Good morning!

DX (Group) (LON:DX.)

  • Share price: 8.45p (+2%)
  • No. of shares: 200.5 million
  • Market cap: £17 million

Financing Update, Property Disposal, Gatemore Loan

I have previously written this logistics player off as uninvestable in its current state, and that remains my view on this RNS.

Indeed, I'm surprised the shares haven't already fallen to a much lower level on today's news:

the Board has identified a near term material funding requirement, over and above the Company's existing resources, to address a working capital shortfall, caused by the Company's recently reduced levels of profitability, and to provide funds for the planned investment into improving the financial performance of the DX business

Elsewhere in the announcement, we learn that the company has sold £4.5 million in properties (sale and leaseback), and has borrowed £2 million from a shareholder, both in order to replace a term loan from its bank.

But the overall debt pile was significantly bigger than that (£19 million last seen) and dilution is on the cards. This could become investable again after the refinancing, but not before then. Why prop up the share price before new shares get issued to institutions?

Volvere (LON:VLE)

  • Share price: 785p (+5% yesterday)
  • No. of shares: 4.1 million
  • Market cap: £32 million

Interim Results

(I currently have a long position in VLE)

I'm struggling to find good companies to write about today, so might as well circle back to yesterday and talk about Volvere.

Volvere is now my largest individual position after recent share price gains, including yesterday's 5% move. It looked like it was going to make a larger gain, but ended up closing on its lows.

This is an investment company which I've written about before. It's run by a very small team and buys into special situations, usually where a business needs financial restructuring.

It's very concentrated and currently only has three investee companies, of which one of them is still tiny. So it's effectively just holding two companies, and a huge pile of liquidity.

I was delighted with these results before the market opened, and clearly I wasn't the only one.

First up, the aggregate numbers:


Volvere also reports NAV, which comes in at 623p per share at June 2017 (up from 617p at December 2016).

The NAV is a sort…

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