19th Nov 2021 11:15
(Alliance News) - Wincanton PLC on Friday reported a significant rise in half-year profit and revenue due to growth in its Digital & eFulfilment division.
In the six months that ended September 30, pretax profit rose 31% to GBP25.1 million from GBP19.1 million a year before, as revenue rose 19% to GBP690.3 from GBP578.7 million.
The Wiltshire-based logistics firm attributed improvement to 58% revenue growth in the Digital & eFulfilment sector due to the acquisition of Cygnia Logistics, a specialist e-commerce and multichannel e-fulfilment provider.
Wincanton opened a second facility in Rockingham in the English Midlands to extend its e-commerce proposition.
Furthermore, a post-pandemic recovery in its Public & Industrial division due to growth in the public sector led to a 33% revenue growth in that division.
Wincanton declared an interim dividend of 4.00 pence, a 40% increase from the 2.85p paid a year before.
The company said it is "on track" to deliver full-year profits consistent with market expectations.
Going forward, Wincanton wants to utilise the platform that the acquisition of Cygnia provided "to drive a step-change in mid-market eFulfilment customers".
"We have delivered a strong set of results in the first half of the year with record levels of growth and positive contributions from all parts of the business," Chief Executive James Wroath commented.
"Importantly, we have also made meaningful progress against our strategic priorities."
Wroath added: "I am particularly pleased that we have delivered this performance notwithstanding the well-documented challenges across the supply chain. We are taking steps to address shortages of labour and we are well-positioned to deal with the cost pressures we are seeing across our markets."
Shares were up 1.6% at 387.00 pence on Friday morning in London.
By Abby Amoakuh; [email protected]
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