4th Feb 2022 11:55
(Alliance News) - DX Group PLC on Friday said Grant Thornton has resigned as its auditor, citing concerns about the findings of a corporate governance inquiry.
The Slough, England-based parcel freight, secure courier and logistics provider said it had been in discussions with Grant Thornton over the pace of the inquiry, which is holding up the audit of its financial 2021 accounts.
According to DX, Grant Thornton said it resigned over concerns about "actual or potential breaches of law" by DX employees and the provision of inaccurate information to the corporate governance inquiry that didn't "give a full picture of the scale and seriousness of the facts".
DX said it disagrees with the reasons given by Grant Thornton and will provide further commentary in "due course".
The company noted that the inquiry is about corporate governance, not financial performance, which remains in line with the trading update it provided on Wednesday. DX had reported an 11% increase in revenue in the first half of its current financial year, which runs to the start of July.
DX Group shares have been suspended since the start of 2022 due to the late accounts. If the company doesn't publish the accounts by July 4 this year, it may be delisted from AIM.
Major shareholder Gatemore Capital Management LLC leapt to the company's defence on Friday.
"Following these resignations, we believe there is an opportunity for the business to move forward. Shareholders have been assured that the matter being investigated by DX Group is a corporate governance and disciplinary issue and not related to the financial performance or the financial position of the group," said George Cadbury, a partner at Gatemore.
"Gatemore is fully supportive of the board and management who it understands remain intensely focussed on completing the ongoing investigation in full, whilst continuing to do what they do best – building a leading force in the UK logistics sector."
Gatemore has a 20.8% stake in DX Group, according to a recent stock exchange filing, and Liad Meidar, managing partner of Gatemore was appointed a DX Group non-executive director in December.
By Tom Waite; [email protected]
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