17th Jun 2020 10:37
(Alliance News) - Wincanton PLC on Wednesday said its performance deteriorated sharply since April due to coronavirus after reporting "strong growth" in its recently-ended financial year.
The logistics company reported a decline in pretax profit to GBP43.8 million for the year to the ed of March compared to GBP48.6 million a year ago.
The company recorded non-underlying items - which include Covid-19-related impairments, net profit on disposal of freehold property, and professional fees in relation to acquisitions - of GBP9.0 million versus GBP700,000 a year prior.
Underlying pretax profit growth was 7.3% to GBP52.9 million.
Wincanton's revenue, meanwhile, grew by 5.2% to GBP1.20 billion from GBP1.14 billion year-on-year. Growth was driven by new business in the year, the company explained, including transportation and vehicle maintenance services contract with Morrisons and contracts with Wickes, Dwell and Sofa Club.
Looking ahead, Wincanton said year-to-date revenue is down 10% on the prior year, with negative impact on profitability mostly in closed book contracts, but May revenue up 7% from April.
The Chippenham, England-headquartered company said it has taken financial measures to mitigate short-term impacts of Covid-19, including suspending its final dividend.
"Wincanton delivered another year of strong performance in financial 2020, since when the Covid-19 crisis has created significant challenges for the group and our customers. The measures we have implemented have ensured great service has continued during the crisis period and opportunities for future growth have continued to emerge. Furthermore, profitability continues to recover as our sectors return towards normal levels of activity," said Chief Executive James Wroath.
He added: "We remain on course for what I anticipate will be an exciting next phase of growth and achievement for Wincanton as a result of the huge commitment of our staff and our disciplined approach."
Wincanton shares were trading 4.3% higher in London on Wednesday at 193.00 pence each.
By Evelina Grecenko; [email protected]
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