22 Jul 2020 07:00
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION
LEI: 213800Z5WTW8QKOHWQ82
For immediate release
Wincanton plc
AGM TRADING STATEMENT
22 July 2020
Wincanton plc ("Wincanton" or the "Group"), the largest British third-party logistics company, will be holding its AGM at 11:00 today. At the meeting the Chairman, Dr Martin Read, will make the following statement:
Business performance update
We have continued to see a steady recovery in trading since reporting our preliminary results on 17 June 2020. There have been improved levels of demand across most of the business, particularly in home delivery operations and eFulfilment, although volumes in some areas, including construction and fuel distribution, remain below prior year.
We recently announced two significant new contracts which will both commence in the current financial year: a transformational eFulfilment contract with Waitrose for home delivery in London; and a contract with Morrisons to manage additional distribution, vehicle maintenance operations and national transport planning services. Our customers recognise the strong performance we deliver for them, evidenced by the award of a contract to operate a fifth Screwfix distribution centre and a two-year extension of all our transport and warehousing services with Asda.
The Group acted swiftly to implement structural cost changes in response to the reduction in demand. This included down-sizing our vehicle fleet and reducing overhead costs across the Group. In addition, variable costs have been closely managed to match returning demand levels.
Cash collection and liquidity management remain strong and current net debt remains significantly below the prior year position, primarily due to the deferral of payments.
Outlook
The combination of our strong new business performance, early cost intervention measures and the recovering economy mean that we expect our full-year underlying profit before tax to be significantly ahead of current market forecasts and not less than £30m. This assumes there is no further COVID-19 impact that severely reduces our volumes from current activity levels.
James Wroath, CEO, commented,
"I would like to thank the team again for their extraordinary efforts throughout the COVID-19 crisis, and the inspirational way they have demonstrated resilience and agility in delivering for our customers. Despite the challenges COVID-19 has presented us, the Group has been successful in winning new business and renewing existing contracts, positioning us well for future growth".
ENDS
Further information:
A listen only conference call facility to allow shareholders to dial in to the Wincanton plc Annual General Meeting and follow proceedings remotely will be held on Wednesday 22 July 2020, commencing at 11.00am.
Dial in details are as follows:
PARTICIPANT INFORMATION
Dial in number(s)
United Kingdom Toll-Free: 0800 358 9473 PIN: 87300207#
United Kingdom Toll: +44 333 300 0804 PIN: 87300207#
URL for international dial in numbers
https://events-ftp.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf'
For further information please contact:
Wincanton Plc Tel: 01249 710 000
Tim Lawlor, Chief Financial Officer
Buchanan Tel: 020 7466 5000
Richard Oldworth/Vicky Hayns
Notes to Editors
About Wincanton
Wincanton is the largest British third-party logistics (3PL) company, providing supply chain solutions to some of the world's most admired companies across a wide range of industries including retail, construction, defence and energy.
As a trusted and respected business partner, we design and implement services and solutions that range from setting up and operating distribution networks, through to bonded warehouses, technology hosting, container transport and storage. We strive for operational excellence in everything we do.
We work hard to understand and respond to our customers' needs, build long-term relationships and use our skills and expertise to deliver a smarter, added value service, every day. Our customers rely on us to make their businesses operate more efficiently and to gain a competitive advantage in their sector.
Key facts:
• 19,100 colleagues
• 200+ locations
• Responsible for 3,500 vehicles
• Revenue £1.1bn
• 5,500 drivers
• 14m sq ft of warehousing space