• 09 October, 2017 News

    DX Group shares surge as it unveils £24m fundraising plans and new boss
    Shares in DX Group rose more than 15 per cent in early trading DX Group shares surge as it unveils £24m fundraising plans and new boss

    Shares in DX Group rose more than 15 per cent in early trading after the delivery firm announced £24m in fundraising and the appointment of a new chief executive.

    The firm announced that a huge leadership shake-up was incoming after flagging an “exceptionally challenging” year in its July trading update.

    This morning, DX has announced that its agreed terms for a £24m fundraising to address the short-term cash position of the firm. It said that it had become weak reflecting the previously cited challenges in the business hitting profitability and cash generation.

    The fundraising will be in the form of secured loan notes which include conditional conversation rights.

    DX's largest shareholder Gatemore Capital Management said the announcement marked "a new start for DX”.

    Liad Meidar, managing partner at Gatemore, said: “DX now has a healthy balance sheet and is poised to return to historic levels of profitability over the coming years under this new team. The enthusiasm amongst everyone who has been working on this is palpable.”

    DX also unveiled that Lloyd Dunn had been appointed as chief executive, originally a non-board position. Additionally, Ron Series will join as chairman, with both Paul Goodson and Russell Black joining as non-executive directors.

    Dunn said the firm believed the refinancing was “a critical step” to turn DX around.

    Back in August, John Menzies called off its proposed £40m deal to rid of its distribution arm to DX off the back of further due diligence in the wake of a trading update.

    Moreover, the company stated that it wasn’t possible to reach a deal that would be in the interest of its shareholders, so it closed discussions with DX.

    Contact one of our brokers today at, www.forex.ltd.uk.


    Abi Moses

Latest News