REG - Wincanton PLC - Q3 Trading Update

WincantonAnnouncement

17/01/2024 07:00

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RNS Number : 8742Z  Wincanton PLC  17 January 2024

17 January 2024

LEI: 213800Z5WTW8QKOHWQ82

 

 

Wincanton plc

("Wincanton" or the "Group")

 

Q3 Trading Update

Trading in line with market expectations

 

Wincanton, a leading supply chain partner for UK business, today announces an
update on trading for its third quarter (Q3) ending December 2023, which
includes the seasonal retail peak.

Summary:

·    The Group continues to trade in line with market expectations. 1 
(#_ftn1)

 

·    Total Q3 revenue increased by 1.3% year-on-year, reflecting growth in
core activities (+5.0%) and the continued progress in exiting closed book
transport.

 

·    Seamless operational performance for retail customers over the
seasonal peak.

 

Q3 revenue grew by 1.3% year-on-year despite a challenging trading environment
and the Group's continued exit from closed book transport contracts. Revenue
from core activities 2  (#_ftn2) grew by 5.0% year-on-year as the Group made
progress in balancing the contract mix towards commercially protected
agreements with reduced volume exposure.

The Group's foundation sectors delivered a strong Q3. Grocery & Consumer
revenue was up 2.9% year-on-year driven primarily by the Group's major open
book transport partnership with Sainsbury's. General Merchandise delivered
revenue growth of 3.7% reflecting the impact of new contracts with New Look
and Segen.

eFulfilment revenue grew 8.1% year-on-year driven by the strong performance of
IKEA, Wickes and The White Company contracts. Public & Industrial revenue
was 11.9% lower against a strong prior year comparator, reflecting the impact
of the previously announced HMRC contract loss. This was partially offset by a
strong performance with defence and industrial customers, notably EDF, British
Salt and BAE Systems operations.

The Board expects the Group to report profit for the current financial year in
line with market expectations. In a challenging macro-economic environment,
Wincanton's deep customer partnerships, focus on open book contracts and
robust control of costs continues to deliver value for all stakeholders.

 

James Wroath, Chief Executive Officer of Wincanton, said:

"Wincanton plays a crucial role at the heart of UK supply chains; this is
never more apparent than during the seasonal peak trading period for our
retail customers. I would like to thank all my colleagues for their hard work
and dedication during this exceptionally busy period.  We remain focused on
being Britain's best supply chain partner and on the opportunity to deploy
technology to deliver transformational value for our customers and
shareholders. The macro-economic environment remains uncertain as we move into
2024 but we are confident our strategy and strong financial position provides
an excellent foundation for growth and continued strategic delivery in 2024."

 

-Ends-

 

For further information please contact:

 Wincanton plc                                     Tel: +44 1249 710 000
 James Wroath, Chief Executive Officer
 Tom Hinton, Chief Financial Officer

 Ezra Bigland, Investor Relations Manager

 Headland                                          Tel: +44 20 3805 4822
 Susanna Voyle / Henry Wallers
 E: wincanton@headlandconsultancy.com
 (mailto:wincanton@headlandconsultancy.com)

 

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.

 

The Group 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 20,300-strong team operates from more than 170 sites
across the country, responsible for 8,500 vehicles.

 

 1  (#_ftnref1) Market consensus is £50.5m PBT for FY24

 2  (#_ftnref2) Sector revenues excluding closed book transport: eFulfilment
+7.6%, Grocery & Consumer +11.4%, General Merchandise +4.0% and Public
& Industrial -10.0%

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