13th Nov 2019 10:02
(Alliance News) - Wincanton PLC on Wednesday said it is continuing to focus on improvement of its performance and cost management following a 5.3% decline in profit in the first half.
The logistics company reported a pretax profit of GBP28.5 million for the six months to the end of September compared to GBP30.1 million a year earlier, due to an increase in finance costs to GBP4.2 million from GBP2.9 million.
More positively, underlying operating profit increased by 5.6% to GBP28.5 million, boosted by new business wins, the company's continued focus on efficiency and the exit from certain low-margin contracts last year.
Revenue, meanwhile, grew by 1.9% to GBP592.9 million from GBP581.8 million year-on-year, thanks to new contracts with grocers Co-op and Wm Morrison Supermarkets PLC, and breakfast cereal producer Weetabix Ltd.
"Our focus on operational excellence, high quality people, continued innovation and meeting our customers' needs is embedded across the business and drives our healthy performance, as shown in the results announced today," said Chief Executive James Wroath.
Wincanton declared an interim payout of 3.90 pence a share, up 8.3% from 3.60p paid the year before.
"We will continue the disciplined focus on winning more profitable business, maintaining our emphasis on performance improvement and cost management, and I look forward to establishing more opportunities for further growth in the future," added Wroath.
Wincanton shares were trading 4.2% higher in London on Wednesday at 255.36p each.
By Evelina Grecenko; [email protected]
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