Dx (group) Share Discussion Threads

[qs99] 29/11/2021 14:39

Looks like full 25p offer about to be paid.. DYOR but buyers returning and whether you like Gatemore or not, their intervention has helped IMO

[nigelpm] 29/11/2021 14:20

As to Gatemore, I wouldn't trust them as far as I could throw them. Maybe you don't recall how one of their analysts was on this board, praising DX. to the moon...whilst Gatemore were at the same time selling down their stake.

Really?

Where's that? What post?

[stemis] 29/11/2021 14:07

It hasn't 'worked out' anything yet.

[molatovkid] 29/11/2021 13:55

The only truth that matters is the price.

I think that will be my learn from this unsavoury situation. Never get too wrapped up in any one business. I had this down as one of future bankers before 'that' RNS. That worked out well eh?

[qs99] 29/11/2021 13:52

Whatever the views, IMO the market are telling us that Gatemore are right about value being there and are marching it back up to 30p IMO.....DYOR but have bought a decent chunk accordingly!! GLA

[stemis] 29/11/2021 13:49

Sorry marktime1231 but most of that is rubbish. How can you know how serious the issue is or who is to blame (although it hasn't stopped you slinging some mud at Mulligan and a bit at Series) when you don't know what the issue actually is.

It's ridiculous to say that the cashlow earmarked for investment in growing the business should have been distributed to shareholders instead. If you don't like growth business, don't invest in them...

As to Gatemore, I wouldn't trust them as far as I could throw them. Maybe you don't recall how one of their analysts was on this board, praising DX. to the moon...whilst Gatemore were at the same time selling down their stake.

The thing to do is wait for DX. to announce the results of their investigation and then shareholders can decide how the company moves forward. Don't see why Gatemore should get a preference in that compared to the other large investors.

Anyway, what is this "we are all suffering the same hit to the share price. We should all want to know what the Board knows!!!!!". You don't own any shares.

[marktime1231] 29/11/2021 13:38

I don't think Gatemore want to sell either, but they do want to start getting a return on their investment.

[stemis] 29/11/2021 13:36

There's absolutely no way I would accept a 40p takeover.

[4north] 29/11/2021 13:10

I'd be surprised if Gatemore don't already know what is going on.

[mbdx7em21] 29/11/2021 13:10

sufficiently reassured by Gatemore statement, i have bought in

[nigelpm] 29/11/2021 12:58

absolutely stemis - this is nothing about shareholder value and everything about profit for Gatemore. Still a helpful intervention.

[qs99] 29/11/2021 12:56

you make a fair point, of course they will be looking after their 20% stake interests, but to do that, the wider company interests need sorting out so we should all at least be "aligned" on shareholder value. If they find someone willing to pay 40p takeout, then why not if that is what they want to engineer.

1st up though is sorting comms/governance out, share price will follow as will possible demand on a bigger scale for them to also sell to an insti.

let's see, but I see this as a big positive.

DYOR

[stemis] 29/11/2021 12:29

I don't think Gatemore are necessarily in a position to dictate what they want.

There are 6 other shareholders (inc Lloyd Dunn) who hold 47.7%. I imagine they'll be ringing around to get their views. No doubt a few will be quite suspicious of Gatemore's intentions and pretty lukewarm on them getting preferential information on the company.

[stemis] 29/11/2021 12:19

Gatemore getting a seat on the board might mean they find out exactly what is going on but it doesn't mean we will. If (and I believe there are) matters of confidentiality then it may not be possible to make them public.

It's true that the share price has recently been disappointing, despite DX. consistently over delivering. However I've always though this would end up in a sale and the management team obviously believe there is an opportunity to significantly increase the scale of the business before that. Consequently I'm relatively sanguine about short term share price and even a short term suspension.

However Gatemore's interest are clearly not be the same as mine. They effectively paid 10p for a lot of it's shares as part of the refinancing and clearly want out (although at a decent price). They've been selling down for the last year or so (down from 35.58% to 20.5%) so this has been a spoke in their wheel.

I'm not supportive of Gatemore engineering a sale of the company at this too early stage just so they can cash out.

Don't be fooled. Gatemore don't want a seat on the board to look after our interests but to look after their own.

[qs99] 29/11/2021 11:08

That is a great letter. With 20% they can certainly get what they want IMO, but at least that is a constructive, positive response....DYOR and "strategic" alternatives, well my view that would mean a sale, so do you think the current value is correct?

DYOR

[4north] 29/11/2021 10:33

Quote from Gatemore letter:

"We continue to be very pleased with the Company's operational performance."

.......

"This impressive operational performance is due to the tireless work of DX's CEO Lloyd Dunn and his excellent senior management team, including CFO David Mulligan, Managing Director of DX Freight Paul Ibbetson and Managing Director of DX Express Martin Illidge, as well as a strong team beneath them."

[4north] 29/11/2021 10:28

Let's hope that Gatemore's proposal is accepted, or at least we see some more transparency about what is going on.

[4north] 29/11/2021 10:24

Gatemore (20% shareholder) are supportive of the Company and are pleased with the Operational performance. Their displeasure is around the behaviour of the Board and the way that the recent announcements have been handled. I'm sure that many shareholders feel the same.

[aishah] 29/11/2021 09:56

Gatemore:
"We continue to be very pleased with the Company's operational performance. During FY21, DX upgraded its profit forecast no less than five times. The Company has successfully returned to profitability and is expected to generate c.£50m of cumulative free cash flow over the next three years (FY22-FY24)[1]. DX has a very strong balance sheet with a net cash position, no pension liability, and freehold ownership of its Willenhall hub, an asset we estimate to be worth £20-25m[2]. DX is the leader in service quality and has leading market share in the UK in IDW (irregular dimension and weight) freight, a segment which the Company estimates is growing at 10% per year[3]."

[4north] 29/11/2021 09:19

One major investor isn't happy: hxxps://www.prnewswire.com/news-releases/letter-from-gatemore-capital-management-llp-to-dx-group-plc-301432615.html

[qs99] 29/11/2021 09:00

I agree.....could this be a disclosure or other type issue, non-financial and during this busy period they can't get it done in time so bad planning? DYOR etc...

Have also topped up this morning, as see this trending back to 30p+.....GLA and DYOR

[croasdalelfc] 29/11/2021 08:38

The new auditor is just checking the work of the old auditor - good practice given they've been shat on in the past. The timing and dates are unfortunate but presents opportunity

[molatovkid] 29/11/2021 08:31

Christmas came early this year. Delivered by DX!

Topped up in very low 20's and now looking like it was a good play.

Back to 30p+ !