Dx (group) Share Discussion Threads

[glavey] 11/12/2017 10:59

ls24, Are you suggesting that DX don't presently compete in the 'small package with tight size restrictions' sector then?

[ls24] 11/12/2017 10:36

I will try to help. Tuffnells has a decade of strong growth through recessions with a strong and knowledgable SMT, the new owners removed them and leadership/knowledge are critical in this unique sector of the transport industry. Target were in it until they were sold then merged, they made great money when privately owned and in control also. DX operate trucks they are flexible on what they can carry, almost all other carriers operate automated hubs with tight size restrictions and deliver via a small van subcontracted fleet. These other carriers do not want what DX can handle here is the opportunity - charge the right rate for the products others can’t handle, keep out of small parcel domestic deliveries as your cost to serve is far higher running legislated trucks. LD and his new team know what it takes to make good money in this sector, especially when the primary competitor has lost all its experienced successful SMT

[fenners66] 11/12/2017 09:59

Is 24 you can have your Opinion on knowledge - I will add some facts.

DX Group (now Ex ) CEO Petar Cvetkovic managed Initial Citylink. The Rentokil owned business took over rival Target in 2006 but only lost money, in 9 months through 2009 they lost £25m.

Business was sold to Better Capital for £1 in April 2013 - so a really low cost base.
But it collapsed in Dec 2015 despite £40m investment.

Assets were sold to DX for £1.125m in Jan 15 - so cheap what could go wrong?

Well Better Capital founder John Moulton said

"But cut-throat competition in the online delivery sector drove the business into insolvency.
He blamed the collapse on “overcapacity in the market which is driving down prices” noting the trend for retailers such as Amazon to take more of their delivery operations in-house. "

What would he know eh?

But DX bought assets for a song so nothing can go wrong now huh?

Pre tax loss of £82.3m in the year to June 2017 - all going so well

Connect owns Tuffnells - major competitor and saw its operating profit down 19.9% - Quoting "In what was an increasingly tough market as the year progressed, disruptive price competition for larger customers particularly in the second half of the year, impacted margins.

They also have a Pass My Parcel Business that lost £6.3m up about 50%

London Courier Jinn (included delivery from stores) also collapsed.

So despite the increased demand for parcel delivery from internet sales - it IS the overcapacity in the market which is driving down margins !


What do you mean "can see 10p in the pound" ?

Closest I can get is the creditors of CityLink expected to receive 2p in the £ from their administration.....

[ls24] 08/12/2017 11:08

Fenders your lack of knowledge of this sector is shocking, there is more freight than carriers able to handle it hence why the opportunity is huge. Commercial stupidity has created this and it will take a year or so to completely transform the bottom line, can see close to 10p in the pound within a couple of years as the customer base is cleansed and service improves

[fenners66] 08/12/2017 09:47

Ok so share price continues to fall and no one comments.

I previously wrote about the cash outflow disregarding all of adjusted numbers says this business is a disaster.
Has anyone found any detail on the £160m written off goodwill?

The new team want millions of free shares just for doing their jobs - well not even managing that - getting rewarded if the share price reaches 10% of the floatation price !

It seems to be there was a way to justify that after all - watch the share price plummet some more and then if it goes back up a little then hey presto job done !

Seems to me that despite growth in parcel delivery on the back of internet retailing there is overcapacity in this industry - someone has to go to the wall .....

[ls24] 29/11/2017 08:06

Positive move then imo tuftymatt, it will be interesting who comes in. LD will want things done a certain way so I expect some Tuffnells appointments in the new year, and a huge cultural swing

[tuftymatt] 29/11/2017 06:00

Is24, Both PC and SG from the old guard are gone now with the latter most recently departing. The clear out of those who saw this fall to 6p was obvious if it was ever going to have a chance of recovery.

[ls24] 28/11/2017 21:04

The darkest hour is just before the dawn, they have the first real chance to make this work imo

[fenners66] 28/11/2017 16:27

Well the announcement this morning has done nothing positive for the share price - either the market does not like it or it is an irrelevance and the share price was going down anyway.

