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I should Imagine Lloyds pretty happy with Gatemore interference... his gains after his share purchase on Thursday stand at just over 30K. Its a hard life.!!!
Something's pushing the share price in the right direction.
Sounds like to me the DX board are getting a wee bit complacent - if a 20% shareholder is being publicly critical you can bet they are fuming. I'd definitely vote for the actions proposed!
Makes you wonder what the DX Non Execs have been up to. It's their job to keep an eye on things and hold the management to account.
Two of them are past the legal requirement age, maybe we'll see some changes. !
Anyways markets seem to be positively reacting to today news.
I like the optimistic scenario you're painting, Portswigger, it makes sense to me. Fingers crossed eh?
Agreed Unhooked. A conscious decision to make it public is not ideal but it does increase the pressure on DX substantially but I'm sure Gatemore would be well aware of the implications. If it had been kept quiet and a scenario came to pass that the managing partner of Gatemore was appointed to the board and it was released via an RNS all sorts of rumours would be flying around.
We now know that the institutional shareholders are not happy and and are taking action. People of influence are now in the corner of the private investor. !
Gatemore Capital say that they "have repeatedly engaged with the Board in private over these governance and communications issues during the past year. Nonetheless, we continue to be surprised and disappointed by its inaction around the issues highlighted above and find ourselves stunned by the gross mismanagement and ambiguity of last week's announcement".
Looks like a public spat might be the only way to get DX to wise up and listen.
Maybe some good will come of it but at first sight I'm not convinced a public spat with a major shareholder is what we want to hear.
P. I also think the communication has generally been pretty good apart from addressing the obvious headwinds recently more directly but obviously it's not been good enough for Gatemore. The news today I generally think is good for share holders but thinking about it a bit more I do think Gatemore have sounded out the other ii's.
To make a demand that their managing partner is appointed to the board is dramatic and must have the support of Canacord who have a similar shareholding. I wonder what they are thinking and what their position is.Lombard are currently down about 25% -30% so they won't be feeling that great.
It wouldn't surprise me if we do get some greater clarity this week on the problems but it seems Dx have been prepared to deal with the institutions in private about the governance issues but not in public. For Gatemore to come out with todays letter in public they are basically saying DX have not dealt with the matter in the right way and they will no longer accept any lack of transparency.
Good move by Gatemore.
I don't see they are in a position to accuse Grant Thornton of missteps without knowing what has gone on. The auditor can't report before the directors give them the financial statements to comment on. That hasn't happened here, it is not the auditor's timetable. They can't do the audit if the management haven't given them the information, or if the management are saying we have everything you need except we need to finish an investigation into x and it is so material the financial position can not be determined with out it. Perhaps it is the auditors who uncovered the issue when obtaining evidence of the reliance they can place on systems and internal control prior to the YE. Perhaps also it is their unwillingness to sign off on the outcome of the company's investigation so far that is driving the work further to avoid a qualified opinion & this may well be in the best interest of shareholders depending on what it is that is up the creek.
Anyway, good news Gatemore are active & possibly good news if their man was on the BoD as as there has been a unmonitored failing somewhere in the existing set up.
Most would agree that last week’s RNS was unnecessarily alarmist: people do panic at the word “suspension”, even when it’s due to a technicality, and likely to be short-lived.
(Personally, as a LTH, and knowing how sound the underlying business is, I managed to keep my head: in fact, rather than dash for the exit, I topped up).
Of course the fact that the RNS followed hard on the heels of a couple of other slightly worrying RNSs, in relation to delays to the Annual Report, didn’t help. However, I think generally communication from the company has been good, and that it would be unfair to lay the failure of the market to respond to no less than five profit upgrades in FY 21 at the company’s door.
Nevertheless, this latest intervention won’t be good news for those involved in the company’s corporate governance, but it’s not bad news for shareholders: it’s clear that Gatemore are impatient to see an, at least, doubling of the SP from current levels.
Gun to the head !!!. Presumably Gatemore will have been in touch with the other institutional Investors behind the scenes to gauge sentiment.
Wow,Wow,Wow....... sort it out by Friday or we'll consider calling a shareholder meeting. The DX board will be feeling the heat. An interesting week coming...
It seems then that Gatemore ave been fully aware of these governance issues for sometime as they have been in regular communication about it with DX. It' concerning Gatemore are losing faith in the Directors of the company but not it seems to the extent that they would reduce their holding as they see the future value. A letter like that is pretty strong and is effectively saying sort yourselves out. It's not good news and is really a shot across the bows. I should imagine some interesting discussions are about to take place. My view is that Dx have been solely concerned about driving the substantial growth and have lost sight of the bigger picture of corporate governance.
Wow! Strap yourselves in...
Great letter from Gatemore calling for action....makes some sensible points and underlines the value here...any strategic review would likely include finding a buyer...shares should rally on this...
https://www.prnewswire.com/news-releases/letter-from-gatemore-capital-management-llp-to-dx-group-plc-301432615.html