16th May 2019 10:50
LONDON (Alliance News) - Wincanton PLC on Thursday said its revenue in its most recently ended financial year was hurt by loss of contracts, while profit benefited from cost reduction.
The logistics company reported pretax profit growth of 28% to GBP48.6 million in the year to the end of March from GBP37.9 million the year earlier, despite revenue slipping by 2.6% to GBP1.14 billion from GBP1.17 billion.
"Revenue performance overall in the year was impacted by the loss of certain contracts at the end of the previous financial year and the first half of this year," explained Chief Executive Adrian Colman.
Underlying operating profit increased by 4.5% to GBP55.3 million, benefiting from "strong" operational performance, Wincanton said, as well as the impact of ongoing performance improvement initiatives implemented in the previous year.
In addition, the "positive" actions taken last year to address the cost base have made the company more competitive in bidding, winning and retaining business, it said.
"In the second half of the year we secured substantial new contract wins that should position the group well in the coming periods," continued Colman. "We will continue to develop our market-leading capabilities to enhance our excellent customer service and operational delivery, enabling us to make further progress in the years ahead."
Wincanton increased its final dividend to 7.29p per share from 6.63p paid the year ago, bringing the total dividend for the year to 10.89p, up 10% year-on-year.
The stock was trading 2.5% higher on Thursday at 262.48p a share.
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