5th Oct 2021 10:34
(Alliance News) - Wincanton PLC has generated strong first half revenue growth despite the impact caused by the shortage of HGV drivers in the UK, the company said Tuesday.
Shares in the transport and logistics services firm were 7.1% higher in London at 354.64 pence each.
Wincanton has seen positive contributions from all four of the group's sectors and particularly from retail customers, the company said in a statement ahead of its half year results for the six months ended September 30.
Progress made in the first half included the securing of a five-year extension to its contract with BAE Systems PLC, which will see Wincanton provide transport, warehousing and inspection services to the aerospace and arms firm.
Wincanton also secured an expanded contract with Asda, which will see it take on collection services at its facility in Lutterworth. The group's pipeline of new contracts and extensions of existing agreements "remains encouraging".
The firm remains on track to deliver full year profit in line with market expectations, Wincanton highlighted.
Wincanton was "working closely" with customers in taking active steps to address the impact of the shortage of HGV drivers in the UK and to both attract and retain drivers. Recent fuel shortages have not impacted profitability.
"The board remains confident in the future growth opportunities," the company said.
Wincanton will announce its interim results on November 19.
By Will Paige; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
BAE SystemsWIN.L