- 29 May 2019
- Transport / Logistics Services
Troubled specialist couriers DX has been told that Her Majesty’s Passport Office has chosen not to renew its delivery contract with the company. The contract was set to expire in January 2020.
In a trading update, DX said: “Following the conclusion of the tender process for the HMPO secure delivery contract, it has been notified that its renewal bid, which was based on commercially realistic terms, has been unsuccessful.
Nevertheless, the company said that this would have no effect on its results for the current financial year. “The Board also believes that the Group remains well-positioned to achieve existing market forecasts for EBITDA of £7.7m and revenue of £328m in the next financial year ending 30 June 2020.”
This news follows well reported struggles at the company as management considered whether to sell the company or to transform it, in the process sending its profits downward and causing some concern as to whether it would survive. Such instability is sure to be a factor that the HMPO considered when it came to renewal. DX is well on the road to recovery, and this is unwelcome news for the company in those circumstances.