20th Jan 2021 11:57
(Alliance News) - Wincanton PLC said Wednesday it has seen a continued improvement in revenue and profit since early 2020, when the Covid-19 pandemic hit its supply chain.
Shares in the transport and logistics services firm were 13% higher in London on Wednesday at 306.87 pence each.
Wincanton said its strong performance has been driven by "buoyant" trading revenues across its business.
The firm noted its strong performance means its expects profitability for the current year to be materially ahead of market expectations.
In financial 2020, ended March 31, Wincanton recorded pretax profit of GBP43.8 million.
Wincanton said it returned to profit in the third quarter, which covers the three months to December 31, following a period of "recovery and stabilisation".
Revenue in the third quarter rose by over 10% year on year, with growth in all of its four core business segments.
"The largest increase was in the Digital and eFulfilment sector where revenue was up 40% due to higher demand as customers continue to switch to shopping from home. 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 company said.
It added: "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. Further significant new business in Digital and eFulfilment for both Waitrose and Dobbies, will commence before year-end."
Wincanton said the current lockdown in the UK will not a significant impact on its trading performance.
Chief Executive James Wroath said: "I would like to thank my colleagues for their incredible efforts in delivering a hugely successful third quarter 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."
By Paul McGowan; [email protected]
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