DX Group has won a new, four-year secure delivery contract with the Home Office but the firm’s plans to build a new Midlands superhub face further delay.

The £25m Home Office contract, announced in a trading update this week, covers secure delivery services for the Passport Office, UK Visas and Immigration, the National Crime Agency and the General Register Office.

It runs for two years, with a two year extension option, and sees DX Group retain its position as the Home Office’s secure delivery services partner.

In the trading update DX said trading conditions remained “challenging” with margins hit by a change in revenue mix. Although it added it had an “encouraging” pipeline of new business opportunities.

DX also provided an update on its £63m superhub in Essington in Staffordshire. The firm, which failed to get planning permission in May this year, following concerted local opposition to its plans, submitted an appeal and a revised proposal for the 44-acre site.

It was expecting a decision this month but this has now been delayed until mid-February next year. A DX Group spokeswoman told Motortortransport.co.uk the delay was to do with “council processes”.

DX group CEO Petar Cvetkovic 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."