HMPO Contract and Trading Update

RNS Number : 7511P

DX (Group) PLC

22 November 2016

 

22 November 2016

AIM: DX.

This announcement contains inside information.

DX (Group) plc

("DX" or "the Company")

Home Office Contract

&

Trading Update

DX, the independent parcels, mail and logistics operator, announces the outcome of the tender process for the contract with Her Majesty's Passport Office ("HMPO") and provides an update on current trading, including its planning appeal and revised proposal for a new distribution centre in the West Midlands.  

Following the conclusion of the tender process for the Home Office contract covering secure delivery services for HMPO, UK Visas and Immigration, National Crime Agency and General Register Office, the Company has been notified that it has been provisionally awarded the contract, which remains subject only to the finalisation of documentation. The contract is for an initial two year period and may be extended by up to two years.  

Trading conditions over the first half of the financial year have remained challenging and there has been margin pressure mainly resulting from a change in revenue mix.  Nonetheless, with a number of major new contracts due to commence and an encouraging pipeline of new business opportunities under active negotiation, management remains focused on meeting its existing expectations for the full year.   

The Company's planning appeal and revised application to develop a new central hub in the West Midlands remains under consideration by the local authority and DX now expects a decision by mid-February.  A further update on this will be provided in due course.

Petar Cvetkovic, Chief Executive Officer of DX, said:

"We are very pleased to have retained the Home Office contract in this tender process.  We are proud to have provided a high quality service to HMPO for over a decade, setting market-leading standards of security and care during this time, and we look forward to building on these achievements.

Trading pressures remain in the business but we are focused on meeting management expectations for the full year and are encouraged by both the new contracts due to start and by the pipeline of new business opportunities under active negotiation." 

Enquiries:

DX (Group) plc
Bob Holt, Chairman		M: 07778 798816
Petar Cvetkovic, Chief Executive		T: 01753 631 624
Daljit Basi, Finance Director
Zeus Capital (Nominated Advisor and Joint Broker)		T: 020 3829 5000
Nick How, Dominic King
Numis Securities (Joint Broker)		T: 020 7260 1314
Stuart Skinner, Toby Adcock
KTZ Communications		T: 020 3178 6378
Katie Tzouliadis, Viktoria Langley, Emma Pearson

 

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