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Delivery solutions provider DX said it had failed in its efforts to renew its delivery contract with HMPO.
The company's contract with HMPO was now expected to expire in January 2020, after a transition period. Importantly, financial results for the current financial year ending 30 June 2019 would not be affected, the company said and confirmed that it was on track to market expectations.
'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,' the company said. The update comes as the company continued to make progress on its turnaround, with an update expected to publish in mid-July.
'Having held this contract for 14 years, we are disappointed not to have been successful in our bid, which we believe was based on commercially realistic terms. Over its tenure, DX set new and higher service standards for this important contract, and we are proud of what has been achieved for HMPO,' said Ronald Series, Chairman of DX.
'DX's turnaround strategy continues to show encouraging progress, and we are comfortably on track to attain market forecasts for the current financial year. We also believe the Company is well-positioned to achieve market forecasts for profitability in the next financial year, even after the non-renewal of the contract.'
' This reflects the significant progress that has been made with DX's turnaround and the momentum in the business. We remain very focused on capturing the growth opportunities ahead of us, and will continue to invest in the long term growth of the business.'