Primary Recommendations

DX Group - Acquisition of 15 Tuffnells sites heralds step change in growth prospects

September 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

In an unusual circumstance, the chief executive of DX now finds himself running Tuffnells Parcels Express, a major player in the IDW (irregular dimensions and weight) market, specializing in the delivery of unconventional items like gym equipment and bicycles, for the second time in his career. When Tuffnells fell into administration last month, leaving a significant void in the market in which they once held 15%, he quickly stepped in and acquired 15 of Tuffnells' depots, adding considerable strength to his own operations. While some of these acquired depots may be relinquished due to overlap with DX's existing sites, the move is projected to result in an immediate £35 million boost in sales, with further growth expected to reach ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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