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That is a possibility and I'm aware of the history. I temper that with the RNS in December which talked about Dividends and Share Buy Backs in the context of the AIM. We'll just have to wait.

It does cross my mind that DX are quite happy to delist from the Aim as they don't think it realises the value and they have no intention of relisting. That is the immediate problem. Get rid of that and they can spend as much time as they like sorting out the corporate governance /auditor issue and just pay late filing penalties. They could then focus on the MBO and there is always the possibility of doing that through a new company that could eventually be listed and offering that option to existing shareholders. Whatever they decide if there is agreement with all the institutional investors and Lloyd it is pretty much a done deal.

It's now approaching 5 months and as far as we know have no end to the corporate governance inquiry and in addition no notification of auditor appointment. So what is likely play out.
I think a sale of the company is highly unlikely as no one has any figures to sift through and the timescales are way to tight before a possible delist.

PE - Not for me. Margins are low,Profitability unpredictable in the express division. Visibility of future earning not crystal clear as I think the company lacks focus trying to be all things to all.
Substantial Investment required to increase market share.

MBO - My most likely scenario and they are trying to cobble together the finance.

Appointment of Auditors and Extension on Aim... We live in hope but I fear that is fading into the distance.

As I understand it there is a possibility of a 3 month extension if a business has been affected by Covid but it isn't automatic...it has to be applied for.

I admire your optimism but the evidence doesn't point to it. There has been no communication of the completion of the corporate governance investigation, no interims, no explanations. If an auditor can't be appointed in two months of negotiations you have to ask yourself if it will ever happen. A shocking way to treat it's shareholders.

I already have and got the bland answer that DX will make any announcements through the usual channels. We just have to wait.

We know that DX must have asked for and been granted an extension for accounts to July 21 submission by companies house to the end of June 22. As far as we know DX have breached Aim Rule 18. Penalties can be harsh for AIM rule breaches so it wouldn't surprise me if they asked for an extension and decided not to tell us. Despite Gatemore's and the DX directors reassurances earlier this year that these problems in the grand scheme of things was relatively minor they were either not being honest or had no real grasp of the seriousness of the situation.
DX have said nothing for two months. They are either keeping things from us or they have nothing to say. If it's the latter the boardroom must be in daily use trying cobble together some sort of strategy.I'm half expecting notification of a general meeting when they eventually put some plans forward.

I agree that a delist the favourite now but I think it is forced on them due to the governance issue.I actually think the resignation of the auditors was a shock to them. A delist may well have been something that was in the background if the listing on the AIM wasn't recognising the value butI do think that it is premature given DX's position in the company life cycle having just achieved reasonable profitability. There is actually plenty of experience on the board in running a PLC previously so I don't think the costs or compliance requirements are anything to do with this situation.

It could come anytime today. There is no requirement for it to be issued first thing.
DX have not removed GT from their website as auditors yet but they have probably got more important things to worry about than updating their website.
I might give their nominated adviser finncap a call later if nothing is forthcoming.

I agree Deep. I read Sisters post and do have some some sympathy with the point raised. Sisters posts were intelligent and well thought out so hopefully she/he will return sometime..

If you read the RNS just before Christmas regarding the growth strategy and capital allocation when they knew a suspension was imminent it didn't really point towards a planned delisting .I have been thinking that when Meidar was appointed to the board he became more aware of the detail of the Corporate governance/auditor issue and it was more serious than he first thought. I don't think at that time they remotely considered the possibility that the shares could be delisted and that it would be over three months before they could begin the review. I think they have been pushed into a time sensitive difficult situation and they are trying extract the value as best they can.

Hi Frogjumper, Yes of course . Many possibilities exist. But if DX have gone against the advice of its' in-house head of legal Russell Deards then his position is pretty much untenable and as far as we know he is still there. Potential breaches of law is as serious as it gets and can result in director disqualification. Although I'm not a 100% on auditor responsibilities I would of thought they would(GT) be duty bound to report any suspicions of that nature. In such a case it is totally negligent of the DX directors if they are not on top of the legalities.

I thought I would pop back and see what is going on with DX and the answer is of course....nothing.
The corporate governance issue still baffles me. No completed investigation as yet. GT write a very strong letter and DX still don't play ball. It should be remembered that DX have a qualified solicitor as head of legal so one would have thought they would be sure of their ground. DX say they have been negotiation for two months with potential auditors and yet so one has been appointed. Is this a smokescreen. ?

It's not possible for a full audit to be done in two months so what happens now. If Dx don't apply for an extension we can safely assume a delist is the way it's going and is the desired outcome. For a voluntary delist 75% are required to vote for it so I am sure there are plenty of II's investor discussions going on. If they don't get the backing they may just let it go to a involuntary delist to allow more time to decide strategy.The question then is do the II's stay on board or sell on the OTC

There are other options that may be happening in the background driven by Gatemore but three months is hardly enough time to sort anything out especially with no audited results for year ending July 2021. DX have projected 50M cumulative free cashflow over the next three years so its an attractive proposition for someone with deep pockets.

I think getting into discussions about interpretations and trying to prove people wrong in their opinions is my cue to leave this discussion board. Good Luck Everyone. Ports.

Pianista. DX have withheld information from the auditors. In GT's letter it states they have been given insufficient access to relevant information and documents. Whether we agree on the role of privilege or not ,Dx obviously have something to hide. Your second point is very valid.

I'm not with you on that one P although I am on most things.

"Privilege entitles a party (or their successor in title) to withhold evidence from production to a third party or the court. This evidence may be either written or oral."

Why ?

I am still concerned about GT's reference to privilege in their letter to DX. It is patently obvious that DX are withholding or not coming clean regarding the corporate governance issue. If they maintain that stance and it seems likely they are, then it is likely they are going to have trouble appointing a new auditor.We don't know how this will play out but I personally don't think it will be plain sailing. The talk of going private or a PE backed MBO is natural but I don't currently see how that works in the big picture of Lloyds desire to the best...but he isn't calling the shots now.

I think we need to remind ourselves of the facts.

The corporate governance enquiry has not yet been completed so it is highly unlikely that Auditors will be appointed until that has been completed. There must be some legal complexities about that purely indicated by the length of time it is taking. There could be anyone of a number of things going on behind the scenes and DX continue to date to be less than forthcoming. One thing is certain though... the suspension will continue for a while.

Monty... You are entitled to your opinion but if your theory is correct then DX would have lied in their RNS's and GT would have sent a totally different letter. I'm comfortable it is corporate governance issue.

However, the continued lack of information and failure so far to appoint another auditor to date
doesn't give much confidence moving forward. And the longer it stays like this the more I'm inclined to think there are other strategies at play rather than to replace the auditor and carry on as normal. Who knows though.

To some degree yes. But the vacancies are in the whole department not just Drivers. It's Freight that is underpinning and driving the business so its good to see vacancies but of course the problem is filling them. If it continues I wonder if we will some relaxation of the immigration criteria like they have done in the care sector. Mind you if the current situation escalates in Eastern Europe they'll be no shortage of labour wanting to head this way unfortunately.The downside is the economic uncertainty which has already started to slide.

Interesting that clipper are subject to an offer this morning.