marktime1231
05 Dec 2019
So DX is turning around, still A snippet today from DPD the leading parcel delivery company, who say volume is up 13% year-on-year thanks to an extra busy Black Friday event which now seems to run for about 10 days. Judging by the number of Parcleforce juggernauts thundering past recently the effect has been widespread, good news for DX and Connect if so.
marktime1231
28 Nov 2019
So DX is turning around, still Trading statement from Ron Series at the AGM today, no surprise the sp has hardly moved "_Group trading in the first four months of the new financial year shows a stepped improvement over the same period last year. This reflects the structural organisational and operational changes made in both divisions, DX Express and DX Freight, over the last 18 months, and in particular the continuing performance improvement at DX Freight. Management’s attention is now focused on sales and operational improvements across all areas of activity with the Group’s ongoing transformation being supported by a major £10m investment programme covering IT systems, mechanisation, and site improvements. _ DX’s trading is seasonally weighted towards the second half of the financial year, and taking this into account, the Board believes that the Group is well-positioned for continuing progress and to meet its targets for the current financial year. We expect to report on interim results in early March."
marktime1231
20 Nov 2019
So DX is turning around, still Well well. Sun Capital / European Partners in with a bid of £300M+ for Clipper, successfully combining fulfilment logistics delivery and returns for John Lewis etc. The bid sounds cheap actually and not exactly warmly welcomed by Clipper which is 25% owned by founder Steve Parkin. So does that signal the start of a round of consolidation in European logistics? Can’t spot immediate synergy between Clipper and other businesses in the Sun portfolio which is a diverse range of mid caps making and selling consumer durables etc. What could it mean for DX or Tuffnells?
marktime1231
06 Nov 2019
So DX is turning around, still Major developments at Connect with regard to Tuffnells, now we know why the CNCT share price has been slipping since the weekend. CEO Opdeedoodah gone etc, a (nother) strategic review of Tuffnells announced on the back of even worse results. Smiths News made a better operating profit of £43.6M on declining revenues of £1,303M, while Tufnells made an even worse operating loss of £14.1M on declining revenues of £165M. A £40M+ write off of intangibles AND cutting the tangible asset value of its remaining 9 freehold properties which it now says it hopes to sell-and-leaseback by Feb 2020. The effect of which is to tip the whole group into loss, but a 1p dividend thanks to postiive cash flow of c. £10M. The case for a DX-Tuffnells mergers even stronger, or might there be interest from another quarter? Mike Holt a non-exec has been promoted to Tuffnells exec chairman, his recent background was the turnaround and sale of ANC to FedEx.
piw
09 Oct 2019
DX Group H1 19 results webcast DX. Group’s Ron Series, Executive Chairman, Lloyd Dunn, CEO & David Mulligan, CFO give a comprehensive outline of DX (Group). This management joined from 2017. Here, they summarise what they’ve achieved, their strategy and the outlook. piworld.co.uk DX Group (DX) FY19 webcast October 2019 By Ron Series, Executive Chairman, Lloyd Dunn, CEO & David Mulligan, CFO A comprehensive outline of DX Group by the management, who joined from 2017, summarisin
marktime1231
25 Sep 2019
So DX is turning around, still To clarify I sold that part of my DX stake speculatively added to my income portfolio when it became clear a return to dividend was not going to be soon. For a 5% capital gain. To be reinvested in something cheap and paying a solid income stream, like BP. The larger DX stake in my recovery portfolio is intact perched at c. -15%. And to finish my musings of yesterday, if DX and Connect did fancy a transfer of Tuffnells … even at zero headline price … DX would be taking on some of the net debt at Connect attributable to Tuffnells eg £20M or so in exchange for the unrealised value in its remaining property interests. It is the stated priority of Connect to reduce group debt, so this would be an attractive option on top of its recent £10M property transaction, and the offloading of a business unit racking up about £10M pa trading losses. The appeal to DX … adding up to £80M revenues … depends on whether it could turn Tuffnells around again to making a 10% profit or so. It makes sense to me, if DX could offload some of the surplus Tuffnells infrastructure to reduce the acquired debt. And a cost cutting programme to extract efficiency savings. I would have thought DX is in good enough shape now to arrange the commercial finance required, and it surely has the management team best able to execute. That scenario remains in my view a win win. Connect might even be a bigger short term winner than DX, which is fine because I have a large recovery stake there too even deeper in the red. This is of course all personal speculation but I am not the only one thinking along these lines surely.
