Good evening.

Sorry I'm late today - was up at 5am, had done all my emails & Tweets, and was raring to go when the RNS started chucking out announcements at 7am, but within an hour was shivvering & coughing with a bug, so had to go back to bed.

Anyway, we don't like gaps in the sequence, so I'll catch up now.



NetDimensions Holdings (LON:NETD) - (at the time of writing, I hold a long position in this share) - a friend has pointed out this video with the CEO of Learning Technologies (LON:LTG) . In it he emphatically states that the Placing to raise the cash necessary to buy NETD has been done. Therefore any worries I had about whether it could raise the necessary funding seem to have been satisfied.

So it looks a done deal. I've not sold my shares yet, as a 5p discount to the 100p takeover price is too large, so I'll sit tight until the discount is only say 1p.



DX (Group) (LON:DX.)

Share price: 6.95p (down 61.4% today)
No. shares: 200.5m
Market cap: £13.9m

Trading update (profit warning) - this is the latest in a series of dire updates from this mail & parcels business. Key points today;

  • Challenging conditions continuing
  • Pressure on pricing
  • Higher margin business failed to materialise
  • Fixed cost nature of courier business is hurting profitability
  • Problems integrating 5 sites into 1


On a more positive note,

  • the lower margin logistics business has been winning new work, and
  • "material new contracts are now being implemented and the Company's pipeline of new business opportunities is robust"


Put this all together then, and it's a nasty profits warning:

it now anticipates that profits for the year will be significantly below current market forecasts, with net debt consequently higher than expected.


Forget dividends too, probably forever;

...It has also taken the decision not to pay any dividends for the foreseeable future


A full review of the business is underway:

...and has commenced a wide-ranging review of the Company's operations with a view to driving revenues and improving its financial performance.


What's taken management so long? It's been obvious for some time that the business model here was completely broken. The reason is simple - a high fixed cost base, and declining customer revenues.

The core DX Exchange…

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