Wincanton reports 15% revenue rise and says full-year profits will exceed expectations

Wincanton saw strong trading across all its business sectors and high demand for its services between September and December and now expects full-year profits to exceed market expectations.

Group revenue grew by 15% compared to the same period in 2020, with turnover in its digital and e-fulfilment sector soaring by 51%, which the logistics giant said was driven by the acquisition of e-commerce specialist Cygnia last September.

It said Cygnia’s integration was progressing well, but online volumes for some customers were affected by “a higher than expected proportion of high street sales around Black Friday”.

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Wincanton’s two-person home delivery business put in a strong performance, although the company said volumes were down slightly compared to the same quarter the previous year.

Revenues in its grocery and consumer division increased by 19% in Q3 compared to 2020 and in general merchandise quarterly revenue grew by 9%.

It cited a new contract win during the quarter with the department for environment, food and rural affairs to operate an inland border control post in Kent to manage biosecurity checks on goods entering the UK from the EU.

Looking ahead, James Wroath, Wincanton chief executive, said the business was on the right track: “We are maintaining our relentless focus on the delivery of our strategy, with innovation and new technologies driving growth throughout the business,” he said.