marktime1231
24 Sep 2019
So DX is turning around, still SO yes DX able to report positive EBITDA but after accountancy jiggery the net results is still a loss, just, of 0.2p per share or was it 0.4p. The real news is there has been a terrific improvement in sales and profitability at the freight business, echoing the turnaround Series and Dunn were feted as having achieved previously at Tuffnells. And positive net cash flow overall despite significant investment. Debt is not a problem. The disappointment is that significant further investment is still said to be required to make DX a long term profitable prospect. That means cash will be used to keep turning the business around rather than make a shareholder return. The prospect of a return to a dividend anytime soon has diminished. I wonder how else the turnaround management and major stakeholders will realise the value in their investment. Gatemore rejection of Menzies does not mean a scale tie up somewhere else, of the Freight business at least, is off the table. Tuffnells an obvious candidate, where Connect have undone the turnaround and the rest of its business delivering newspapers seems to be dragged to a loss by the underperforming freight segment. Why not put DX Freight and Tuffnells together if not the whole of DX and Connect? Connect management say they are determined to invest in Tuffnells to make it long term profitable, but trade is falling and so the division is still making losses big enought to drag the whole group down. Connect handing over Tuffnells to DX for next to nothing would immediately remove £10M operating losses from the Connect bottom line, and give DX the opportunity to add freight revenues of £80M to its existing £160M business … with the obvious scope to turn it around (again), integrate operations with scope for big savings, return it to a 10% profit margin again. Win win. Connect has already extracted £10M property value from 6 key Tuffnells sites with a leaseback deal, and may not attach much net asset value to the rest which it has struggled to get favourable leaseback offers for. Nevertheless DX now appears to be sound on its own and management have a positive outlook without being too specific where further sales or profit will come from. The sp should continue its rise to 20p this year regardless, but I still fancy this up to 40p in the next couple of years with a return to dividend and speculative options for how Gatemore will exit its investment.
marktime1231
16 Sep 2019
So DX is turning around, still No rns to explain the big trades on Friday. Does not make sense. Not complaining though. Good volumes today and the price kicking up like a can can dancer pushing 14p
marktime1231
14 Sep 2019
So DX is turning around, still Serious volumes traded on Friday, two big chunks 12.5 million and 1 million at 12.18p … stake reduction by a major shareholder or … ?? Results on 24 Sep, not next week sorry getting a but too excited.
marktime1231
11 Sep 2019
So DX is turning around, still Well I am not 100% but the pre-close positive statement means results next week should confirm a return to profit. Even with a flat outlook the sp should be 20p already but management were bullish about progress in revenues too. Just in case this is all true and with a hint of a pick up of interest today I doubled up my stake in my income portfolio at 12.5p. The thinking is that a return to a 1p dividend might be around the corner, and a strong recovery in sp overdue. The 35% stake held by Gatemore needs to start making a return on his investment, whether a dividend payback or a value exit.
marktime1231
25 Jul 2019
So DX is turning around, still A good pre=close trading update confirmed that DX has indeed turned earnings-positive, not just for H2 but for the whole year, around £3M before tax etc. Good revenue growth to £320M+ to offset the loss of HMPO. Delivering the turnaround as promised. Repeats the outlook of £7M+ profits next year, on a forward basis this should be a 20p share already instead of slipping under 13p. I wonder why the caution, people waiting to see the hard numbers and not moving until dividends are resumed? I added a small slice in my ISA in anticipation of a small dividend, but really in the hope of a double up.
Ripley94
25 Jun 2019
moving up DX… XXXXX Good advise in February in hindsight i have bought to many that keep falling . Sold in ( B ) last week @ 13.65 , just got same back ( D ) 13.2 ( placed GTC limit over weekend ) Tuesday that did not take long .
marktime1231
29 May 2019
So DX is turning around, still A disappointing announcement yesterday that DX. has failed to renew its secure delivery contract with HMPO after 14 years, no doubt the cosy deal has been scuppered by the transfer of passport production from De la Rue to Gemalto for a post-Brexit return to the good old UK blue, how ironic using a johnny foreigner to print them. The old contract was I think worth around £22M out of around £300M annual revenues, presumably low margin. This renewal should have been more valuable given the amount of work involved in issuing everyone with a new non-EU passport. The loss was attributed to commercial rather than technical grounds … someone to be identified has contracted to deliver the service at a price which DX considered uneconomic. I wonder who won and at what risk to the standards of service. Meanwhile Ron Series says FY18-19 to June 2019 is on target to meet market expectations (without saying what those are) and a confident outlook for £7M+ earnings on £328M revenues to June 2020. Well I was expecting very slightly positive earnings this year and perhaps the return of a tiny dividend to signal confidence in the business, but now I am not so sure. The forecast for next year is extremely positive given that it takes into account the loss of HMPO, eg it signals strong underlying revenue growth, but is not so bullish on profitability. Those of us patiently waiting for DX to recover should not be too troubled by a reverse in the sp from 16p to 14p on this announcement. We will have to wait until late Sep or early Oct for confirmation of FY18-19 final results but Ron Series will have had enough visibility at this stage to make his “in line†announcement which amounts to the business having recovered from loss making to pisitive earnings in H2. I expect a return to upward sp momentum to carry us to 20p+ this year, and up to 40p next year when we will get a return to paying a small dividend.
marktime1231
14 Apr 2019
So DX is turning around, still The sp has its momentum back again, now 13p and rising with strong volumes being traded. Today I have been reviewing this as a future income punt … if we believe management outlook this could be a 20-40p share and back to paying a 1-2p dividend again in the next couple of years. Another report like H1 of improving revenues, up around 7%, and we will be there quite soon. Feels like a bit of a gamble but an attractive one if there is a chance of a double up and 10% yield. More attractive than many of the blue chip high yielders which seem destined for dividend cuts and sp falls. One to ponder.
marktime1231
04 Apr 2019
So DX is turning around, still Well I blame you then Ragesh because the sp has now dropped back to 11.5p … run out of momentum, or a temporary dip? Hey ho, no hurry.
