Wincanton hit by decline in volumes

Wincanton has warned that a decline in customers’ volumes and a reduced demand for warehousing will “adversely affect” the business in the next 12 months.

In a trading update issued today (Tuesday 3 April), the group says that while it has successfully retained and won new contracts across all sectors, market conditions in retail, FMCG and containers have been challenging.

It adds that a number of its customers are seeing a decline in volumes, which is resulting in reduced demand for warehousing.

However Wincanton says its Pullman Fleet Services division, as well as records management for the construction and defence sectors, are performing strongly.

The group says it plans to “enhance its existing service offering”, committing resources to developing more flexible, advanced services to improve customers’ supply chain performance.

Eric Born, Wincanton chief executive, says: "Our focus remains on stabilising and maximising opportunities in the core business whilst developing product solutions that will provide profitable growth in the future and enable us to further reduce our average net debt."

Wincanton disposed of its 20% share in Culina Logistics last month for £11m in a bid to reduce its debt; this follows the sale of its mainland European division last year for £39m, leaving it focused on its UK and Ireland activities.

The company will announce its full year results on 14 June.