Cobus Loots, CEO of Pan African Resources, on delivering sector-leading returns for shareholders. Watch the video here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
I suspect the market still hasn’t completely forgiven the company for the white-knuckle ride they put us through last year. Plus the new management has not yet been properly tested. Mainly, though, I think the market is awaiting the company’s own assessment of the outlook, due shortly, rather than just having to infer it from all the recent snippets of good news.
Another factor is that the company could soon launch another management incentive plan. The last grant was in April, to the CEO, which was arguably overgenerous then - threshold 30p, maximum payout at 40p – but certainly looks like it now, given the Tuffnell’s “windfall”. Incentives are generally a good thing, of course, but let’s hope the major shareholders (i.e. the institutions and Lloyd) have a moderating influence next time over the terms.
Very odd indeed!... with the last news the sp should have been churning towards 40p and instead - still stuck in the old 31p groove?... Something must be brewing - and it's not soup!
Portswigger.......Don't ruin my good mood from this mornings RNS with a bit of sense.!!!!
Absolutely Everton... a glass half full day. ! But you can bet your bottom dollar that the Dx directors will have in place a strategy to ensure they are well rewarded moving forward. I'm sure we'll hear details of that. Sometimes things are as good as they seem for a short period of time. I've had too many bites on thev bottom over the years on the AIM to realise it doesn't last long. But yes a good day.
Dx are currently in the 2nd year of a 20-25m investment programe... new hub at 12m + , Electric Vehicles 3m , Dividend ???
and tuffnells expenditure... that's alot of candy. Lets hope business is that good and CFO's pencil is pretty sharp.
Surely very occasionally things are in fact as good as they seem - with the very positive news flow that we have had, a share price still languishing 40% below the most pessimistic brokers’ forecast, a close to 5% yield, oodles of free cash flow, a clear strategy, and in my view, the probability that projections for next year, and the year after will be raised after today’s news, let alone after 22/23’s trading … definitely a glass half full day!
I think we will see something happening with the 32m odd outstanding share options in the forseable.DX directors have a history of feathering their own nests pretty well and I'm sure that strategy will continue. I'm not trying to pour cold water on the good news but things are never really as good as they seem and there will be substantial financial implications for DX taking on the remnants of Tuffnells. We can't argue with a a rising share price and postive sentiment but I'm not sure you'll need to be practising your cartwheels just yet sister. !
All round excellent news and would expect brokers to upgrade forecasts post July update...good to see DX back on top
Morning all
Despite the DX-IKEA partnership being old hat, it is nonetheless positive news all round and the dark and worrisome months of the share suspension a very distant past.
Add to the above that this is the highest SP in at least 3 years, the immediate future, at least, looks rather rosy hopefully with potential "cartwheels" to follow. : )
It will indeed be very interesting and important to see how DX cope with the extra 550 customers without sacrificing service quality or upsetting the balance of it's current structure.
Notwithstanding the extra depots which DX have also taken on, the other good news is that at least 250 jobs have been saved particularly in light of the current economic climate.
I'm keeping my fingers and toes crossed for a positive upcoming trading update, which I do anticipate, together with the announcement of the dividend.
Onwards...
Quite a task indeed and certainly a lot to take in from that RNS. Revenue will certainly get a big boost. I'm hoping that this section below means that they have maintained their price discipline and not compromised on their strategy for the sake of more revenue
"has taken on over 550 customers on mutually agreeable commercial terms. Maintaining high customer service levels remains a priority."
Intention to take on virtually half of Tuffnells depots which is quite a task with 500+ new customers.!!! Good Luck sorting all that out DX.!
It will be interesting to see how this affects sentiment together with the trading update. Undoubtedly positive. Hopefully we'll still get the dividend.
Fantastic news, if this doesn’t push the price what will…
If this hits 60p by Christmas I'll be doing cartwheels round DX's car park in Slough before booking my world cruise!!
This is old news first notified to the markets in October last year but it seems to have generated some slight positive setiment for a day or so atleast.. !
Love this lol
--- That's huge news!... A handful of partnerships at this level and we might well have double sp by Christmas -- something like 60p - IMO
...seems to have re-charged the share price. Highest this year I think.
Not strictly DX but interesting that the Brand and IP of Tuffnells have been bought by on-demand company shift. It seems that DX probably wasn't interested and didn't see the value but It remains to been if DX have any interest in the depots etc.
I don't think anyone is saying it's bad for business. It's just got to be carefully managed. If DX are deliverying say 150,000 + items a day and are logistically set up for that and suddenley you get an influx wanting say another 40K delivered you can't just say yeah.... stick em on the vans. !!
Don’t see how the largest competitor going bust could be bad for business. I believe DX will maintain their price discipline and win some of those customers based on service offering. Not a peep in the press about any potential buyers of Tuffnells so looks like that’s it
DX's best strategy is to take a long hard look at the freight that Tufnells has been carrying and try to take the volume that best matches its own capability whilst raising the price of current freight that is less attractive so that it goes elsewhere.
Interesting points raised in the last couple of posts.
Since Tuffnells administration was announced DX share price has done nothing. I agree that in normal circumstances having a competitor go bump is a good thing but the problem is the type of business . There is little lead time. Tuffnells customers will be wanting carriers to pick up the slack immediately, its a fast moving business and alternatives have to have the free resources to do so. It's in motortransport that some in the industry think Tuffnells is the tip of the iceberg. It's quite telling that Tufnells couldn't raise the funding.
It's good to be positive but I agree that too much business can be a bad thing especially if it can't be serviced properly.
Ports - I don’t see a problem with “overtrading”. It’s not as if they are recklessly chasing sales by, for example, extending credit terms, or reducing prices and cutting margins to the bone. If anything, it’s the opposite.
Moreover their bank balance is very healthy, so they won’t be running out of cash any time soon.
No, Tuffnell’s is a nice “problem” to have - give me too much business rather than too little any day!
It needs to be carefully managed, of course, but I’m sure they’re equal to it - let's see what they have to say about it in the next trading update, expected within the next month or so.
So when would be the likelihood of next sp moving news?
That's one way of looking at it Everton and it's only natural for DX's eyes to light up when one of your biggest competitors goes under but I think it creates a multitude of problems for DX. In the last available accounts Tuffnells turned over 178M year ending 2021 so there is a substantial amount of available business sat in front of them. We have no idea what spare capacity DX have and the possibility of overtrading exists which is one of the worst things that can be done in business.
DX have committed themselves financially with the growth plans including the new regional hub and planned dividend so I wonder what scope they within the existing financial and general resources to take advantage of the market opportunities that now exist. We have the right man at the top with freight experience but in my view its quite a test for him and the DX board.Is it beyond the realms of possibility that there may be a change to the capital allocation policy to (in the words of some chap who resides in the Kremlin) take into account the new realities ?
The administrators will be trying to extract some value from the bones of Tuffnells. From DX's perspective possibly complimentary depots on new leases with infrastructure and resources already in place but who knows who's floating around expressing an interest. It will be interesting to see how DX handle it.. but it's not easy.!!
Https://www.dxdelivery.com/service-updates
Good to see…” high volumes of new sales enquiries”
Well... certainly a statement of intent considering they already have a regional hub in willenhall some 50 miles a way. I think the upgrades to that are due for completion quite soon It also looks like they are buying this freehold so they seem pretty bullish. They have to be admired really and are obviously confident in their cash forecasts.