Dx (group) Share Discussion Threads

[qs99] 29/6/2023 08:09:38

6% increase in employees is not insignificant....c17% increase in "sites", just now need brokers to fill in the revenue and implied "drop through" to show IMO just how much cheaper on an EV/EBITDA basis DX is!! DYOR

[qs99] 29/6/2023 08:05:44

250 employees at say £30k all in cost per employee (NI, pension, overhead attached etc) is .£7.5m so not sure they would buy more employees than revenue no? DYOR

[nigelpm] 29/6/2023 08:04:54

what do you think?

[qs99] 29/6/2023 08:04:20

Seems a trifle low no?

[nigelpm] 29/6/2023 08:02:25

Good question - c/£1k a month? So what c.£6m per annum - that was my very high level finger in the air.

[qs99] 29/6/2023 07:20:19

Yup, the whole nine yards.....wonder how much revenue those 550 clients will add?!

[this_is_me] 29/6/2023 07:17:36

....and extra delivery drivers etc.

[qs99] 29/6/2023 07:17:25

Boom, brilliant and IMO this share should be double what it is given likely TU and this news. DYOR.

Picking up sites, staff and clients super cheaply, always an opportunity out of liquidation as liquidator (from experience!) just wants enough cash to pay his bills and get done of the project.....DYOR and IMO

Happy to have topped up!

Cheers
QS99

[molatovkid] 29/6/2023 07:13:33

Wow, new sites and 550 extra clients! Masterstroke.

[everton448] 29/6/2023 07:12:26

Well this looks like very, very good news indeed!

[paulisi] 29/6/2023 07:07:00

Cherry picked Tuffnels staff, sites and customers.Should see big increase in revenue and hopefully share price.

[stemis] 28/6/2023 16:19:43

Yes, in early 2021 the share price reached 37p after a trading statement that foreshadowed interims of a 0.65p EPS and cash of £14.1m. Here we are, 2.5 years later, in which the last interims (2023) showed EPS doubled to 1.3p, cash increased to £36.4m and a 0.5 dividend introduced, at 31.5p

[qs99] 28/6/2023 15:31:40

Good solid buying, let's hope it presages a decent rise finally!

[qs99] 28/6/2023 08:51:21

Nice RNS

looking forward to next TU
DYOR

[qs99] 15/6/2023 12:05:12

Fair point, will look at. Depends how long the leases are. Plus recent acquisition of freehold is a good step forward

[stemis] 15/6/2023 11:27:23

I'd be careful calculating EV/Ebitda. Most of the depreciation relates to Right of Use Assets. If you are going to add that back to get Ebitda, then you should deduct lease liabilities from cash.

[qs99] 15/6/2023 11:15:19

thanks, all very useful posts, much appreciated.

Do no brokers ever look at EV/EBITDA ratios given the cash generation here?

[nigelpm] 14/6/2023 22:38:59

Yes - very positive - Live Chat - we are currently experiencing high volumes of new sales enquiries on our live chat. Any sales enquiries should be sent to [e-mail].

[everton448] 14/6/2023 22:17:28

https://www.dxdelivery.com/service-updatesGood to see this re sales enquiries

[tole] 14/6/2023 18:21:30

https://masterinvestor.co.uk/equities/small-cap-catch-up-a-dirty-martini-and-a-quick-delivery/DX (Group) (LON:DX.) – Valuation Headwind Gone, Shares Are Very CheapThe news that this delivery services group has reached a full and final settlement with Tuffnells, which related to a claim set up in February this year, is extremely positive for the group's shares.It has taken the perceived drag off the equity and now gives the market an unhindered view on just how well the company is trading.We had a very bullish statement on trading in late February showing continued revenue, profits and cash growth.Apparently, the group has suffered no impact on its current year expectations or even afterwards following this settlement.In late February analyst Robin Byde at Zeus Capital stated that the group was 'better placed for growth' while putting out a discounted cash flow valuation on the shares of 45p.For the year to early July his estimates were for revenues to rise from £428m to £456m, with adjusted pre-tax profits lifting from £20.2m to £26.1m, generating earnings of 3.28p per share in earnings, enough to pay out a 1.5p dividend.For the coming year Zeus goes for £478m sales, £30.3m profits, 3.58p earnings and 1.62p of dividend per share.Further out they see £500m revenues, £34.8m profits, earnings of 4.10p enabling a 1.75p dividend.Over at finnCap, their analyst Guy Hewett has set a 57p price objective for the shares.His current year has £465m revenue, £25.4m profits, 3.7p of earnings and a dividend of 1.5p.For 2024 he goes for £484m sales, £29.9m profits, giving 4.4p of earnings and paying out a 1.7p per share dividend.The 2025 estimates are £504.3m turnover, £33.6m profits, 3.8p earnings and a dividend held at 1.7p.The £187m capitalised group's shares at last night's close of 31p look extremely attractive.We know that the business is continuing to expand and based upon the above estimates the shares are significantly undervalued.

[stemis] 14/6/2023 09:39:38

It's just a morning note, saying

Investing for growth alongside accelerating opportunities

DX has announced the proposed development of a major new Regional Hub in the East Midlands. The new hub, which will include a new depot serving the local area, is expect to cost c.£12m in total and will be funded from the group’s cash resources (we forecast net cash of £34m at June 2023E). Detailed planning permission has been secured, the acquisition of the site is expected to complete within the next two months and construction complete during Q2 2024. This investment is in addition to DX’s three-year investment programme, which is currently in its second year, of between £20-25m and comes soon after the news that competitor Tuffnells (2021 sales: £178m) had entered into administration. With DX’s focus on high service levels and commercial terms already proven drivers behind increasing market share and rising operating margins, Tuffnell’s failure and its c.4,000 customer base (many of whom will have used both DX and Tuffnells) represents a very real opportunity to accelerate growth. The likelihood of forecast upgrades has increased significantly: a point absent from the FY 2023E P/E of 8.5x and 9-10% trading free cash flow yield.

It's free access through research tree

[qs99] 14/6/2023 09:27:54

Thanks Everton, any TP?

It is cheap at double this price on an EV/EBITDA basis IMO (see earlier posts) so any upgrades will only help that metric, DYOR as ever.

Hope cash generation can help increasing yield and maybe some buy backs if loose stock around. DYOR

[everton448] 14/6/2023 09:00:21

Positive Morning note from Finn Cap. Points to likelihood of upgrades to forecast following Tuffnells demise and reminds readers that many of the Tuffnells customers will have used both companies

[qs99] 14/6/2023 08:04:37

Thanks Nigel

Great organic initiative RNS this morning IMO, good use of cash

[nigelpm] 14/6/2023 07:45:38

Big regional hub RNS - suspect this was devised long before Tuffnells were challenged but perhaps that news of admin accelerated the investment decision.