Logistics firm stays on track despite tough economic conditions
Logistics firm Wincanton said trading is in line with expectations despite the tough market conditions.
The Wiltshire firm has released a trading for its third quarter ending December 2023, which includes the seasonal retail peak.
Wincanton said 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 grew by 5% year-on-year as the group made progress in balancing the contract mix towards commercially protected agreements with reduced volume exposure.
Wincanton’s foundation sectors delivered a strong third quarter.
Grocery and 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.
Online revenue grew 8.1% year-on-year driven by the strong performance of IKEA, Wickes and The White Company contracts.
Public and 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 economic environment, Wincanton said its deep customer partnerships, focus on open book contracts and robust control of costs continues to deliver value for all stakeholders.
Chief executive James Wroath 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.”
