Dx (group) Share Discussion Threads

[stemis] 26/10/2020 14:24

Since 19 March directors/PDMR have bought 3,295,803 shares starting at 7p all the way up to 19.5p. They clearly see value...

[sphere25] 26/10/2020 12:50

Quite abit of director buying here of late. Are they trying to send a message?

"DX, the provider of delivery solutions, including parcel freight, secure, courier and logistics services, announces that on 26 October 2020 Paul Goodson, Non-executive Director, purchased a total of 400,000 ordinary shares of 1 penny each ("Ordinary Shares") at an average price of 19.2 pence per Ordinary Share.

Following the above transaction, Paul Goodson has a total beneficial holding of 3,301,510 Ordinary Shares, representing 0.58% of the Company's issued share capital."

[tomps2] 16/10/2020 10:39

DX. a David Thornton pick in yesterday's piworld interview. Hear what he had to say at 14m34s:

video:

podcast:

Next week on piworld, Thursday 22.10.20, 1pm, we have a Superstar interview with one of the two most popular interview guests, Andy Brough, Schroders, Head of UK & EU mid and small cap team, & Richard Leonard, from a Family Office. Register here:

[effortless cool] 14/10/2020 11:40

An interesting presentation. Without wishing to denigrate, management came across as solid, rather than inspirational (although the CEO did not take part). Their approach to turnaround has been more evolutionary - do things better, rather than revolutionary - do things differently.

There is clearly a lot more scope for improvement, particularly on the freight side, and I was left feeling comfortable with their ability to deliver these improvements over the course of next few years.

[my retirement fund] 13/10/2020 21:21

1.45 M shares taken at 20p. Someone at the sharesoc meeting was impressed then :)

[effortless cool] 13/10/2020 10:48

Very interesting. Looking forward to their ShareSoc presentation this afternoon.

[miti 1000] 13/10/2020 10:32

No, its been above 20p last month...some huge volume today so hopefully its onwards and upwards....added more earlier

[sharesoc] 04/10/2020 19:42

Reminder, for those interested, we are running a ShareSoc Webinar with DX Group (DX.), 13 October 2020. You can register here:

[stemis] 29/9/2020 13:50

And that's another 200,000 bought by directors. I must admit I don't think I've ever seen such concerted buying by directors in a company before.

[sharetips] 29/9/2020 11:08

see www.cityconfidential.co.uk for comment

[stemis] 28/9/2020 13:33

Management certainly see value here.

I now make that 2,695,803 shares purchased by directors/PDMR since 19 March at prices starting at 7p all the way up to 19.5p.

[sharesoc] 27/9/2020 21:31

For those interested, we are running a ShareSoc Webinar with DX Group (DX.), 13 October 2020. You can register here:

[effortless cool] 17/9/2020 18:03

Well, the Chairman certainly thought so:

[stemis] 17/9/2020 12:54

Whilst I take your point about the narrative I'd rather they disclosed more information than less. I'm quite capable of analysing and interpreting the numbers myself so don't take much notice of the commentary (apart from outlook). At the end of the day it's the underlying performance of the business which is important...

[stemis] 17/9/2020 12:46

SteMIS - I don't doubt that P/E ratio is not going to apply for a long time - but its a measure that shows how far this has to go.

Not really, you have to look behind the numbers. The business comprises two divisions;-

Express - has been declining in profitability but indications are that this has slowed and if they can stabilise and reverse the trend even a bit then, on an ebitda of £25m (currently £23.3m) it should be worth 5 x ebida = £125m.

Freight - historically loss making, it has gone from ebitda loss of £14.2m to ebitda loss of £1.2m in 2 years. Indications are that it is now profitable. If they can get it to £10m profit in 2 years then should be worth 6 x ebita = £60m.

That's £185m or 32p a share. I think those are pretty conservative valuations for strategic assets in the industry.

An industry buyer would have synergies from combining the businesses.

[fenners66] 17/9/2020 12:13

So looking at the Balance Sheet
.........................2020 vs 2019
Current assets 45.9 vs 45
Current liabilities 73.5 vs 59.4

Working capital -27.6 vs -14.4


"Working capital increased significantly by GBP13.3 million in the year,"

What ? !

[fenners66] 17/9/2020 11:51

SteMIS - I don't doubt that P/E ratio is not going to apply for a long time - but its a measure that shows how far this has to go.

They are supposed to be a recovery play - I get that - but they have been one for years and maybe they do not recover a whole lot more from here.

Their overheads are up.

They are over-egging the progress and I hate seeing the spin.

Its the spin in the numbers - you expect it from the sales team etc but the numbers are too easy to interrogate - if you can be bothered.

They are not alone - the whole market is littered with spin and adjusted this , exceptional that. I think the market is getting worse.

They keep adding more accounting rules and in response companies keep piling in additional adjusted figures , spin, or just plain pages of this and that to bury the actual accounts with.

[fenners66] 17/9/2020 11:44

"Working capital increased significantly by GBP13.3 million in the year, mostly because of the deferred payments referred to above."

Sorry ?

Working capital increased because they owe more money in deferred payments?

WTF?

So that deferral has added to cash - tick - current assets

But it must also be in current liabilities - you still owe it and its not a long term liability

Who writes this stuff ?

[stemis] 17/9/2020 10:50

This a recovery play which will turn into a takeover play. It's not a value play, so just applying a P/E to current earnings isn't going to tell you a lot.

[fenners66] 17/9/2020 10:26

I scanned down to the stat results bit and thought I might be able to judge the business by this line

"Underlying operating profit was GBP2.2 million (2019: GBP0.2 million)"

after all that is what the "underlying" term is supposed to be used for.

But then the P&L says
Underlying profit 2.2m

Less - amortisation -0.3 can't escape that
Less - share based payments -1.2 Wtf if you paid cash that would be in already !
Less - Finance costs -0.4 Doh ! of course

Profit before tax £0.3m ! wow... happy days

But ...

Tax £-0.5m


So actually a Loss of £0.2m


Market cap £110m so a P/E ratio of -550...

[fenners66] 17/9/2020 09:57

More of the same spin ...

"Operating cash flow was very strong at GBP16.9 million (2019: GBP3.2 million) "


Wow !
Fantastic !

well done ....
but at least they did not hide the next bit

"supported by GBP10.4 million of agreed payment deferrals (mainly VAT)"

Oh!

If payments had been deferred at the year end of an ordinary year - there would be questions as to whether this was just window dressing the balance sheet.

Its not a normal year - but bragging about £13.7m improvement when at least £10.4m is just deferred is more BS.

Its the f'king spin I hate - not just here but any set of accounts.

To accept the headlines is just being led like a sheep - but who can be bothered to read past just the headlines ?