Gatemore Capital Management LLP has called for DX Group Plc to hold an EGM. The intention behind this is to propose that Chairman Bob Holt, and Paul Murray, The Non-Executive Director are replaced by four new board members. It has been suggested that the new appointments need to be four completely independent board members.
Gatemore has an interest in this decision because they hold 11.3% of DX’s common stock, making it the largest single stockholder. The share value of DX has declined by 90% after profit warnings were issued in both November 2015 and February 2017. The company has tried implementing an integration plane, called OneDX, and has failed to see any real improvements.
Since this, the current board members have failed to find any other successful strategic alternatives. Because they are seemingly unable to find any solutions, it is agreed amongst the largest shareholders of DX that a board level change is required.
Gatemore has been working alongside the businesses other large stakeholders in order to look for candidates for the position. These four candidates have been fully vetted and it is thought that they could lead DX in the right direction. These four candidates could also make up one of the more well-rounded boards within the UK’s delivery sector. All of the candidate have previous experience in transport as well as in business turn-around and should be well equipped to explore more strategic alternative for DX which would hopefully see the business improving. It is also important that Gatemore and the other major stakeholders are putting forward candidates that are entirely independent of Gatemore and the other major stakeholders of DX.
The candidates for these new board members are Ronald Series for the position of Chairman, Lloyd Dunn, Paul Goodson and Russell Black as the Non-Executive Directors. We hope to see these appointments bringing new opportunities for DX and its shareholders.