Dx (group) Share Discussion Threads

[katsy] 01/11/2023 08:02

Can't make heads of tails of today's RNS. Although it does say at least 48.5p

[solarno lopez] 01/11/2023 07:20

Done deal now

[swiss paul] 31/10/2023 15:13

DX, a leading provider of delivery solutions, including parcel freight, secure courier, 2-Man, and
logistics services, is pleased to announce the reopening of another former Tuffnells Parcels Express
Limited (“Tuffnells221;) depot. The depot, located in Stafford, is one of the 15 depots taken on by DX from
the Administrator of Tuffnells in late June 2023. This latest opening takes the number of former
Tuffnells sites to have been reopened to 13.
The new depot is located on the Beacon Business Park, north-east of the Stafford town centre and
comprises a 15,190 sq ft facility. It is the latest addition to the Group’s Parcels network, part of the DX
Express division, which provides highly secure, tracked deliveries to both business and consumer
addresses. As well as providing further capacity, it will improve operational efficiencies, by reducing
stem mileage and carbon emissions, and enhances customer service levels, a key focus for the Group.
This latest opening is part of the ongoing major capital programme in the business as management
continues to drive the Group’s growth and development.
Paul Ibbetson, Chief Executive Officer of DX (Group) plc, commented:
“The opening of the Stafford depot means that we have now reopened 13 of the 15 depots that we
took on from Tuffnells’ Administrators in late June. It increases the capacity and capability of our
Express Parcels operation, which is growing strongly, and deliversfurther efficiencies, environmental
and customer service benefits.
Expanding and improving the depot network underpins the continued successful delivery of our
growth plans, and we look forward to reporting on further openings over the forthcoming months”

[ls24] 30/10/2023 11:04

Evri lead the no frills or service small parcel race to the bottom. Like all glued to the internet boom the volumes drove efficiencies and profit, when they drop and you are the go to carrier for low price and nothing else you have an issue. DX operate in different ponds with different clients who demand more of a relationship without the constant pressure of the market taking prices down v inflation. Evri offer a great solution to low value freight to home that is not urgent for clients who demand a low price

[qs99] 30/10/2023 09:02

Sorry, badly phrased mate, Evri are at the bottom of the pile IMO knowing someone who has worked with/for them re customer service so way off DX, DX are above that and highly profitable with IMO a slightly different business model. As you say se81, DX is highly profitable, with organic growth showing helping to show that customer service is being delivered and should IMO command a much higher valuation metric. Cheers

[se81] 30/10/2023 08:41

Ermmmm Evri is also a delivery company...

Maybe take a look at the deal advent did for them (then Hermes) in 2020? How much they paid for a cr*p asset in the sector? Compare and contrast with this offer for a growing, profitable DX?

[qs99] 30/10/2023 08:13

Not sure what that has to do with DX in many ways, but customer service is everything, lose that and you are on a downward spiral IMO

Another decent RNS this am, further pressure on Board to get a counter offer in or up the takeout price DYOR

[se81] 30/10/2023 07:48

Evri (PE owned) flagging

[qs99] 29/10/2023 10:04

Let's hope we see more price action this week, indicating how good the Board have been (or not as the case may be!) DYOR

[dangersimpson2] 27/10/2023 13:15

The board seem a little quick to roll over, so a combination of a trade buyer bidding, who can access synergies and/or scale, plus a couple of PE bidders who can access leverage would perhaps be the only hope to get a decent premium.

[qs99] 27/10/2023 12:51

ok ls24 thanks.

[ls24] 27/10/2023 11:50

Work in the transport sector so ''rumours'' are always flying about, but this is a really cheap buy at the price offered so not shocked if some trade interest comes in.

[qs99] 27/10/2023 11:25

Great to hear, let's hope the "rumours" are true (where did you hear them please?)

Sitting on an EV/EBITDA historic ratio of 3.6 from my calculations at current price, how on earth can that be the right buyout price?

should be a minimum of 30% above that in my view, given no dividend, end of capex investment, so the cash flows accruing to the P/E firm will be massive IMO each year .....

BOARD of DX, DO YOUR JOB!!

[dangersimpson2] 27/10/2023 10:33

48.5p is now looking really light, given the strength of the last set of results, and that the positive impact of taking on some of the Tuffnells depots and business has yet to appear in the accounting figures. It wouldn't be hard for another PE house to put together at least a mid-50s bid. They are financially stronger than in the recent past, too, so they can be leveraged, which is one of the key things for PE to "juice" their returns.

[ls24] 27/10/2023 10:28

Counter bid rumour is circulating - would be a good fit for a Global logistics company. Little competition in the IDW sector and huge growth potential in 2 man and Express make this a cheap buy well above 50p

[qs99] 27/10/2023 10:14

Counter bid would be good, but can't see it, just think the board need to grow a pair and do their job & not allow this to be bought on the cheap! DYOR

[se81] 27/10/2023 09:03

Or that counter bid has come in ;)

Dare to dream!

[everton448] 27/10/2023 08:56

News coming you'd imagine (or it's been tipped somewhere in E or ration if a firm offer)....

[qs99] 27/10/2023 08:50

Interesting tick up, anyone think bid may therefore come in next week? DYOR

Do we think Board will have done their job and nudged bid above 50p?

DYOR

[katsy] 26/10/2023 15:27

Seems strange that nobody is willing to take what for me seems to be a low risk punt to make 13-14 percent returns on this. Management are happy with the offer, HIG are getting this on the cheap. Yet either investors don't believe it or they think 13-14 percent is not worth it.

[hillock1] 26/10/2023 11:10

One week and few days to 6 Nov to know if an offer is official from the HIG

[swiss paul] 23/10/2023 21:47

SteMIS - any update?

[swiss paul] 18/10/2023 20:32

If you have found him helpful - can you ask why they are not doing a hybrid AGM?
cheers

[stemis] 18/10/2023 17:29

I'd be very surprised if all the options don't vest on a takeover. I've already written to the FD setting out my views and he's acknowledged my message. I've always found him very helpful.

[qs99] 17/10/2023 13:59

Thanks, really useful and sorry I missed that, should have looked back.

So suitably incentive on the way "out" to get North of 50p, which is where it has to be surely on recent trading / value / net cash etc post Tuffnells?

Then they can negotiate someone appropriate on the way "in" to the new vehicle/ownership.

DYOR