DX (Group) PLC (LON: DX) share price crashed by 40.8% after delaying the publication of their annual results due to an internal investigation that is yet to be completed.
The British logistics company said it expects its shares to be suspended from trading on the London Stock Exchange on January 2, 2022, since it will not have completed its internal investigations.
Investors were shocked by the news, which sent the logistics company’s shares plunging despite saying that the investigation was primarily related to a corporate governance issue.
The investigation started before the end of the company’s fiscal year on July 3, 2021, which has led to a delay in publishing the firm’s financial results.
Investors are worried that the investigation may reveal even more disturbing news in the future, leading to further losses.
Investors also do not like the looming suspension of DX shares from trading, given that the company has over a month to complete the investigation before the six months deadline for filing its full-year results elapses.
DX Group issued a statement saying: “The company’s Audit & Risk Committee has recently raised a corporate governance inquiry relating to an internal investigation commenced during the financial year ended July 3, 2021. The inquiry has yet to be concluded, and the process will delay the completion of the audit but will be expedited as quickly as possible,”
Adding:
“The board remains confident that DX is well-placed to continue to increase its market share and make progress over the new financial year,”
However, the company noted that its trading results were in line with expectations, but investors were not sitting around waiting for positive news given today’s selloff.
Investors interested in accumulating a position in DX Group may find the current prices quite attractive. However, we could see further declines in future as the January 2, 2022 deadline approaches.
*This is not investment advice. Always do your due diligence before making investment decisions.
DX share price.
DX Group share price crashed 40.83% to trade at 17.75p, falling from Wednesday’s closing price of 30.00p.
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