Dx (group) Share Discussion Threads

[marktime1231] 26/10/2022 19:40

Well well well

I can imagine Gatemore will get support to replace Ron Series, currying votes with not so subtle hints at plans to reinstate the disgraced CEO and plans to realise value for other institutional holders by advertising for a buyer. How do you sell DX though, or who to, it is two very different businesses.

A little surprised though, I thought Gatemore's original beef was the same as mine ... a sequence of years of the board messaging that the turnaround was succeeding, stoking hopes for the dividend to be reinstated, only to be told once profitability was restored that all the cash was being reinvested. Now the carrot of reinstating dividends is not enough, and Gatemore wants its asset value.

More surprised that the high volume of shares changing hands has not resulted in holdings notifications.

Fully understand why people will want to speculate.

[nigelpm] 26/10/2022 18:54

Board very clearly on notice now if they weren't already.

[ps65] 26/10/2022 16:10

Also:

Cash and cash equivalents 2021 - 16.8m 2020 - 12.3m

Plus I believe it has increased since 2021 (pretty sure mentioned in RNS)

[wallywoo] 26/10/2022 16:09

No mate, just don't like paid posters. You have no incentive to be here other than to discourage pi's to make a few quid here / sell out.


You ignore my posts that all accounts are 11 months old, and ignore the very provable fact this business is generating over £10m of cash every 6 months.


Have lots and lots of experience with paid poster's over decade's. You always say the same things, but following your advice always leads to losing money. Your mere presence here tells me there's lot's more money to be made (not that I needed that confirmed).

[ps65] 26/10/2022 16:06

"Profit for period £3m same as period last year
EPS same as period last year"
Errr... are you looking at the right accounts?
Profit/(loss) for the year 2021 - 15.4m 2020 - (1.8m)
Earnings/(loss) per share (pence):
Basic 2021 - 2.7p 2020 - (0.3p)
Diluted 2021 - 2.3p 2020 - (0.3p)

Page 60 on their accounts. Also RNS's say significantly ahead of expectations for 2022

Very peculiar (and incorrect) post from Fenner

[fenners66] 26/10/2022 16:01

So you want to shoot the messenger not disagree with the message....good luck with your investing..

[fenners66] 26/10/2022 15:59

wallywoo

"Well over £10m every 6 months (despite investing £7m+ in the business each year)"

Maybe you should take a closer look ...

"Net (decrease)/increase in cash and cash equivalents (2.3) 1.8 4.5 "

Because despite cash from operations (allowing for the fact they paid back covid loans)
Lease repayments (9.8) (8.3) (17.7)
- Interest paid (2.4) (2.1) (4.6)
- Tax paid - net (0.3) (0.2) (0.6)

Add dividends to that , and
"to support the growth of the existing depot network in line with previously announced plans. Current requirements are forecast at GBP8-10 million per annum for the next three years; "


Lets see some delivery of growth and balance sheet discipline...

[wallywoo] 26/10/2022 15:56

Accounts always my first point of call. In this case they are 11 months out of date.We will know more in 1 month with year to 2/7/22 is posted, and more again a few months after that. By that time share price will of raced ahead.This business has a huge amount of reporting to catch up on. Hope you get paid by the post, since no one will listen to you very soon.

[forrest1987] 26/10/2022 15:53

There seems to be a fair few people exiting here

[fenners66] 26/10/2022 15:50

Deramp?

Take a look at the accounts - those figures are straight off them - if you think that is a deramp - you clearly do not look at them.
Fine make money based on gut instinct - it works
I just said I think there will be a short term jump in the share price and you got it - well done.

I prefer to look at long term fundamentals that works for me ...

[wallywoo] 26/10/2022 15:43

Lol Fenners, you did not see why anyone should buy this yesterday at 21.3p. Well I did and I saw why. Happy I did too.


Will see you in a few days when the share price is higher still!!!


Apart from take over potential, it was this business ability to generate cash that attracted me. Well over £10m every 6 months (despite investing £7m+ in the business each year). Why you trying to deramp this? Smells of a paid poster to me!!!

[forrest1987] 26/10/2022 15:31

I thought those points too Fenners - where is the growth

Maybe why its hit a wall at 24.5p

[fenners66] 26/10/2022 15:30

Well since the share price has turned , I thought perhaps I ought to take a closer look at the last accounts.

Profit for period £3m same as period last year
EPS same as period last year

Gross margin 2.8% -unchanged

Turnover up 10.6% yr on yr

Current assets excl cash (Trade debtors?) up 16.3% so much more than turnover

Provisions (for bad debt?) up £0.8M or 40%

The "adjusted figures" includes £0.8M of exceptionals - that I get , but the other items
look permanent "Share based payments"

Finance cost is up and there is a forecast of more capex and dividends to come.

So despite the headline of growth the rest of the results don't live up.

Inflation ? Energy costs and pay rises to come ?
Slow down in retail so less freight deliveries ?

I think there may well be a short term jump in the share price - was that it so far?
But looking deeper at the fundamentals I don't see the sparkling case for growth .

[forrest1987] 26/10/2022 15:29

Way too many selling to get involved yet

will wait for more upwards movement

[wallywoo] 26/10/2022 15:00

To be fair there was a seller about at 21p this morning. I am not worried about them. It only distracts from the real value of the company. 30p coming, what happens then depends on what the directors decide to do.

[forrest1987] 26/10/2022 14:58

Few dumping here, looks like a classic pump maybe

[forrest1987] 26/10/2022 14:31

Seller about at this level

Need to clear him

[nigelpm] 26/10/2022 13:58

50p is more realistic and possible.

[stemis] 26/10/2022 13:57

£500m is 87p. I think we'd all take that...lol

[stemis] 26/10/2022 13:55

I've always believed the end game for DX. would be a takeover and certainly Gatemore and, no doubt, Dunn now would be a seller for the right price. That's 30% in the bag for starters with 4 other institutions (Lombard Odier, Schroder, Ruffer and AXA) holding another 21%, so it's not hard to deliver. Not sure now is a great time though...

[ls24] 26/10/2022 13:52

Mark Hammond - the former Tuffnells Bank Man pre connect

[wallywoo] 26/10/2022 13:36

I really don't expect DX to be independent for much longer. The logistics sector is rife with acquisition activity, despite the general market downturn.


The only question remains, how much will others be prepared to pay!! I had a look through Clipper logistics accounts last night. Quite similar to DX in many ways. They had a bumper year 2021, and had a few European depots but really not much bigger than DX. £945m was the buyout price. I would take £500m here!!!

[stemis] 26/10/2022 13:24

Not really a surprise that Series is under pressure. There was an article over 3 weeks ago in the IC on the very subject.

[qs99] 26/10/2022 13:15

Should be North of 40p on yield alone etc etc etc...DYOR