list immediately.

[my retirement fund] 20/9/2022 08:27

Yes that will be the next thing, a raft of claims and legal fees

[spooky] 20/9/2022 07:53

That may have concluded their investigation but what are the chances that they will become involved in legal cases involving outside parties, in relation to the bribery?