Shares in Office2Office jumped to a 15-month high this week after the company announced that it had secured what it said was the largest public sector office supply contract in UK government history.

The company won a three-year contract worth £37m a year to supply central government departments with paper and other office materials. It replaces most of the 144 different contracts that had previously supplied the departments.

Office2Office was once part of Her Majesty’s Stationery Office, a government body that was privatised in the late 1990s, and still enjoys close ties with the government.

News of the contract sent the stock up over 5 per cent. The shares are up nearly 30 per cent this year, partly due to a lucrative private contract announced in May.

It helped to offset sluggish first-half earnings, with revenues weighed down by a decline in public sector orders.

The company has been trying to change its business model since it lost a Ministry of Defence contract in 2007. It has attempted to move beyond pens and pencils into other office services such as document shredding.

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