2nd Apr 2019 11:08
LONDON (Alliance News) - Logistics firm Wincanton PLC said Tuesday it expects its annual underlying profit to be in line with expectations after a strong second half performance.
For the financial year that ended on Sunday, Wincanton expects revenue to be lower than the GBP1.17 billion reported the year prior due to the timing of contract awards as well as its exit from low-margin contracts.
Wincanton expects full-year underlying profit to be in line with expectations. For the financial year ended March 2018, the firm reported GBP52.9 million in underlying operating profit and GBP46.4 million in pretax profit.
Wincanton emphasised the second half of the year had delivered a "strong operational performance", especially during the peak Christmas trading period.
The firm has also secured "substantial" new contracts in the second half of the year with UK tax collector HM Revenue & Customs and cereal maker Weetabix. Existing customers - including Aggregate Industries and the Co-operative Group - also signed new deals with Wincanton.
These "strong wins", however, were too late in the year to offset contracts lost at the end of the financial year prior and in the first have. Despite this, margins were helped by the exit from low-margin business.
Debt at the end of March is expected to be about GBP20 million.
Shares in Wincanton were 2.2% lower at Tuesday. Wincanton expects to announce its annual results on May 16.
Related Shares:
WIN.L