DX Group retains Home Office contract to provide secure deliveries

Shares in DX Group rose after the parcel delivery company announced it had retained their contract with the Home Office for secure delivery services.

Following a tender process, the AIM-listed company was awarded a contract to provide secure delivery services to HM Passport Office, UK Visas and Immigration, the National Crime Agency and the General Register Office, subject to finalisation.

The contract is for an initial two years and may be extended by another two.

Chief executive Petar Cvetkovic said: "We are proud to have provided a high quality service to HM Passport Office for over a decade, setting market-leading standards of security and care during this time, and we look forward to building on these achievements.”

Meanwhile, the company said that trading conditions over the first half of the year have been “challenging” and there has been margin pressure due to a change in revenue mix.

But the company has won a number of new contracts due to start and has a pipeline of new business opportunities in negotiation.

Cvetkovic said: “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.”

A planning appeal and revised application to develop a new central hub in the West Midlands is still under consideration by the local authority and the company expects a decision to be made by mid-February.

Shares in DX Group were up 12.68% to 20p at 1235 GMT.