5 Oct 2021 07:00
5 October 2021
Wincanton plc
("Wincanton" or the "Group")
Trading Update
And
Notice of Results
Wincanton plc, a leading supply chain partner for UK business, today issues the following trading update ahead of its half year results for the six months ended 30 September 2021.
Further to the update issued on 13 September 2021, the Group has continued to deliver strong revenue growth throughout the period, with positive contributions from all four of the Group's sectors and particularly from retail customers.
Wincanton continues to make positive strategic progress having completed the acquisition of Cygnia Logistics Limited, a specialist mid-market eCommerce and multichannel eFulfilment provider, for £23.9m in September 2021. The transaction further strengthens the Group's eFulfilment offer and the early stages of the integration of the business are progressing as planned.
During the period, Wincanton secured a five-year extension to its framework agreement with long-term customer BAE Systems. The contract will see Wincanton continue to provide transport, warehousing, materials management, packing and inspection services to BAE Systems. The Group has also secured an expanded mandate with Asda, which will see it take on collection services at its facility in Lutterworth. The Group's pipeline of new contracts and extensions of existing agreements remains encouraging.
Wincanton continues to work closely with its customers in taking active steps to address the impact of the shortage of HGV drivers in the UK and to both attract and retain drivers. Closed book transport contracts, particularly in construction and FMCG, have been the most impacted parts of the business, however the Group has made good progress in agreeing rate changes to optimise service levels. A significant majority of Wincanton's contractual arrangements provide mitigation against cost pressures. The recent fuel shortages have not impacted Group profitability.
The Group remains on track to deliver full year profits in line with market expectations, reflecting the combination of strong retail volumes and the rate changes in closed book contracts. The Board remains confident in the future growth opportunities.
The Group will announce its interim results for the six months ended 30 September on 19 November 2021.
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For further information please contact:
Wincanton Plc Tel: +44 12 4971 0000
Tim Lawlor, Chief Financial Officer
Headland Tel: +44 20 3805 4822
Susanna Voyle/ Henry Wallers
E: wincanton@headlandconsultancy.com
Notes to Editors
About Wincanton
Wincanton is a leading British supply chain solutions company. The Group provides business critical services including storage, handling and distribution; high volume eFulfilment; retailer 'dark stores'; two-person home delivery; fleet and transport management; and network optimisation for many of the UK's best known companies.
It is active across a range of markets including food and consumer goods; retail and manufacturing; eCommerce; the public sector; major infrastructure; building materials; fuel; and defence. With almost 100 years' heritage, Wincanton's 20,000-strong team operates from more than 200 sites across the country, utilising 3,500 vehicles.