(Alliance News) - Wincanton PLC on Tuesday lamented the loss of a major contract with UK HM Revenue & Customs and a more challenging backdrop moving forward, issuing a profit warning for financial 2024.
Shares in the firm plunged 24% to 231.78 pence on Tuesday morning in London.
The Wiltshire, England-based logistics provider said it has been notified by UK HMRC of its decision to move to another supplier to support customs arrangements at inland border facilities, following a retendering process.
The contract will be transferred by June. Wincanton said it is "extremely disappointed" to lose this business after two years.
In addition, the company said it continues to expect a more challenging external environment in the coming financial year, including an accelerated reduction in consumer spending and customer volumes.
As a result of this, Wincanton said it now expects a reduced pretax profit for financial 2024. It expects the figure to be "materially lower" than current market consensus, which it places at GBP63 million.
More positively, the Chippenham, England-based firm confirmed it continues to trade in line with expectations for the year ending March 31. It expects to deliver revenue growth of around 3% and pretax profit growth of around 5% in the year, despite labour shortages, inflation, and consumer spending downturn.
By Heather Rydings, Alliance News senior economics reporter
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