Dx (group) Share Discussion Threads

[stemis] 18/10/2021 09:20

I don't think it reflects anything that is likely to be in the results when they are issued. The company has already confirmed that 2020/1 is in line with guidance and that current trading is in line with market expectation (which I believe is a 40% increase in PBT).

[everton448] 18/10/2021 07:30

No date for results. Now 12 days since the delay was announced and silence from the company. Already a month later than last year. None of this promotes confidence.

[my retirement fund] 14/10/2021 11:41

Grant Thornton LOL ! They are probably to busy fighting court cases for other audit work they did i the past to sign off DXs

[everton448] 14/10/2021 10:28

It really does, doesn't it. Infuriating.

[stemis] 14/10/2021 10:12

Annoying and reflects poorly on Grant Thornton

[everton448] 14/10/2021 08:34

Another day with no timeline for the announcement of results

[everton448] 12/10/2021 08:40

Today should have been results day. Not very impressive that Grant Thornton are unable to provide the company with a revised date.

[tenniselbow] 09/10/2021 17:57

Ladder arrived on time and in perfect order

[tenniselbow] 08/10/2021 09:34

Having a delivery today a roof ladder from screw fix interested to see if damaged as it not a nice item to transport going through hubs

[chris moja] 08/10/2021 09:26

DX gets a positive write up in MasterInvestor;

[stemis] 06/10/2021 12:39

Sorry you are right, it does relate to 2019. Don't why it appeared in my twitter feed recently...

[everton448] 06/10/2021 12:11

I may have misunderstood your post (in which case ignore me!) but I thought you were suggesting this was an ongoing issue between GT and SD

[everton448] 06/10/2021 12:06

SteMiS - This situation - "Similar situation at Sports Direct where Grant Thornton are auditors..."

[stemis] 06/10/2021 10:47

What issue do you mean?

[everton448] 06/10/2021 09:33

Is that right? I thought that was an issue from 2019 rather than a current problem

[fenners66] 06/10/2021 09:33

Yes that is embarrassing for GT
Up to the CFO to be demanding a discount now , because of the reputational impact...

[stemis] 06/10/2021 09:31

However, that we are halfway through H1 2021/2 and trading is in line with market expectations is good news. Suggests worries about drivers and fuel costs are overblown. Market expectation, I believe, is a PBT of £16.5m which, after a proforma tax charge (although in reality we have losses) would put us on a PE of 13 with an increasing cash pile

[stemis] 06/10/2021 09:05

Similar situation at Sports Direct where Grant Thornton are auditors. Maybe, after being fined over their Pattiserie Valerie 'audit', GT are finding it's taking longer to do audits properly. We really should get ourselves a proper auditor...

[wrgrant177] 06/10/2021 08:09

From Liberum this morning:

DX has announced the postponement of the publication of its FY results, previously scheduled for 12 October. No new date has been set. DX’s auditor, Grant Thornton, has notified the group that it cannot meet the previously agreed audit timetable. This is due to Grant Thornton’s internal resource issues and the need to replace the Statutory Auditor. DX expects to report results in line with previous guidance. Trading in the new financial year to date has been in line with current market expectations. No material audit issues have been raised to date by Grant Thornton. Our view is that while this is disappointing and distracting, it does not alter the financial position, outlook or investment case for the group.

[eca04bpm1] 06/10/2021 07:53

Sounds like the delay is due to the auditor as opposed to DX though

[everton448] 06/10/2021 07:28

Delayed results - disappointing news

[wrgrant177] 28/9/2021 11:10

"Contrarian" view on why DX is misunderstood at the moment by the market:

•DX is a compelling contrarian pick – because the stock is misunderstood, it has underperformed compared to its peers, creating a very attractive entry point for contrarian investors. Liberum and finnCap have price targets of 50p and 57p respectively representing 65-90% upside from today

•Despite negative sector headlines around driver shortages and other Brexit- and covid-related supply chain disruptions, DX is well positioned to continue to grow margins and profit, particularly in its IDW, B2B freight business, in which it is a dominant player gaining market share

•Driver shortages are not materially impacting DX’s ability to deliver due to its long-term focus on attracting, training, and retaining drivers, and the specialist markets it operates in

•As a result, the unique pool of DX drivers serves to further cement its leadership position in the IDW market during this time of driver shortages and positions it to further capitalise on higher volumes

•As a read across from Royal Mail results, the trend for higher UK parcel deliveries reflects a permanent shift towards more online shopping post pandemic and domestic deliveries remain up around a third on pre-COVID levels. Higher costs can be absorbed and H2 margins are expected to be higher than H1

•finnCap noted this positive read across to DX from Royal Mail: “DX is able to maintain medium term growth through margin expansion and market share gains despite tougher labour market and inflationary pressures for competitors”

•Larger groups like DX are clearly better placed to take advantage of higher volumes and absorb the well published labour challenges in the market today, and in the case of DX, outperform given its deep pool of employed specialist drivers

All views expressed are my own. I am an Analyst at Gatemore Capital Management. Gatemore, its affiliates and clients may, as at the date of publication, have a long or short position in the securities covered in this document. We intend to continue trading in these securities and may at any time be long, short or neutral these securities (or any other securities of the same issuer) or any related securities, regardless of the position or views expressed in this document. Gatemore currently controls a 20.15% stake in DX Group.

[stemis] 20/9/2021 10:39

Whatever the situation is with drivers, it doesn't seem to be interfering with DX.'s expansion plans. Another depot opens...

[my retirement fund] 10/9/2021 13:08

If this breaks lower towards 25p I'll ave some