(Alliance News) - Wincanton PLC on Friday reported annual revenue ahead of pre-pandemic levels and a jump in profit on strong growth in retail volumes, leading the firm to up its dividend.
The Wiltshire, England-based logistics firm posted a pretax profit of GBP54.8 million in the year ended March 31, reflecting a 19% increase from GBP46.2 million posted the year before.
This was on revenue of GBP1.42 billion, up 16% versus GBP1.22 billion. Wincanton added that revenue also grew by 18% on pre-pandemic levels of GBP1.20 billion in financial 2020.
The company credited the revenue rise to growth in all four of its sectors, supported by retail volumes that remained "robust" throughout financial 2022. Additionally, Wincanton won several contracts in its "key strategic growth markets", which are e-commerce, the public sector, and infrastructure.
"We are in attractive markets with widening opportunities. Our performance was good despite inflationary pressures experienced this year together with the lag effect of price renegotiations with customers," Wincanton said.
It noted that it would remain "vigilant" to respond to future market conditions as necessary.
On the back of the resilient results, Wincanton recommended a final dividend of 8.0 pence, 6.7% higher year-on-year compared to 7.5p. Further, this brought its full-year payout to 12.0p, up 16% from 10.35p.
Going forward, Wincanton plans to focus on delivering sustainable, profitable growth over the long-term. The firm said that it is well-positioned to maintain its positive performance across its chosen markets.
"Wincanton has delivered another strong set of results, with growth across all four sectors leading to a substantial increase in revenue and profit ahead of pre-pandemic levels," Chief Executive James Wroath said.
"While mindful about the macro-economic headwinds facing our sector, we are confident in the growth opportunities we have ahead of us and in our continued ability to deliver our strategy successfully."
Wincanton shares were trading 2.9% higher at 414.00 pence each in London on Friday morning.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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