AIM-listed delivery firm DX Group has admitted its auditor has resigned amid an investigation into corporate governance at the company.
In a statement published today, DX confirmed that its auditor Grant Thornton has resigned amid concerns that inaccurate information had been provided by the company amid an ongoing inquiry and laws may have been broken. The surprise resignation comes days after non-executive directors of DX, Paul Goodson and Ian Gray, who were leading the inquiry into corporate governance at the company both quit.
DX said its auditor resigned over “actual or potential breaches of law and/or regulations by the Company,” and “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 the investigation.
The inquiry into corporate governance began on 25 November 2021 and is still ongoing with DX unable to publish its full year results while the investigation proceeds.
Activist investor Gatemore Capital Management, which has an economic interest of approximately 20 per cent in DX, welcomed news of the auditor’s exit.
“Following these resignations, we believe there is an opportunity for the business to move forward,” Gatemore capital told City A.M..
“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,” the spokesperson added.
In a trading update published on Wednesday the company claimed that revenue for 2021 was approximately 11 per cent ahead of the first half of the previous financial year, and the trading momentum has continued into the third quarter of the financial year. Net cash at the period end totalled £14.5m according to DX. The company’s shares remain suspended pending the publication of results in full.