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Don’t understand why this is trading in low 40’s when an informal offer of 48.5p has been made. Thoughts?
So, big buy of Tuffnells depot x 15 surely this is big news and improves company value?
has to be near 50% to be had, possibly in a day...
gla.
Alas_Smith, I think you misunderstood, my msg was directed to someone else, not to you.
ojogger, I am not an employee of Gatemore. I am the Co Secretary for our tiny company in Mid Wales. I note that the company has failed to deliver its accounts and faces a technical suspension. In my experience, this is very bad for shareholders indeed and the longer that this goes on the greater the penalty that shareholders tend to suffer.
The last time that this happenned to me was in the matter of a company called Graphene Nanochem. The shares were re-listed for a couple of days (and I took opportunity to sell for a 90% loss) before being suspended again. The company was eventually de-listed. I filed complaint with FCA as the multiple RNS statements issued to detail an order here or there, approval of contract for good measure, new deployment in new field as a revenue arm, partnerships and agreements left right and centre in previous years did not generate a single penny by way of turnover and I concluded were totally bogus. What a surprise when the company managers were based in Malaysia that they simply failed to reply to correspondence and the Nomad eventually deserted them. Complaint was also made of the behaviour of the Nomad.
And, although this should not be as ghastly a scenario, my hunch is that as DX have lost small accounts such as mine, others to my certain knowledge for similar reason (stock evaporation (theft), failure to deliver within time scale, never returning goods that were purportedly not delivered, breakdown in the IT side, failing to integrate orders placed electronically with collection etc), I reckon that the figures are likely to be terrible. Either the Managers are looking to disguise things or wish to put as much as they can into the bad news, award themselves a tidy foundation for options (based on the eventual price that the MK falls to) and leech investors for cash to expand.
Of course, I am sceptical, but as the company is a very different beast from its original guise (serving solicitors with paperwork that required ink signatures) to parcels and freight courier, it is ill equipped and floundering.
I hope I am wrong, but it is my reading of the tea leaves and having never owned shares in this outfit, nor for that matter ever sold short, it is not one managed by persons that I trust or find trustworthy. Bon chance.
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I have had no reply to my email. Service has improved so that from a 30% failure to deliver in 24 hours has been reduced to failure to deliver to 28% and that still is hopeless. The final straw was that a consignment containing a case that was packed by me, that held 12 bottles of gin, each had been individually wrapped in bubble, placed on shredded pine for cushioning and in a double insulated box was dropped in a hub. The instruction to return to me was ignored and the contents disposed of has cost DX my account.
Oddly enough, the wine shipper that we use from time to time has also ditched DX. This is not a company to trust - far too much "stock evaporation", inquisitive employees demanding what is contained in sealed anonymous packages sent in bulk and a company to avoid. Our account has been transferred from a local office in Shrewsbury to a hub with a call centre in Leicestershire with an "account manager". I doubt they have any comprehension of geography - the closest dual carriageway from here is 22 miles - the first roundabout is 16 miles and traffic lights (aside from temporary ones) is 21 miles away, All in different counties.
As Mr Dunn either cannot read or is as haughty as a Marquis, there is no point whatever in seeking any reply to email. Best to walk away and take our tiny £70,000 contract with us. It is small beer but our Royal Mail account is that per week. I am at the point where I will block the IP address from DX to prevent their constant spewing of "motivational" junk.
Are you an employee of Gatemore?
From Liberum this morning:
DX has announced the postponement of the publication of its FY results, previously scheduled for 12 October. No new date has been set. DX’s auditor, Grant Thornton, has notified the group that it cannot meet the previously agreed audit timetable. This is due to Grant Thornton’s internal resource issues and the need to replace the Statutory Auditor. DX expects to report results in line with previous guidance. Trading in the new financial year to date has been in line with current market expectations. No material audit issues have been raised to date by Grant Thornton. Our view is that while this is disappointing and distracting, it does not alter the financial position, outlook or investment case for the group.
