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We know exactly what is in the plans .£20-25m in the next three years approximately £7-8m per year on new depots, infrastructure, fleet etc. It has never been retracted. The 2 depots already opened this year and the five to open later this year as stated in the RNS today are obviously part of it.
The review of the growth strategy is being instigated and led by Meidar (Gatemore) and will only begin after the Annual Report is presented.
We know exactly what the plans are currently but we don't know how this may or may not change after Meidars Review.
Just to provide some balance: The board's direction since 2017 has been excellent, however, we don't know about their current plans.
In Nov, an RNS stated DX's intention to begin a 3-year £20-25m plan of capital investment. This was quickly retracted, presumably under the influence of Gatemore. We don't know what was in that plan, or whether this plan represented a deviation of what had made DX's turnaround so successful. We can only guess, but Gatemore are certainly laser focused on shareholder returns.
We'll there's a comment to stimulate some active debate LCP123.
DX was on its knees in 2017 operating in a low margin competitive business. Within four years the Directors have turned it round to profitability. Isn't there an argument for letting the Directors get on with it . "CIO and Portfolio's managers are many times smarter than the DX Board"... Not in running a transport and Logistics I don't think. Do you really think Dx would be where it is know without the experienced Transport people running it. If you have read the bios of the Directors you will see that they have a history of enhancing share holder value throughout their career and with DX.
Your post sums what I think about the Activist/interventionist funds .... they always think they know better. Let those who know what they are doing.... do it. !
I work for a hedge fund which amongst other things is an activist. The CIO and portfolio managers are many times smarter than the likes of the DX bod and have a much greater commercial understanding of what makes a successful and profitable business that can benefit shareholders. Never forget, the company is run for the economic benefit of its shareholders and no one else. If you want to make some money rather than be part of a social enterprise, then let them do their thing.
Yes, it has been well run to date. Absolutely. But I invest for a minimum of 2 years so I'm not fussed with short term volatility or one off problems. My issue really is with Gatemore and I ask myself :
Would I want a interventionist fund representation on the board of a company I invest in. ?
Would I want to invest in a company where this funds view is not aligned to the directors in expanding the business?
Would I want to invest in a company where one of its major external shareholders thinks it can flex its financial muscle at any time to affect strategy.
What is to stop them doing this in the future?
The answer for me is a resounding No. But I completely understand those with a different take on it.
Gatemore have done this a couple of times before and if you research it.. it hasn't proved beneficial.
Anyway tomorrow should be interesting.
I don't think this will be a question of getting out unscathed. The company is well run, for the most part. When the share price dipped after the delisting news, several directors stuck their hands in their pockets. So clearly they thought 21p was too cheap to ignore.
The drama is a distraction, but the underlying business is sound.
Agree with all that Ports. Two Non Execs going together with immediate effect.... I think it's a sign that Meidar is calling the shots. There is still no update re Annual Report perhaps we'll get some info tomorrow with the trading update but I won't hold my breath. Hoping for a good update and removal of share suspension soon in the hope I can get out relatively unscathed.
Bottom line for us is, suspension may be over soon, results to ponder over and make your revised investment decision. Any chat about what may have happened at DX is nothing but noise and we would await that info from the board.
On a plus side my shares in AJ Bell will start to look better as they are down as a 100% loss. (Which they may be in when suspension is over, but I dont think that will happen)
Cheers
As expected. The Non Execs were not doing their job. I think the chairman has done well to still be there has he is responsible for corporate governance. The important question though is who replaces them. Pleased Lloyd is still there. !
And 2 NEDs gone with immediate effect.
Without any further info, which is very frustrating, all we can do is speculate. Either, this was a normal departure, or possibly they are resigning in protest at something, or possibly implicated in the reason for the shares being delisted? Any other reasons?
Well, we're getting our trading update tomorrow.
A year ago today we got a trading update following the end of the 26 weeks to 2nd January. This year we do not even have audited accounts for the 12 months to 2nd July 2021. And not a word of substantive explanation. Really disappointing and to me, just as concerning.
Rajapack ?
Thank you for the reply. I look forward to hearing what they report back.
Fair comments Everton. I think there may be a strategy at play. There is nothing to gained by releasing any information now apart from appeasing the lowly private investor. The significant shareholders are all fully aware and that is all the matters really. If Dx are as busy as a few posters seem to hint at then releasing good news to the market in the current market sentiment will do nothing even if the shares weren't suspended. So it really doesn't matter. They could delay until sentiment changes ... who knows.
I'm not unduly worried but I do think that there may be something that affects the integrity of last years results but it doesn't affect financial projections. But it does seem to be taking an extraordinary length of time unless the audit is being redone. But the company really should be more transparent but that's the AIM for you. I take comfort that the Auditors haven't resigned like the Cake Box Fiasco.
I ordered a load of packaging for my business being delivered by DX freight so I'll be quizzing the guys later this week hopefully.
February tomorrow. Not a word of explanation from the company or any clue as to when the shares will return to trading. The longer this goes on the more pessimistic I become as to the nature and extent of the problems which they decline to reveal.
Trading update is usually early Feb and the interims early Mar. Half year has already ended (December). I suspect we will get a cascade of information at the same time. Hopefully along with that a firm trading statement indicating further significant growth which propels the share price into the 40s.
@email I am SW London and I see a lot more DX vans now than ever I used to.
I can't see any reason why they couldn't give us any form of update as its hardly going to affect the share price ???. is it a source of embarrassment.?
I would have probably sold as well ports. But it's born out of the continued corporate governance failures. Even now with the new non exec there is no transparency. Owners of the company are still kept in dark and we know no more now than we did three months ago about these failures. Is the audit having to be done again.? I notice there has been a vacancy for a divisional management accountant in Express .. I wonder if that has anything to do with it.... but the way I'm feeling I'm probably reading to much into it. But the silence is deafening.
to be honest I am quite excited at DX coming back from the dead... I have noticed quite a flurry of DX deliveries in South London - the most noticeable Boots, the chemist, while I was waiting for a prescription... I wouldn't be surprised if the share price is going to give us a pleasant "hello, nice to see you again"... Just a feeling though - as they would hot have spent all this time unless it was to smooth things over
Well Deep, thanks for those comments but I'm not sure I provide pearls of wisdom I just says things as I see them and if hat helps then great. I like chat boards where people give honest opinions and I get more from views that are different from mine as it helps making a rounded decision on the investment case. But I can't think of many boards like that, most descend into personal attacks on people with opposing views. Dx as far as I am concerned have done a good job apart from one problem that they are keeping close to their chest. If I had been able to sell I would of done but it would have based at least 75% on the wider economic picture and outlook as I see it. While I'm involved I'll still post.
Thank you for your guidance over the last few months Ports. Learned a lot which I believe will hold me in good sted.
All the best, but I hope you will continue to post your pearls of wisdom for folk like me.
Lol!
Unfortunately, the pots not big enough to keep me in the manner that I'd like to be accustomed, email. So's it's s break of unknown length until the fog clears. !
enjoy your retirement, Ports...