Member Info for Frogjumper

Ports: "we'll keep ploughing along" I guess there was once a very large market for plough horses but it declined when the tractor was invented! :-) I'm sure that DX has been doing everything it can to extend the document exchange and mail markets.

Ports: It's declining because people don't send anything by post anymore. That's just the way it is and is the reason why DX has desperately been trying to expand its express and freight businesses.

I don't understand why you say "although the fall in DX exchange/Mail is disappointing" when the report says "revenue at Document Exchange and Mail, continued to trend downwards *as expected*". Document Exchange is primarily a mail service and mail volumes are falling everywhere, even in the legal sector. The only thing that should disappoint is if the decline is higher than expected.

ATPM: Running separate trunks from West Midlands to Plymouth (as a hypothetical example) might look like bad management but if, say, the express stuff (including exchange) needs to be in Plymouth before the IDW freight running separate trunks might be the only way of doing it. Otherwise the service with the later service times is dictating the delivery times for the services that need earlier delivery (exchange is pre 9am if not earlier). Trying to force express and freight together is what led to the demise of the previous management team.

ATPM: I doubt they even use the same trunking network as many of the depots aren't colocated.

ATPM: The flaw in your argument is that exchange can't or shouldn't piggy back on the freight network. They're two very different things.

I think a major question faced by the new board is how long they continue with the document exchange business. Although DX announced the separation of the exchange and express networks I suspect this applies only to the delivery and that the two activities share depots and trunking networks. When the document exchange volumes decline to the point that the business is no longer viable DX will be faced with the decision to close both their exchange and exchange businesses because neither is viable without the other. Just my speculation!

I've never believed that the growth strategy for DX Express is anything more than unsubstantiated positivity. Having lost the passport contract they have to say something that might support the share price. The express market is very mature with substantial competition and it's not possible for a smallish operator like DX to develop a business that sets itself aside from the rest. It's almost certainly the case that all DX is doing is recycling business that it's previous lost or given up.

Hello ATPM, thank you for the very useful insight. I hope it's right!

Actually, I wonder if Paul Ibbetson would make a good CEO. He has the necessary experience in freight and makes a good impression on meeting.

Ports: I really do think you underestimate the challenges of running the freight business. A lot of people have burned their fingers thinking it's the same as any other logistics or express business, but it's not. Nightfreight was a wreck before DX bought it and continued to be until Lloyd's arrival. It's a specialist business that requires specialist knowledge that Nightfreight didn't find and neither did DX until Lloyd turned up.

Lloyd's Snr's departure was what I've been fearing all along. Of course, it might not be related to the CG issue. DX was wrong to buy Nightfreight but right to bring in Lloyd to turn it around because he's proven his ability in that sector. I think he's one of very few people who understand that market. Let's hope DX can find someone similar because otherwise ........ "We're doomed I tell you, doomed!"

I can't imagine Lloyd Jnr will be around for long.

I suspect that in the current economic conditions DX would have found it impossible to find financing to take it private.

Alas, please read this again and then explain to us what you mean: "A rapid rise in the share price prior to suspension where there are rumours that managers are at the edge of the rules for listing. This is usually because in the event of a long suspension a return to trading will mark the price down sharply."

Even though I agree that DX's handling of the corporate governance issue has been abysmal I do believe that this is a business with a clear strategic goal and the ability to execute its plans. History demonstrates that the business leadership understands its market. I would therefore regard any large fall in the share price as a clear signal to buy.

Ports: A merger between Tuffnells and DX would appear to make sense on some levels. I imagine the CMA would take a long, hard look at it before approving it, though, because the merger would remove a lot of competition from the IDW sector. Although you could argue that if profits are already as high as Tuffnells is reporting then there's already insufficient competition.

Sister: "Internal promotions are good in my opinion" Normally true, but in my experience many sales people are individualists and are more effective selling than managing sales people.

"Internal promotion which is a good thing" i think I'd rather have had a recruit from a competitor who could have brought some customers across.

"Looks like we have a new sales director for DX freight." Sales is a merry-go-round.