Wincanton revealed in a trading statement today that the plummeting cost of fuel has had “no material impact” on its bottom line, adding that the business continued to trade in line with expectations.
In a statement for the period from 1 October 2014 to today (5 February), the logistics giant said that its contractual arrangements typically pass on fuel price risks to the end customer.
“As fuel costs are mainly a flow through cost for Wincanton, the impact of the recent fall in fuel prices is largely limited to a modest decrease in gross costs and corresponding revenues year-over-year,” it added.
Wincanton’s contract logistics arm had won business with both new and existing customers, while its construction division also saw “good levels of activity”, notably a new five-year contract with Lavendon Group.
In its defence sector work, Wincanton’s contract wins included the extension of its relationship with BAE Systems, securing a new contract for additional on-site logistics and warehousing activities for its maritime operations.
The operator’s specialist business division, comprising containers, Wincanton Records Management and Pullman Fleet Services saw profit performance in line with predictions, however margins “remained under pressure” in the second half of the year for Pullman.
“There has been no significant change to the general financial position of the group from that disclosed in the interim results announcement for the half year ended 30 September 2014,” Wincanton added.
