DX Group is planning a £170 million listing on the London Stock Exchange’s Alternative Investment Market (AIM).
The delivery company, known for its technologically-savvy logistics and dispatch platforms, has signed on specialist Zeus Capital as adviser and broker. Mike Sturrock, CIO of DX Group, said the company would be courting fund managers, eyeing a February 27 float.
“We've been working on this for some months, and our positioning in the market has a large measure of focus on technology and the programme of work we’re running,” he told CIO UK.
Sturrock, the company’s IT head since 2011, has been driving the change including its integration of Nightfreight, a rival it acquired in March 2012. DX Group’s IT team is split across its key sites of Iver in Middlesex and Northampton, and a Nightfreight team in Bootle, Merseyside.
“Fund managers have asked us some tough questions about our ability to make the level of change and development in technology that we'd outlined. We've been able to give that confidence,” Sturrock said.
DX Group is currently owned by a fund managed by Arle Capital Partners. Its predecessor Candover acquired the company in 2006 when it was spun off by Hays. The company has posted a revenue of £305.7 million for the year to 30 June; a 48 percent rise on an annualised basis. DX Group’s operating profit came in at £34.4 million for the stated period.
In terms of its operating portfolio, there are 12 DX distribution centres, 18 main DX centres and 15 Nightfreight centres. In an interview with CIO UK last year, Sturrock said the company was intent on expanding its reach and going beyond its core client portfolio.
“We are already working with a number of e-commerce companies and see growth in that area. This is especially so for retailers that want high quality service and assurance around the identification of the recipient such as a signature or other proofs of correct delivery such as GPS coordinates, timestamps or digital pictures of the front door the item was delivered to,” he added.
Given the company’s clear ambition of targeting fund managers, the choice of Zeus Capital, which has advised on string on successful AIM floats from Conviviality Retail to CentralNic in recent months, comes as no surprise.