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I've always suspected that DX's management are the sort of people who would prefer not to be running a listed company, with all the reporting and comms obligations it entails. They're probably enjoying not having to provide any information to the market.
Fair comment Pianista. We are in a better place than being delisted but substantial uncertainties remain. I think the nomad would have been pretty dismayed at GT's letter and the delay in appointing a replacement auditor and probably gave DX the benefit of the doubt until there were some conclusions from the investigation. We now have that and they are still onboard so far so that is a positive.
We could really do with some updates on trading and ops but like I said DX could announce virtually anything and it wouldn't surprise me as there are uncertainties everywhere you look.
Ports – I’m a pain aux raisins man myself… but I agree with you about the derogation: it looks like it’s open-ended; but AIM may well have intimated that it could be pulled at any time if there is a lack of progress. If so, the RNS could at least have stated “the listing continues for the time being”. The RNS kind of says that, by saying “the shares will remain suspended”….if so, it could have been better worded.
The vagueness about the CG issue is something else, and may be understandable. It is generally not in the best interests of a business to wash its dirty linen in public, so I can live with not knowing the details, for the time being. Of course, that makes it difficult to judge the potential impact of the issue…but the company have discussed the matter with finnCap, who haven’t seen fit to resign, so they can’t be that unhappy about it, and must feel it’s manageable; neither has the issue prevented PKF from accepting the auditor’s appointment.
But as I say, I’m only breathing a little easier. When I first saw the RNS, like most PIs, no doubt, I was shocked and dismayed, and can see why some, including FJ, feel pessimistic. I accept that we face another worrying few months, however I would hope DX have learnt their lesson and are now being completely straight with the auditors (and the NOMAD of course), and that audited accounts will follow as a matter of course. M&A is not therefore part of my thinking at this point: the closest thing to that will, I think, be further depot announcements…
Most posters on this board thought we’d never get this far, and avoid a delisting…but we have, admittedly at the eleventh hour. Having achieved that, now is not the time for the company to snatch defeat from the jaws of victory!
Pianista: I side with Ports' opinion on this and see more reasons for pessimism than optimism. Even if the accounts are signed off and the investigation concluded by 30th September it still leaves the concern about what the investigation concludes. My interpretation of the sparse information we have about the CG issue is that an extremely serious allegation has been made about something and that is is proving difficult to resolve it. It must be serious because it has involved a board level committee, the resignation of two NEDs and the resignation of the previous auditor. It must be difficult to resolve because it's been dragging on for so long. I'm really concerned that the outcome of the investigation could have a severe negative effect on DX's business and suspect that the BOD has been doing everything it can to avert this but, unfortunately for them, they haven't been able to find a solution. So until the BOD comes out and provides convincing reasons why the CG issue isn't a problem or finds a way of circumventing the issue by taking DX private or merging it or something similar I'm going to continue thinking that things can only get worse.
Pianista... I have re-read the RNS with my afternoon coffee and custard cream!. I'm afraid I'm not breathing as easy as you.
The stand out statement from the RNS is "initial findings of the Inquiry and Investigation have now been reported to the Board. Having considered these findings and discussed them with the Company's Nominated Advisor, the Board has resolved to undertake some further work. "
Quite obvious that the nomad is not happy. Have the board been told to get their act together?
The RNS is deliberately vague because the situation is very uncertain. I think we have a rolling suck and see derogation as there are a lot of uncertainties.
Will the CG work be done to everyone's satisfaction Littlejohn and the Nomad.
Will it be done within the time frame.
Will Littlejohn sign off the accounts
Are directorate changes likely
Will the nomad stay on board as things continue
The AIM rug in my view could be pulled at any time depending on progress. If we have been given a derogation with a timeframe I think we would have been told. I don't think the AIM is sufficiently confident enough at the moment to grant a 3/4 month derogation.
No announcement of the depot openings as promised.
I think we are no further on. It really wouldn't surprise me if we get announcements right out of left field in the forthcoming weeks and I'm expecting the unexpected. Still M&A for me.
My two penn’orth…
On the face of it, we have a derogation from AIM and the audit of the accounts should be completed by 30 September. But the share suspension cannot be lifted until the accounts have been filed at Companies House, following approval at a shareholders’ meeting to be held perhaps in October (which should be interesting!).
