REG - DX (Group) PLC - Resignation of Auditor

DX (Group)Announcement

04/02/2022 07:00

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RNS Number : 6756A  DX (Group) PLC  04 February 2022

AIM: DX.

DX (Group) plc

("DX", the "Company" or the "Group")

 

Resignation of Auditor

 

DX announces that the Group's auditor, Grant Thornton UK LLP ("Grant
Thornton"), has tendered its resignation.

 

The Board has been in discussions with Grant Thornton with respect to the
progress of the corporate governance inquiry ("Inquiry") as reported by DX on
25 November 2021, and which is required to be completed prior to the
conclusion of the audit of the financial statements of the Company for the
year ended 3 July 2021. The Inquiry which, until their resignations as
announced on 2 February 2020, was led by Non-executive Directors, Ian Gray and
Paul Goodson, has not proceeded as expediently as initially hoped by the
Board. Nonetheless, it remains focused on concluding the Inquiry as soon as
possible.

 

As required in the circumstances by section 519 of the Companies Act 2006 (the
"Companies Act"), Grant Thornton has provided the Company with the reasons
connected with its resignation (the "Reasons"). However, the Board of DX does
not consider that the Reasons provided by Grant Thornton accurately reflect
the current situation. As required by the Companies Act, DX will send a copy
of the Reasons to shareholders within 14 days of their receipt.

 

The Board reiterates that the Inquiry is a corporate governance investigation
and, in addition, notes that it is connected to a disciplinary matter. It does
not relate to the financial performance or the financial position of the
Group, consistent with the trading update released on 2 February 2022.

 

Grant Thornton's stated Reasons relate to its view of the Company's governance
and to executive conduct, specifically arising in connection with Grant
Thornton's concerns over: (i) actual or potential breaches of law and/or
regulations by the Company and/or by an entity in the DX (Group) Plc group
and/or by employees; (ii) the performance of the investigation and subsequent
corporate governance inquiry referred to by the Company in its announcement on
25 November 2021, and action in response to the evidence generated by that
investigation and inquiry; (iii) the provision of inaccurate information,
which in Grant Thornton's view did not give a full picture of the scale and
seriousness of the facts referred to in (i) and (ii) above; and concerns over
insufficient access to relevant information and documents, in relation to the
matters being investigated by the Company.

 

The Board intends to provide further commentary to shareholders on the Reasons
and to provide an update on the progress made with the Inquiry. Further
updates will be made in due course.

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the company's obligations under Article 17 of
MAR.

 

Enquiries:

 

 DX (Group) plc

 www.dxdelivery.com
 Ron Series, Chairman                                        T: 020 3178 6378

 Lloyd Dunn, Chief Executive Officer                         (c/o KTZ Communications)

 David Mulligan, Chief Financial Officer

 finnCap (Nominated Advisor and Joint Broker to DX)          T: 020 7220 0500
 Matt Goode/Simon Hicks (Corporate Finance)

 Andrew Burdis/Charlotte Sutcliffe (Corporate Broking)

 Liberum (Joint Broker to DX)                                T: 020 3100 2000
 Robert Morton/Nick How/William Hall

 KTZ Communications                                          T: 020 3178 6378
 Katie Tzouliadis/Dan Mahoney

About DX (Group) plc:

 

DX is a well-established provider of a wide range of delivery services to both
business and residential addresses across the UK and Ireland. First
established in 1975 as a Document Exchange service to the legal sector, DX now
provides one of the widest ranges of overnight delivery services in the
market, as well as logistics services. Items that DX transports range from
confidential documents and valuable packages to large, awkward-to-handle
freight, unsuitable for automated conveyor.

 

DX Freight: comprises DX 1-Man, DX 2-Man and Logistics. The Division
specialises in the delivery of irregular dimension and weight freight ("IDW").

 

DX Express: comprises DX Parcels and DX Exchange and Mail. The Division
specialises in the express delivery of parcels and documents.

 

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