Wincanton has reported continued profitability in July and August with particularly strong performance in digital and e-fulfilment.
In a summary of its performance since its AGM trading update on 22 July 2020, the group said it was benefiting from an increase in demand for online retail, with revenue significantly ahead of pre-Covid-19 levels.
Volumes in the two-person home delivery business have remained high through the summer months. Furthermore, operational efficiencies in digital and e-fulfilment have led to an improvement in operating margins.
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The company said performance across the rest of the group also remained encouraging, supported by changes to the cost base implemented earlier in the year in the face of challenging external conditions.
The balance sheet remains healthy, with strong cash collection and a robust working capital position.
Given the combination of Wincanton’s improved trading performance, cost intervention measures and the recovering economy, the board confirmed that results for the current year are materially ahead of market expectations. This continues to assume that there is no further impact on the business from Covid-19.
