DX (Group) PLC Resignation of Auditor (6756A)
February 04 2022 - 1:59AM
UK Regulatory
TIDMDX.
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 T: 020 7220 0500
Broker to DX)
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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