Dx (group) Share Discussion Threads

[stemis] 28/10/2022 12:14

DX identify what adjustments they make to get adjusted figures so investors can make their own judgement about whether they are not recurring and should or should not be excluded from underlying progress.

[qs99] 28/10/2022 10:41

Agreed SteMis, let's hope that is what is going on, so last piece of the jigsaw can be put into place and next trading update can move the business (and SP!) onwards!

DYOR and have a good weekend all
Cheers
QS99

[fenners66] 28/10/2022 10:30

PS65 - no, wrong, not all in response to you I'm afraid.
Moreover there are a lot more people who read these boards than who post.
So , agreed there is no need to think this is just a forum for a few opinions and no need to clutter with one on one arguments.

[stemis] 28/10/2022 09:50

According to the 2021 accounts his salary was £110,000 and "Non-executive Directors have letters of appointment, each with a term of three years (subject to re-election at the AGM) and a fixed maximum termination period of three months".

Shouldn't take long to negotiate.

[qs99] 28/10/2022 09:23

Maybe the delay on the EGM is instis and board negotiating Chairman's resignation to save him the ignominy of being voted out? DYOR

[forrest1987] 28/10/2022 09:02

Inevitable backwards move

Just hope this isn’t a 10% crew and out stock

[swiss paul] 27/10/2022 23:56

Hah you beleive house broker. Shame on you for even mentioning that on this board. Now go and wash your mouth out

[qs99] 27/10/2022 17:45

not sure its been any quieter than usual tbh!

Value is here IMO and I'm positioned accordingly. if new news will post! Hopefully the Chairman can be replaced.

[wallywoo] 27/10/2022 17:39

Let's look at what the analysts are saying, shall we. That's the reason I am going nowhere, and not listening to Fenners!Analyst Opinions – price targets ranging 45p to 57p shareAnalyst Guy Hewett at finnCap, the company's NOMAD and joint broker, has estimates out for the last year to have shown revenues improving from £382.1m to £425.0m, while adjusted pre-tax profits could come in at £20.0m (£12.2m) generating earnings of 2.8p (2.0p) per share.For the current year he is going for £457.0m sales, £25.0m profits, earnings of 3.4p and even a 1.5p dividend per share.He is even more bullish for 2024. Prior to the return from suspension, he had a 57p Target Price out on the shares, however I think that he may cautiously temper that objective.Over at the other joint broker, Liberum Capital, their analyst Gerald Khoo considers that the group's shares have attractive fundamentals, while the company is resilient in its trading.He has £426m sales for the last year, £19.6m profits and 2.6p in earnings per share.For this year his figures suggest £450.0m revenues, £25.4m profits, earnings of 3.3p and a similar 1.5p per share dividend. Cautiously he has a Target Price of just 45p.Conclusion – as 'locked-ins' get out then just jump right into a bargain

[forrest1987] 27/10/2022 17:27

All gone a bit quiet

10% crew sold and gone lol

[fenners66] 27/10/2022 17:02

PS65 - if you look back I already mentioned the "adjustments" in the adjusted -£0.8m exceptionals fair enough - the rest looks permanent

Since "adjusted" are not a statutory number they can basically say what they want just disclose it as such.
That's why I had a look to see what made it up.

Pity some cannot read what I put about the share price likely would bounce from what may well prove to be the bottom

"I think there may well be a short term jump in the share price - was that it so far?" as in by the time I had got around to looking - since they seemed quite low, it may already have had the bounce back into the price.

We'll see. As I also said "Lets see some delivery of growth and balance sheet discipline..."

[forrest1987] 27/10/2022 16:33

That will ensure the share price will carry on rising

it took 4 hours for it to stop rising lol

[forrest1987] 27/10/2022 16:25

odd drop at the end

[wallywoo] 27/10/2022 12:34

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 11:35

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 09:54

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 09:44

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 09:29

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 08:55

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 08:41

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 06:43

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 21:07

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 19:46

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.