Member Info for Sisteract

Thanks for those replies which are helpful. I was fully aware of Gatemore's role in the appointment of the directors in 2017 which is one of the reasons why I am concerned at the obvious deterioration in the relationship which has culminated in the present situation. I didn't really like Gatemore complaining about the share price. Of course it is disappointing that it has done nothing last year but it is hardly the directors fault that it did nothing in the year before the governance issue. They have expanded the business , achieved profitability and by Gatemore's own admission done a good job. So Gatemore praise the directors for what they have done and what the projections are and then indicate they want to review the plans that justify/ support those forward projections and effectively say we don't trust you. It doesn't make any sense at all to me. Ultimately, though I'm not comfortable with a interventionist influence on the board so I'll probably sell when I can unless there is some news that changes my mind. Good Luck to all.

The problem for this company now is that they are now in a increasingly saturated market. It seems every man and his dog is setting up car/cash prize giveaway business. The successful small players have driven their business through social media and BOTB are simply to late the party. They have nothing unique to offer and the competition will only get stronger and customer acquisition costs will only go up.

Sorry to keep banging on about Gatemore. Does anyone else have any view on their strategy as I can't make my mind up whether to sell when the share suspension ends.

The main thing that concerns me I that Gatemore are a interventionist fund and are not shy in writing to companies when things are not going their way. They'e done it a few times. I wouldn't want Gatemore to be the puppet master of DX but that seems to be the way it is going.
According to Gatemore letter to DX:
As a director of the Company, Mr. Meidar will pursue the following priorities on appointment to the board will be:
1. promote significantly improved and proper governance standards;
2. push for the resolution of any material issues identified by the internal investigation, the internal inquiry, or Grant Thornton, in each case with the necessary degree of urgency;
3. meaningfully improve DX's investor communications and transparency; and
4. seek ways to achieve full value for all shareholders, including through exploring strategic alternatives.

Well he has been post now 5 weeks and has done nothing to improve point 3 as they all well know that explaining the corporate governance issues would along way to allay shareholder worries.

The time this is taking also worries me ( months) which makes me fearful it is more serious that they are letting on.

I can understand how some think having them on the board is a good thing because they think Gatemore interests are aligned with ours. I'd welcome any informed thoughts about Gatemore's strategy and its implication going forward because it strikes me that if Gatemore's aims and objectives are not aligned with the Directors they can cause trouble at any point down the line.

Really amazed where this share price is.There is nothing like being out of favour. But I really want to know what they are doing with the cash they are sat on

"also speculations about gatemore are not helpful..."

e-mail. I thought share discussions were about giving opinions, speculating and commenting on what was going on in the business. No one knows what is going to happen, but everyone is entitled to give comments and I would find all speculations/comments helpful whether they be similar in nature or totally different.

I would suggest you give a great deal of thought to what Gatemore are doing: ie
Why did they feel the need to effectively humiliate the directors in public. ?
Why did they demand a seat on the board. ?
Why did they instigate a review of strategy in capital allocation and expansion.?
Why have they been complicit in still keeping a lid on the corporate governance issue.?

What comes out of Meidars Gatemore review will dictate what DX are doing moving forward and it will undoubtedly affect the performance of your investment.

With all due respect I'd have thought comment and speculation about Gatemores actions will be more than helpful.

If we are to see trading again early Feb I think we should see some communication this week that the AR will be published. I hope we see a spike on that and if we get a trading update. If we do I think I will sell. The pulling of the AR on the day it was to be published still rankles with me. These things take weeks to be prepared so it must have been agreed and finished and then it's pulled on the day. Im also not comfortable with Gatemore being on the board. As soon as Dx are profitable Gatemore want to stick their oar in and throw their weight around so as another poster said it won't be the same company I invested in.I worry we may be subject of a bit of stitch up at some point with Gatemore involved. If faith is lost in the directors and the plan moving forward in uncertain then there is only one answer really. For me anyway.

