DX (Group) PLC HMPO Contract and Trading Update (7511P)
22 November 2016 - 6:00PM
UK Regulatory
TIDMDX.
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 T: 020 3829 5000
and Joint Broker)
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
This information is provided by RNS
The company news service from the London Stock Exchange
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