Dx (group) Share Discussion Threads

[freddie ferret] 21/8/2017 16:36

Um quarter of a p down on the day.
Seems most of the adults are happy.

[fenners66] 21/8/2017 09:37

Another opportunity to allocate losses to exceptionals...

[opodio] 21/8/2017 07:52

zeus cancel forecasts

[opodio] 21/8/2017 07:39

The Company's full year results for the year ended 30 June 2017 are currently expected to be announced in early Q4. They will include the aborted costs of the Transaction and certain other expected non-recurring exceptional items, principally a non-cash goodwill impairment following a review in accordance with the requirement of IAS 36 'Impairment of assets'.


Awful

[skinny] 21/8/2017 07:31

DX announces that the resumption of trading in the Company's Ordinary Shares of £0.01 each ("the Shares") will take effect from 07:30 today, 21 August 2017. The suspension of the Shares followed a request from DX pending the outcome of discussions with the Board of John Menzies plc to combine DX with John Menzies' Distribution division in a transaction that would have represented a reverse takeover by DX under the AIM Rules (the "Transaction").

Following the announcement of 14 August, reporting that discussions had concluded without suitable terms for both sides being agreed, the DX Board is now pursuing business transformation on a stand-alone basis. As stated in the announcement, this approach has the support of both DX's major shareholder and its bankers, and discussions on financing options continue.

The Company's full year results for the year ended 30 June 2017 are currently expected to be announced in early Q4. They will include the aborted costs of the Transaction and certain other expected non-recurring exceptional items, principally a non-cash goodwill impairment following a review in accordance with the requirement of IAS 36 'Impairment of assets'.

The Company continues its discussions with Ron Series on his anticipated appointment as Chairman and it is expected that this appointment will be confirmed in the near term. The appointments to the board of Messrs Black, Dunn and Goodson are expected to follow shortly after that of Ron Series. Further announcements will made in due course as appropriate.

[freddie ferret] 15/8/2017 17:03

I think Gatemore have had quite a big say in the management changes, no proof of that, just a hunch on my part.

I am quite happy for this to remain suspended for the time being and let management get on with generating shareholder value. Once we have seen the changes implemented and there have been RNSs detailing how the business is going then will be the time to remove suspension IMHO.

However there may be regulations relating to how and under what circumstances a listed company can remain suspended and it may not just be a matter of the preferences of the mgmt?

GLA and chill, we are suspended.

[lombriz] 15/8/2017 16:04

The new directors have been lined up for at least six months, so with the dead wood now out of the way, the shares should fly when the suspension is lifted - my guess would be 15p in the short term. Not sure why we're having to wait so long though.

[wskill] 15/8/2017 12:14

That's easy the shorts need more time to ring up instis and try and close

[fenners66] 15/8/2017 11:48

So why still suspended?

[wskill] 15/8/2017 10:43

Whatever it is we cannot trade them for now about time they sacked the previous management I would say .

With Bob as Chairman he is more than capable of making hard decisions and Gartmore can see a decent investment why else would they have increased their holding its going to be difficult for shorts to close when trading starts again I would think.

May be the only reason for this continued bashing of a suspended share.

[tuftymatt] 15/8/2017 10:39

If the reverse takeover is no longer on the cards then should the suspension have been lifted this morning?

[dvb99] 15/8/2017 10:32

How many companies do you know that are operating fine - sack their CEO and FD on the same day??

How big a clue do you want?

One of the directors wanted to step down voluntarily ages ago, but waited until the investigation cleared him!

[fenners66] 15/8/2017 00:25

Freddie >

" I've reproduced the last trading update above.

No signs of real trouble."



Don't turn detective you would never see any clues -
How about this one?

"As part of the reorganisation, Chief Executive Officer, Petar Cvetkovic, and Finance Director, Daljit Basi, will be stepping down from the Board and the Company."


How many companies do you know that are operating fine - sack their CEO and FD on the same day??

How big a clue do you want?

Look around at all the failed companies that did not manage that drastic action and wonder what the real state is here - turnaround "experts" called in ..... and Menzies want nothing to do with them.......

[lombriz] 14/8/2017 20:30

With the benefit of hindsight and having reread the last trading update, which despite the supposed prospect of an imminent deal, seems to envisage DX's remaining a stand-alone company, it looks like the deal had already hit the buffers by that time, which adds credence to the theory that Menzies had been outflanked and were just looking for an out.

However, what matters now is the future, and at least major shareholder Gatemore are sounding very bullish about that. It may take some time for their optimism to translate into a healthy share price; but once the shares come back from suspension, at around 10p a pop they would make a ridiculously tasty morsel for someone like RMG, so I can't imagine they'll stay around that level for very long.

[freddie ferret] 14/8/2017 17:28

I've reproduced the last trading update above.

No signs of real trouble.

Gearing is relatively low.

Turnover per share quite high.

It is currently a low margin business but seems to still be profitable, caveat emptor.

A small rise in profits should allow for a high divi yield or a good rise in the share price

A lot will hinge on the management changes and the reorganisation.

