Logistics firm profits hit by inflation and weak consumer confidence

Logistics firm Wincanton saw profits fall by just under 20 per cent to £22.6m over the last six months.

The Wiltshire saw revenues fall by 7.8 per cent to £694m. The company said that trading was in line with expectations.

The company added that added that the strategic reorganisation of transport is being delivered at pace with focussed investment on digitally enabled services.

Chief executive James Wroath said: “We have delivered a resilient performance during the first half of the year despite a macro-economic backdrop characterised by persistent inflationary pressure, elevated interest rates and weakened consumer confidence.

“The group made the decision to exit closed book transport contracts and proactively changed the focus of our business and I am pleased with the progress we have made on those strategic objectives.

“We continue to invest in supply chain automation, transport optimisation and operational excellence. As reflected in our new capital allocation framework and the confidence of the Board, we are maintaining our dividend year on year and returning value to our shareholders through a share buyback programme.

“Our people are the bedrock of our business and I would like to thank our 20,000+ colleagues, who continue to provide exceptional service to our customers and deliver supply chain value every day.”

The company said it expects retail volume pressure to persist in the near-term, reflecting the challenging macro-economic backdrop.

Despite this, the group said its diversified sectors, commercial discipline, and customer relationships ensure that Wincanton is well positioned to deliver on its strategic ambitions.