"Contrarian" view on why DX is misunderstood at the moment by the market:
•DX is a compelling contrarian pick – because the stock is misunderstood, it has underperformed compared to its peers, creating a very attractive entry point for contrarian investors. Liberum and finnCap have price targets of 50p and 57p respectively representing 65-90% upside from today
•Despite negative sector headlines around driver shortages and other Brexit- and covid-related supply chain disruptions, DX is well positioned to continue to grow margins and profit, particularly in its IDW, B2B freight business, in which it is a dominant player gaining market share
•Driver shortages are not materially impacting DX’s ability to deliver due to its long-term focus on attracting, training, and retaining drivers, and the specialist markets it operates in
•As a result, the unique pool of DX drivers serves to further cement its leadership position in the IDW market during this time of driver shortages and positions it to further capitalise on higher volumes
•As a read across from Royal Mail results, the trend for higher UK parcel deliveries reflects a permanent shift towards more online shopping post pandemic and domestic deliveries remain up around a third on pre-COVID levels. Higher costs can be absorbed and H2 margins are expected to be higher than H1
•finnCap noted this positive read across to DX from Royal Mail: “DX is able to maintain medium term growth through margin expansion and market share gains despite tougher labour market and inflationary pressures for competitors”
•Larger groups like DX are clearly better placed to take advantage of higher volumes and absorb the well published labour challenges in the market today, and in the case of DX, outperform given its deep pool of employed specialist drivers
All views expressed are my own. I am an Analyst at Gatemore Capital Management. Gatemore, its affiliates and clients may, as at the date of publication, have a long or short position in the securities covered in this document. We intend to continue trading in these securities and may at any time be long, short or neutral these securities (or any other securities of the same issuer) or any related securities, regardless of the position or views expressed in this document. Gatemore currently controls a 20.15% stake in DX Group.
I finally lost my temper with DX and dropped a line to the Company Secretary. The immediate problem was resolved in that the Heathrow depot finally picked up a consignment that they had taken 10 days not to collect and it was returned to us in Wales.
This was then sent on a pre-noon service and arrived within the deadline. I suspect that this had more to do with the Co. Secretary taking an interest, tracking in place by the Shrewsbury General Manager the Heathrow General Manager and their Customer Services representative assigned to maintain the peace with me.
What has not been addressed is the software interface to trigger collections, the correct labelling applied for each item or the matter of mis-routed packages. Since I am assured that Lloyd Dunn, the CEO is currently on holiday, I will follow this up in 2 weeks time for an explanation.
DX had a fabulous reputation in the late 1970's as THE contractor to use for correspondence between Solicitors practices in preference to Royal Mail. Having expanded to be a parcel carrier I had hoped for a service as a minimum equal to that from RM. It is not and, now that RM have tinkered with their software, RM are far better. At least I know that on average 3% of everything sent via Royal Mail will be delayed. With DX, it is 30% and that is unacceptable.
There are many things that DX get right but until the major issue of mis-routed parcels is resolved this punter will not be using DX willingly.
I will update this board once I have the dignity of response from Mr Dunn.
I have still not had the courtesy of reply, despite knowing that my email has been received at their IP address. I will drop anothr note to the company.
As at Friday, I had not the courtesy of reply. I had hoped, at least for a holding email
Thanks, Alas.... I will keep and eye here if you copy here any response... My investing involves other people. Giving you my contact email would compel me to share any communications with them, which is not something I always like to do....
The domain referred to for an email address is a building that was purchased in 2014 and transformed into offices for our company. It is huge - over 6,000 sq ft. Downstairs has become our HQ and upstairs a 3,000 sq ft apartment which we have for any visitors and our children when they come to stay with any friends and don't want to stay at home.
I will do so next week. I am doubtful if I receive reply, however, if you would care to drop me a message with your email address, I will gladly forward any response. angus@mahk.uk
Alas,
Maybe you should sent copy of your post directly to the DX Ceo... and paste the answer right here... As a very long standing shareholder I am very concerned by what you say
Well, if it is of any consolation, my company switched to DX last year as our usual provider was re-locating and needed to fit out very large premises and unable to rent alternative space while commissioning work was undertaken. DX had been wooing us for the last 3 years and were commissioned for the work.
We will not be using DX again. Their "next day" service is at best viable for 70% of packages, instances of breakages and "stock evaporation" have soared and their booking system is terrible. When we have large orders that need to be collected, invariably a van of insufficient size is sent and staff turnover is high. Staff are invariably inquisitive on the nature of our work which is impertinence. Our local manager is aware of the issues, things have been escalated every couple of weeks and is now managed from somewhere in Leicestershire. Not a lot of good to a rural part of Mid Wales. And while a holding email to say that managers are aware of the issues and implementing improvements during this summer, that is too little and too late.
So.... although there might be decent enough revenues flowing through the company, the service is atrocious, with 30% of packages mis routed (including those to the same address). Critical items scheduled for a timed next day delivery is shocking.
Good luck to anyone owning shares in this outfit. I wonder how many other enterprises are in the same boat as us.
On the back of great revenues, this is slowly creeping up. Still massively undervalued
£329 million in revenue. 300 increase thier fleet of vehicles . This must be working towards a take over target for the big boys
I am very surprised these have drifted lower. Looking at the fundamentals 40p is a bare minimum target imo.
There is a company sharesave scheme out in January
very quiet on this bb compared to other share bb, but this has been a steady riser since purchased at 0.18p
Will DX be doing any Fund raising in the near future