While there may be numpty shorters around, may be it is best if it remains suspended until things become clearer and the market can come to an informed valuation?

[freddie ferret] 14/8/2017 17:19

RNS Number : 0574L

DX (Group) PLC

14 July 2017

14 July 2017

AIM: DX.

This announcement contains inside information

DX (Group) plc

("DX" or "the Company" or "the Group")

Trading Update, Reorganisation & Board Changes

DX, the independent parcels, mail and logistics operator, announces an update on trading, reorganisation of the business and Board changes.

Results for the financial year ended 30 June 2017 are expected to show revenues of approximately GBP292m and adjusted profit before tax (before exceptional items) in line with market forecasts. Net debt at the year end is expected to stand at GBP19.1m. In an exceptionally challenging year, the Company was pleased to successfully renew its contract with Her Majesty's Passport Office as well as sign a number of notable contract wins, including with Avon. Looking ahead, management has completed a review of the Company's expected performance in the new financial year and, taking into account the reorganisational changes referred to below, it now considers that earnings before interest tax, depreciation and amortisation will be broadly flat year-on-year. The Company continues to enjoy the support of its bank.

As previously announced, the Company has been undertaking a wide-ranging review of its operations in the period and, as part of this review, the Company is announcing a reorganisation of the business to create two Divisions: DX Express and DX Freight. DX Express will comprise the DX Exchange, DX Secure, the Courier operations and Mail activities while DX Freight will comprise Logistics, DX 1-Man, and DX 2-Man. DX Express will be headed by Nick Cullen, DX's existing Chief Operations Officer and DX Freight by Stuart Godman, who is currently Chief Commercial Officer. Both Divisional Managing Directors will report directly to the Board. The reorganisation is expected to provide greater flexibility in managing costs and puts the Company in a better position to advance its operational and sales performance and to provide an enhanced service to its customers.

As part of the reorganisation, Chief Executive Officer, Petar Cvetkovic, and Finance Director, Daljit Basi, will be stepping down from the Board and the Company. James Hayward, FCA, has been appointed as interim Chief Financial Officer (a non-Board appointment). James has spent over 20 years working as an independent restructuring and transformation specialist and has been directly involved with over 40 companies at the Board level, both as an executive and advisor in the quoted and private sector. These changes take immediate effect.

DX's results for the financial year to 30 June 2017 are expected to be announced towards the end of September.

Bob Holt, Chairman of DX, said:

"The changes we are making both to the Board of Directors and to the Group's operational structure are aimed at supporting business transformation. In particular the reorganisation provides greater flexibility in managing costs and puts the Company in a better position to advance its operational and sales performance and to provide an enhanced service to its customers.

"In a challenging year, we are pleased to have the support of our bank and remain firmly committed to acting in the best interests of all our shareholders."

Enquiries:

[lombriz] 14/8/2017 14:36

The problem is, both parties have been very cagey throughout, so their communications are always open to a range of interpretations.

In Menzies' latest press release, for example, they juxtapose "DX trading update" and "further due diligence" without saying explicitly that there was a causal link between the two: the trading update may simply mark the moment in time following which they carried out the further due diligence.

However, perhaps the reality was that Menzies was looking for a way to save face, having rushed into agreeing in early June revised terms which they now regretted; they would therefore like us all to believe that it was the CONTENT of the trading update which gave them cause for concern.....

[this_is_me] 14/8/2017 12:00

The trading update said "in line with market forecasts"

Have you never walked away from a deal because you couldn't agree a price? I have. I have also walked away from buying shares that I thought were too expensive.

[fenners66] 14/8/2017 11:18

In other words we don't want to be paying to prop up your failing business.

Let them go to the wall and buy off the administrator for peanuts...

[speedsgh] 14/8/2017 10:48

Seems to me the Menzies' rns this morning is fairly explicit as to their reasons for breaking off talks i.e. the DX Trading Update released on 14/7...

Termination of discussions with DX (Group) plc -

...Following the trading update issued by DX on 14 July 2017 John Menzies undertook further financial due diligence on DX, as a result of which it became apparent to the John Menzies Board that the Combination would be required to be effected on revised terms from those that were jointly announced on 5 June 2017...

[fenners66] 14/8/2017 09:51

I have to say that the rejection of the deal was probably already signalled by Menzies reaction to the police investigation - it looks as though that was a storm in a teacup - but Menzies reaction was "The Board of John Menzies is considering its position "

which looked very much like they did not want to be associated

[fenners66] 14/8/2017 09:47

Yes .

They are announcing a failed strategy - that they have also failed to get plan B going, they have failed to lift the suspension- (why?) so there was a chance to spin some positives - but they failed to do that!

I cannot see why one should believe this management have a grip on running this company.

[this_is_me] 14/8/2017 09:42

The last trading update was only a month ago. do you seriously expect another one now?

[fenners66] 14/8/2017 09:08

Notice that they had an opportunity to give some sort of trading statement - e.g. trading in line with expectations - but they didn't ; so one concludes it is awful.