Member Info for Parcelsman

I fully agree Ports. Everyone has every right to make their own choice as to what is right for them. I think a price of 48.5p is personally on the low side for DX but my holding now amounts to over 6 figures and therefore I would argue my decision to accept this offer is actually the opposite of greed. I could get greedy but the amount of profit in monetary terms for me personally is now one I am happy with. Lloyd senior has far more invested than all of us and at his age perhaps he wants to enjoy the fruits of his labour and who can blame him. Decisions on whether to sell or not will depend on how much skin you have in the game and your personal circumstances and no one should judge another’s decision on this.

Https://www.telegraph.co.uk/business/2023/06/09/british-delivery-giant-tuffnells-administration-jobs/

I am hearing Tuffnells are in trouble and it seems from the turnaround in the DX share price this afternoon that others are hearing the same thing.

Thanks for your insight Portswigger. I agree the freight growth is good but there are reasons behind this. The main carriers have been actively looking to reduce the freight they carry as it does not go through their automated hubs and as such there is a cost in sorting these items for them. The main carriers now all surcharge these items where as in the past they did not. If you look at the parcel freight market there are less carriers that are competing for this business with DX, I would suggest only really companies like Tuffnells and Arrow Express actively want this type of business which could explain some of the reasons behind the growth in this area. DX should be able to target Tuffnells business based on their previous ownership. Hopefully the SP will recover in the next few weeks back to the mid 30's before moving over 40p by year end.

Yes I would agree, more likely to sell to a private equity than a buy out by one of the major players at this time. It's frustrating that the share price has dropped again this morning. I guess my idea of a quick buck has gone for the time being and I will be here for the long haul now. Does anyone have any thoughts on whether or not DX are likely to pay a dividend in the near future or do you think that this is still sometime away?

I think the viability of DX being taken over by one of the big players at this stage is small. If you look at those big players DHL has not long taken over UK Mail and is still integrating them into its business, they also had all the pain of trying to integrate Securicor years ago which didn't end well. The same can be said of Fed Ex who are integrating TNT into theirs. UPS purchased Lynx 16 years ago to get a UK network so that satisfies there need as they are still more focussed on international. DPD have grown organically by huge amounts in the last 10 years and wouldn't need to purchase a rival. Hermes are the other carrier with large growth over the last 10 years based mainly around the 2 - 5 day delivery model. They have aspirations to move into the Express market so that maybe an option. The other interesting one is Yodel. They have typically made annual losses of around £30 million year in year out but I believe they have broke even this year. This has for years been a tax write off for the Barclay brothers but with one of them passing away recently and the other one well into his 80's it will be interesting to see how they progress. I personally don't see DX being sold for at least 2 - 3 years but that is just my view from working in parcels.

Hi All, I am new to all of this but did decide late last year to invest in DX. My reasons for this were the fact that the results from the new management team were starting to take effect and having worked in parcels for over 25 years with the major companies in this sector I felt all the timings were coming together for some serious gains and whilst that still might be the case I do feel the results today are not as good as I would have expected. The company I work for who are one of the main players in the UK market and have just posted a year on year growth of over £500 million (over 40% growth) with profits to match. Therefore you do have to say that DX's growth of just over 7% overall and actually a 5% reduction in their express volumes still leave a lot of work to do. I think the fact that other carriers are reporting record levels of growth could have affected the share price today. DX's problem still lies in the fact the majority of their business is B2B when all the growth in this sector is in the B2C market.