Dx (group) Share Discussion Threads

[forrest1987] 27/10/2022 15:33

That will ensure the share price will carry on rising

it took 4 hours for it to stop rising lol

[forrest1987] 27/10/2022 15:25

odd drop at the end

[wallywoo] 27/10/2022 11:34

He will be negotiating his retirement settlement as we speak. He is 72 after all.


Volume is nice and high again. With all the Director gaps leaves DX very vulnerable to a takeover. I suspect that is many large holders end game here. Get them sold off ASAP while the dollar is so strong.

At any rate this has well and truly woken up from 11 months sleep. Market has taken notice of them. That will ensure the share price will carry on rising, imo. Very little chart resistance until we hit 30p!

[stemis] 27/10/2022 10:35

Going to be hard for the board to find 36% of shareholders out of the remaining 64% to actively support Series as Chairman. I'd expect him to step down without an EGM.

[someuwin] 27/10/2022 08:54

From The Times (can't read the whole article)

The biggest shareholder in DX Group has begun moves to unseat the parcel delivery company’s executive chairman, who it has accused of “severely harming” the company.

Gatemore Capital, which owns 20 per cent of DX, said yesterday that it had formally called on the company to convene an extraordinary meeting to remove Ron Series and replace him with their nominee.

Liad Meidar, Gatemore’s managing partner and a former non-executive director at DX, said that he had privately urged Series, 71, to step down and had the support of other shareholders, including Schroders, with 5.7 per cent, and Lloyd Dunn, 62, the company’s former chief executive, who has 10.9 per cent. “I regret we did not take this move earlier,” Meidar, 47, said...

[markie7] 27/10/2022 08:44

Results coming late November. Definitely one not to be short of. A real chance to confirm properly the good trading news and put all the nonsense behind us. Also, if the chairman goes - that probably suits shareholders as well as he has presided over a total fiasco over the last year. A clear clear buy at these levels

[ps65] 27/10/2022 08:29

Fenner – “ Interim Results For the 26 weeks ended 1 January 2022. They are of course the latest and greatest accounts to refer to.”

Have to disagree with you there, granted latest accounts can be useful, but they do not tell the full picture and are unaudited. Profit of £3m for those 6 months and £15m for the year tells you that you can not judge DX solely on 6 month accounts.

I also think you have cherry picked at figures, I can do likewise:

Adjusted profit from operating activities1 up 24% to £7.3m (H1 2021: £5.9m)

Adjusted operating profit margin1 increased to 3.6% (H1 2021: margin of 3.2%)

Adjusted profit before tax1 up 24% to £4.7m (H1 2021: £3.8m)

Adjusted earnings per share1 up 17% to 0.76p (H1 2021: 0.65p)

Net cash1 increased to £14.5m at 1 January 2022 (H1 2021: £14.1m), reflecting improved profitability and is after the repayment of £5.1m of coronavirus deferred payments and increased capital expenditure

Like Wallywoo says, we will know more in a month’s time when the latest (full year) accounts are out, which we have been told are ahead of expectations.

[stemis] 27/10/2022 07:55

Not sure which accounts people are looking at if they don't see recovery/growth here

2020 - Turnover £329.3m PBT £0.2m Net cash £12.3m
2021 - Turnover £382.1m PBT £12.0m Net cash £16.8m
2022 - Turnover £425m PBT £20.0m Net cash £27.0m

I understand that the 2022 numbers are a combination of pre close announcements (turnover and cash) and broker estimates (profit) but the company has a duty to correct the market if the broker forecasts aren't going to be met. It's now nearly 4 months after the year end and they haven't.

Cash is clearly lagging profit because the company is heavily investing in supporting growth. Profit is forecast to rise further to £29.5m in two years. As a pretty crude comparison, during 2020 and 2021 cashflow lagged profit by around £17.3m (£32m in profit less £14.7m increase in cash). I'd suggest that the extra £19.8m in PBT is worth considerably more than £17.3m in cash.

[qs99] 27/10/2022 07:41

well I'm sure that most PIs will want rid of the current Chairman who has presided over such a MASSIVE debacle within the company, spent huge professional fees & we've all had to waste a year waiting for the results.

if Gatemore hadn't turned up, heaven knows where we would have been.

So IMO, chuck Series out as hopeless/useless and get the new bod in and get cracking on further delivery!!

DYOR and all IMO
Cheers
QS99

[wallywoo] 27/10/2022 05:43

Article from UK investor mag, stating that DX are a screaming buy and get in quick before they rerate. HTTPS://ukinvestormagazine.co.uk/dx-group-return-from-suspension-offers-a-very-cheap-buying-in-opportunity/For some strange reason Fenners thinks the complete opposite, when the share price was 21.3p on Tuesday, and at 24p yesterday. Seems a unlikely investor attitude after a 14% daily rise!!!

[fenners66] 26/10/2022 20:07

PS65 the figures I quoted were the figures in the last accounts published, 28 September 2022, Interim Results For the 26 weeks ended 1 January 2022

They are of course the latest and greatest accounts to refer to.

The comparisons are half year vs half year.
The numbers above are from indeed the cash usage numbers are cut and paste from those accounts

[nigelpm] 26/10/2022 18:46

Expecting a flurry of holding RNS to come. Think there's usually a time lag. Gartmore are no different to any other vulture. Want their asset value realised asap.

[marktime1231] 26/10/2022 18:40

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 17:54

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

[ps65] 26/10/2022 15:10

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 15:09

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 15:06

"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 15:01

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

[fenners66] 26/10/2022 14:59

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 14:56

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 14:53

There seems to be a fair few people exiting here

[fenners66] 26/10/2022 14:50

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 14:43

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 14:31

I thought those points too Fenners - where is the growth

Maybe why its hit a wall at 24.5p