DX Group ploughs on as shares suspended, opening two new depots

Trading of DX Group’s shares on AIM has been "temporarily suspended" pending publication of the company's annual audited accounts.

However, day-to-day business is continuing at the company, which today announced the opening of another two depots.

The share suspension, from 7.30am yesterday (4 January), follows an announcement by DX in November last year that its audit and risk committee had raised a corporate governance inquiry relating to an internal investigation, which started during the 2021 financial year.

Yesterday the group, which specialises in corporate mail, courier and parcel logistics, said that while the inquiry was progressing "steadily", it has yet to be concluded. Under AIM rules, the company is required to publish its audited report by 2 January.

"As it was not in a position to do so, trading in the company's ordinary shares on AIM will be suspended with effect from 0730 GMT on 4 January, pending publication of the annual report," the board said in its statement. It confirmed that the suspension would be lifted when it publishes the report.

"Notwithstanding the temporary suspension of trading in the company's ordinary shares, the company will continue to make announcements as and when there are any developments that require announcement in accordance with its obligations under the AIM rules,” it added.

In December, DX Group appointed Liad Meidar, managing partner of Gatemore Capital Management to its board, after the activist fund demanded a seat in order to address the governance issues.

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Meidar said at the time that the company “is now facing tremendous growth opportunities,” adding that as a major shareholder “I remain an enthusiastic supporter, and am committed to assisting the company through the current situation to the benefit of all shareholders.”

Meanwhile DX Group is continuing its delivery network expansion, announcing today that is has opened two new depots in the West Midlands and the South West of England as it continues to expand its delivery network.

Both depots will serve the Group’s DX Freight division, which specialises in the delivery of irregular dimension and weight (IDW) items.

The new depot in the South West is located on Bodmin Business Park, and will service distribution across Cornwall. The new West Midlands depot is located on Severn Stars Industrial Estate in Coventry.

DX’s freight operations at Nuneaton, where the Group’s Express division also operates, have transferred to the Coventry depot.

The company said the new depots will increase the group’s delivery capacity, enhance customer service levels and free up resources at other depots.

The depot openings are part of DX’s major delivery network investment programme, which has seen £10m invested over the past two years. Another £20m to £25m is set to be invested over the next three years in the network which will include another 12 additional depot openings and further investment in parcel-handling equipment and IT infrastructure.

Announcing the opening of the two new depots, Lloyd Dunn, chief executive of DX Group, said: “We have found two excellent sites in Bodmin and Coventry. Not only do they add further capacity but they will help to enhance customer service levels.

“Investment in the depot network will continue to be a major focus this year, as we continue to drive the business forward, supported by our £20 million - £25 million capital investment programme.”