The spike is off a relatively low base after the stock collapsed earlier this year.
Companies: DX (Group) Plc
DX Group (LON: DX/) has released its preliminary results for FY17 today which have instilled a fraction of confidence in the Group as shares jump 17% in early morning trading.
The Group saw its share price collapse back in February off the back of a profit warning and dividend cut, caused by rising costs and increased competition. Two-thirds of the share price disappeared in a day, with the stock slowly crawling its way back since.
Revenue growth has been relatively flat YoY with a reported £292m slightly up from the £289 reported in F16.
EBITDA of £7.2m has also been reported, well below the £18m in the same period last year, while Adjusted PBT will be £nil, down from the £11.5m in 2016.
Management has announced a wide-ranging review of its operations, to be led by newly-appointed CEO Lloyd Dunn and Chairman Ron Series. Two new non-executive directors have also been appointed to the Board.
It also announced a £24m fundraise which will be used to:
"Address a working capital shortfall, capital expenditure and restructuring costs."
Newly-appointed Chairman Ron Series commented:
"The new team has significant experience, both of the industry and of business turnaround situations, and we are taking a positive and determined approach to DX's turnaround."
The current share price of 12p represents 66% of the 18p price before February's collapse. It trades at an earnings multiple of 6, less than half the industry median of 13 and has a Market Cap of c. £21m.