[ls24] 28/11/2017 12:53

LD won’t be able to do it with the old Guard imo, he will look at his men to get the job done and they will get the incentives, not the ones who got DX in this mess and CL before that

[fenners66] 28/11/2017 12:19

Forgive me - I have not looked it up

I guess the CE is new
but is the Chairman ?

[skinny] 28/11/2017 12:11

Bless :-

These Recovery Awards are anticipated to be made over material numbers of shares:

(i) Chief Executive - approximately 13 million Shares

(ii) Chairman - approximately 7 million Shares

[tuftymatt] 28/11/2017 12:03

The old guard that failed are gone so the new boys want big rewards for moving the share price up. That's understandable from their point of view but for long term holders it will still feel painful even if they reach the targets.

LD has made key personal changes already to start the recovery process so I guess time will tell if it works or not. Either way anyone who has rode this for circa 4 years is going to have to hold on for a long time yet before they have a sniff at making a profit imho.

[ls24] 28/11/2017 11:45

I would imagine the basics enjoyed would be far less than those paid for the failure, that tends to be Dunns' way of running a company. Far better to have hungry 'turnarounders' than comfortable pen pushers. If this team deliver 5x current share price it increase value of the business by tens of millions - I would guarantee whatever they get would be a fraction of that, let alone the value of job security for the employees. Too many BoD's get rewarded well for failure, just look at the banks, success will be rewarded here.

[skinny] 28/11/2017 11:32

Exactly - nice work if you can get it!!

Recovery Awards shall be subject to a Share Price performance measure as follows:


3-4-5 Year Share Price % of Recovery Award that
target Vests
----------------------- ----------------------------
Less than 12.5p ------------> 0%
----------------------- ----------------------------
12.5p ----------------------> 25%
----------------------- ----------------------------
Between 12.5p and Pro-rata on straight-line
50p basis between 25% and 100%
----------------------- ----------------------------
50p ----------------------------> 100%
----------------------- ----------------------------

[fenners66] 28/11/2017 11:16

Its sends me a signal that they care far more about themselves than the company they have been appointed with a salary to sort out.

Sorting it out is their job - that's what they get paid for , they do not have to have massive bonuses just for doing their jobs !

Imagine applying that logic to everyone working - where would we be then ?

[fenners66] 28/11/2017 10:15

No one got a comment on the latest announcement ?

I can imagine day 1 after the "appointment" of the new directors

"Ok guys lets get down to business we have some serious issues to sort out immediately otherwise this is going to get very messy very quickly."

"yes you're right we are right on the edge here and the shareholders are going to expect immediate action to address the problem."

"Of course , so lets get straight to it ! How much are we going to reward ourselves ? "


Says an awful lot about the focus of the directors - first item to sort out is how they get £millions out of the company - with accrued dividends on the share before they vest as well.

Oh and as shareholders if you do not vote as we say - there will be breach of contract issues and a side issue of the interest doubling to 16% !

Come on shareholders vote as directed otherwise its the naughty step for you!

[pally12] 15/11/2017 13:21

DX's Annual General Meeting will be held on 8 December 2017 at 10.00am at Ditton Park, Riding Court Road, Datchet, Slough, SL3 9GL. 

[ls24] 06/11/2017 18:23

Think its put in what you can afford to lose, if it comes off you will be looking at 60p+

[freddie ferret] 06/11/2017 16:50

Reminds me of ALM.

[r ball] 05/11/2017 12:33

Avoid. Is a sector dog. Try clipper?

[ls24] 05/11/2017 11:45

Tennis elbow, DX and Tuffnells operate trucks. Majority of drivers are employed, you can't work driving taxis all night and take 4 hours kip and drive a 7.5 T multi drop. I would imagine DX would be a winner in this as competing with poorly regulated self employed couriers when you have a tacho in the cab is unfair, unjust and simply wrong. I always wonder what insurance the old bird delivering with kids in the car at night has

[tenniselbow] 04/11/2017 12:23

All parcel and couriers will be hit by the RI35 rules many will go bust