LOGISTICS software company Agility Systems has won its first major contract in an emerging technology.

It is also in talks with a group to install its software across the US and Europe, The Northern Echo has learned.

Darlington-based Agility, which was bought by the Chelford Group in the summer, is a specialist in radio frequency identification (RFID) technology, which is used to track items wherever they may be in the delivery process.

The company has been specialising in logistics IT services for ten years, but recently set up a subsidiary, RFID Solution Centre, to research the potentially multi-billion pound market.

Now Agility has secured its first contract, with parcel carrier GeoPost.

The move means GeoPost is the first parcel carrier in the UK to begin using the technology.

The contract will initially be worth about £100,000 to Agility, which has an annual turnover of £2.75m, and profits of about £500,000.

Most of its business is in supply chain technology, other than RFID, for major international logistics companies.

Managing director Kevin McDaid said: "It is an important contract, especially for an early marketplace.

"It is a confident investment by Geopost in the new technology. We will be looking at other areas once the first stage is complete."

He said that Agility, which he set up ten years ago, was in talks with a major company that was considering implementing RFID across its US and European operations.

Agility, based at Lingfield Point Business Park, Darlington, is investing about £250,000 a year in research and development through its RFID Solution Centre operation.

Researchers are looking at how companies can benefit from RFID through a capability study. Mr McDaid said: "Research has shown that the market is demanding a single point of reference for all RFID requirements. Our aim is to help customers unlock the potential of this technology and gain significant returns on their investments.

"Investing in both technology and applications for the supply chain will offer many opportunities in a niche market that is yet to be fully exploited."

Agility has teamed up with Intermech, which provides the hardware to complement Agility's software. The companies won the Geopost contract together.

Agility was bought by Chelford Group in a cash and shares deal worth about £3.8m.

Mr McDaid said Chelford wanted to link the companies' customer bases, and gain a foothold in the emerging RFID market.

However, he said Agility would retain its separate identity and would be staying in Darlington, where he hopes to expand the business and create jobs.