Wincanton has reported continued improvement in revenues and profitability since the initial impact of the pandemic and, following a period of recovery and stabilisation, said it had returned to growth in Q3 of the financial year.
In an update today (20 January) on its trading performance in the period since its half-year results announcement on 5 November 2020, it said group revenue rose by over 10% in Q3 compared to the prior year with growth in all four core business segments.
The board expects profitability for the current year to be materially ahead of market expectations, assuming no unforeseen severe Covid-19 impact in the closing months of the year.
The largest increase was in the digital and e-fulfilment sector where revenue was up 40%. This was due to higher demand as customers continue to switch to home shopping, it said.
Further significant new business in digital and e-fulfilment for both Waitrose and Dobbies will commence before year-end.
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Revenue in the public and industrial sector has been boosted by strong volumes in construction and the increased utilisation of the group’s shared transport network.
The group’s performance has also benefitted from work commencing on a series of recent contract wins. In the public sector, these include a mandate to provide logistics services at a number of inland border clearance centres and a contract for the storage, order fulfilment and customer delivery of testing kits to priority locations across the UK.
The update added that the current lockdown is not expected to have a significant impact on Wincanton's trading performance. It will continue to prioritise the health and safety of its colleagues amid the recent increase in cases of the virus, while ensuring it meets its service commitment to its customers.
Commented Wincanton chief executive James Wroath: “I would like to thank my colleagues for their incredible efforts in delivering a hugely successful Q3 and Christmas period, despite the ongoing challenges of Covid-19. The strong performance of our underlying business and the new contracts we are implementing in our strategic growth markets are clear evidence that we are delivering on our strategy even in the difficult current climate.”