Hi everyone,

There's not much in terms of results today but there are some trading updates on some familiar stocks, so that's what I'll be covering.



DX (Group) (LON:DX.)

  • Share price: 9.5p (suspended)
  • No. of shares: 200 million
  • Market cap: £19 million

Trading Update

These shares remain suspended due to ongoing procedures related to a potential reverse takeover by Menzies Distribution.

That doesn't stop the news flow and today we learn that the CEO and CFO are both stepping down from the company.

Perhaps given the destruction of the share price, there are few platitudes given in the statement with respect to these changes.

We further learn that the company's bank remains supportive in relation to net debt at end-June of £19 million.

If the bank wasn't supportive, the consequences would likely be dire for equity value, so this is certainly not a positive - just the absence for now of a serious negative.

But perhaps the outcome isn't going to be so bad for shareholders after all, if the Menzies deal goes through. The Group is being reorganised into two divisions, Express and Freight, whose managers will report to the Board. Is that in preparation for the Menzies deal going through, I wonder?

Adjusted PBT is set to be in line with market forecasts. Overall, combined with the personnel changes and the restructuring, I'd see this as a soothing update for long-suffering shareholders.

Character (LON:CCT)

  • Share price: 490p (+1.6%)
  • No. of shares: 21.1 million
  • Market cap: £103 million

Character renews license for Teletubbies

Again, I see this as less of a positive than the absence of a negative!

Character, through its subsidiary Character Options, designs and distributes a wide range of toys under some of the most well-known brands.

The relationships with the licensors are critical, and Character has done a really good job over the years of impressing IP-holders with what it can do.

Today's statement confirms that Character is still impressing DHX, the owner of the Teletubbies brand. Another happy customer:

"As we continue to grow the overall licensing programme for Teletubbies, it is imperative that we build on strong sales and marketing in core categories.  Character Options has done a sterling job with the toy lines and we are excited about the…

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