It was a welcome RNS last week notifying the new depot openings. Happy they are in the more profitable freight division. I wonder if it will all come together in early Feb, Trading update last year on the 1 st Feb shares trading again etc, etc.

Can't really get my head round the delays. This was from financial year ending 3 July /21, it was an issue Gatemore knew about before we did and we have known of problems for nearly three months now and its still not sorted out. Completely inept. !!

Short Term I think they will find away forward. After all Lloyd owns 10% of the company and it is in his interests although he is already pretty wealthy. Long Term I'm not so sure.

Happy New Year to all.
It's going to be strange seeing the shares suspended tomorrow. Hopefully it wont be to long before the Annual Report is ready and Meidars review can start. Like other posters have suggested there must be some discord between the stakeholders. Lloyd wants to expand and be the best and Meidar wants more focus on shareholder return. I for one am getting a bit nervous as I am struggling to see a harmonious way forward for such differing views.

Looks like a 1m buy caused the spike. Merry Christmas all.

I'll support your application Pianista. !!.
It's interesting that Meidar has acted so quickly to instigate a review of certain aspects of the business but not so quickly in making public the corporate governance issues that have caused the delay in the production of the Annual Report and the crashing of the SP.
What we have here in my opinion is a completely failure of the Non Execs prior to Meidar and the Chairman to fulfil the role for which they are paid.
The logistics world and investment world has changed a lot in the last thirty years or so. I wonder if we might need some younger blood fulfilling these roles with no disrespect to the current incumbents.

Yeah that's just about where I am. It looks like we've just got to wait for the fog to clear. It seems the markets are pretty blasé about it.

I think we can assume that Gatemore have some support from the other institutional shareholders who are now effectively calling the shots. It's pretty obvious they don't think the proposed strategy will enhance shareholder value in the medium term. After all the share performance this calendar year has been poor. I'm not generally in favour of money men calling the shots and I don't think that Lloyd and his team will be. I think a battle will be taking place in the boardroom. I hope a compromise can be reached and the existing team stay in place after they have done the hard work and got us to this point. What do you think Ports ?

An interesting point Portswigger. I hadn't really thought about that but I can see where you are coming from. DX want to expand at pace so it would certainly help in that way. I'm not sure though as DX issues seem to be in staffing and if they can't get drivers they can't just magically produce them if there is a shortage. But they did mention acquisitions in a recent update so if that is active a fund raise could be a distinct possibility and January/February would be the ideal time to do it with the share price is at these levels. If it is you can be sure Gatemore are in the thick of things.

Ever since I have been a shareholder DX have never announced a contract and it hasn't seem to of been something they have done a lot of so maybe the euronics announcement it is a welcome change of transparency with the Gatemore Guy as Non Exec.

Some fair comments there. The directors approach seem to be " there is a serious problem within the business and we are not going to tell you what it is". What an appalling attitude.

Based on the information in Pauls video, the share should be doing farebeater than it is now never mind the next couple of years. By any method of measurement it is substantially undervalued and the investment case couldn't be much stronger but that means nothing.When you are not flavour of the month or attracting interest the SP falls.
What are the directors doing to act in the best interests of shareholders.
What are they doing with a cash pile that is sat doing nothing?. Why are they not buying shares. ?

Yes

Agreed Ports. I wonder how the other II's are viewing this development. Gatemore pointed out the lack of transparency in their letter but they should now be fully conversant with the detail so let's see if there is a bit more detail to follow. I fear not... and the lowly Pi's are destined to continue to stand on their tip toes to try and get a peak through the windows

DX have given way . I see it as good news for shareholders but I think there will be more to come out in the wash.

I think the reappointment of Grant Thornton as Auditors is up for approval at the AGM. Gatemore are not happy with GT as they said in letter. I hope a few olive branches have been offered and a few things in the background have been smoothed over. Any further delay in the AGM would not be welcome by the markets. This pothole in the road really should have been dealt with by now... it's obviously been going on for months and it's not right that DX are still keeping their owners in the dark. !