So we’ve come a long way since mid-May, when we were given the shocking news that they were still without an auditor!
My only concern is over this mysterious, never-ending CG Inquiry. I can live with not knowing the gory details, as long as it doesn’t, as it did before, get in the way of the accounts. However, in this regard, we can take considerable comfort from the fact that the NOMAD, who must be fully au fait with the CG issue by now, will have approved the wording of the RNS, in particular the expectation expressed therein that the Inquiry and the audit should be completed by 30 September.
So, it's too soon to crack open the champagne, but we can at least breathe a little easier…
frogjumper you say:
Email: You didn't say you "weren't aware" of the company or company official being charged about accounting or governance issue (a typical politician statement), you said "to date the company has not broken any law" and I was merely wondering how you could know such a fact.
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frogjumper:
I know this as a fact until you tell me any fact you know disproving it
Email: You didn't say you "weren't aware" of the company or company official being charged about accounting or governance issue (a typical politician statement), you said "to date the company has not broken any law" and I was merely wondering how you could know such a fact.
frogjumper you said:
"to date the company has not broken any law" - Hasn't it? How can you be so sure? What inside information do you have? I'm not suggesting the company has broken any law but the certainty of your statement seems strange and unnecessary to me.
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frogjumper.... so far on present issues the company has not broken any law. I am not aware of the company or company official beeing charged about accounting or governance issues.... On what grounds you find this strange and unnecessary?
"to date the company has not broken any law" - Hasn't it? How can you be so sure? What inside information do you have? I'm not suggesting the company has broken any law but the certainty of your statement seems strange and unnecessary to me.
frogjumper - - no need to go about nitpicking - to date the company has not broken any law - no company individual has been charged with anything on the current issues. The RNS is a positive one that active solutions are being sought. It's a very unfortunate situation for us investors - but we are alive and fighting - still. It could have been much worse. The company are under focus from sides - they've got to be very careful about anything they release to the public domain
Well e-mail. As someone said we own the company. !. What info could possibly be used against the company ?. To have the situation shrouded in mystery as is hardly helps the company.!
The company is full of platitudes... it's plastered all over their website about their stringent corporate governance which is the responsibility of their chairman. CG has been a complete failure for over a year and there is by their their own admission more work to do.
You are right that it is a positive step that we have an auditor....but 5 months to get one ?
DX have already stated that there was the possibility the shares would be delisted today and they have addressed it in a vague roundabout way. It's appalling.
There are substantial executive failures at DX and no-one of any note has taken responsibility for it. A bit like the government. That's life. !!
Email: Your forecast that the new auditors would complete the audit quickly was unfounded, wasn't it?
"But why should the company release info which would not be definite" Isn't the point that DX has had ample opportunity to resolve this governance issue but hasn't? It's an internal investigation, unrelated to the auditor. They just look incompetent.
I understand the concerns about the RNS "lack of clarity".... But why should the company release info which would not be definite and could be used against the company's interests?... Yes, it's some huge mess they are in. But it's very positive they are actively trying to get out of it with the help of their current auditor.
A classic lesson in the art of how to say something, without actually saying anything. Of course, if any of the BOD were to lose their job, they could always try politics!!
Can't help but feel that there's something else going on in the background..
As per everyone's opinion, the RNS is extremely weak
Unhooked, Yes, they're treating their owners contemptuously.
Agreed. A very disappointing RNS. A complete lack of clarity that I am afraid to say is becoming the norm with DX.
An implied AIM extension with no confirmation.How long is it for ?. Etc. is there an agreed extension.?
CG inquiry started October 20, 19 months ago and only now do we get notice of findings. Far to long.
No answers and more questions. I am normally a pretty pragmatic person but I think this is very poor.
So much for the greater transparency Mr Meidar !!!
But….. we are where we are.!!
They've said the absolute minimum that they must to satisfy rules. It's the DX. way. The mystery continues until the next instalment in September, when we will probably still be left in the dark.
It seems to me that the corporate governance enquiry has been unable to demonstrate that the original concerns were unjustified and that the BOD is still scratching around for a solution to a serious problem.
"As clear as mud" - Exactly the phrase that popped into my mind when I read the RNS!
As clear as mud but we have the extension it seems. The intrigue continues. !!!!. It’s still a complete mess.