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Wincanton interim profit grows due to contract renewals, ups dividend

15th Nov 2022 11:06

(Alliance News) - Wincanton PLC on Tuesday said profit increased in the first half of its financial year, benefiting from rising sales, and "good" contract renewals and extensions, including IKEA Dartford, Husqvarna and La Doria.

Wiltshire-based Wincanton is a supply-chain and distribution partner for British businesses.

Pretax profit in the half-year that ended on September 30 grew to GBP25.8 million, up 2.8% from GBP25.1 million a year ago.

Revenue increased 9.2% year-on-year to GBP753.6 million from GBP690.3 million, with growth across all sectors.

Wincanton's performance was impacted by volume reductions in the two-person home delivery, retail transport and construction transport markets.

It said open book contracts and the contractual positions in its closed book contracts have protected Wincanton's operating cash flows.

Wincanton declared a 4.4 pence per share interim dividend, up 10% from 4.0p last year.

Looking ahead, Wincanton said it will continue to drive operational efficiencies for both open and closed book contracts to mitigate cost increases.

The firm said it expects to deliver revenue and profit in line with market expectations for 2023, although the growth rate will depend on UK Government spend.

Wincanton shares were up 1.5% to 374.00 pence in London on Tuesday morning.

By Jaskeet Briah; [email protected]

Copyright 2022 Alliance News Limited. All Rights Reserved.

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