Become a Member
  • Track your favourite stocks
  • Create & monitor portfolios
  • Daily portfolio value
Sign Up
Add shares to your
quickpicks to
display them here!

Wincanton revenues down in third quarter against tough comparatives

13th Jan 2023 09:52

(Alliance News) - Wincanton PLC on Friday said it continues to trade in line with expectations across all four of its business sectors, but there is a "difficult" financial year ahead.

The Wiltshire, England-based supply-chain and distribution partner for British businesses reported revenue growth of 5.5% for the year-to-date, as its pipeline of business opportunities continues to increase.

The company said revenue for the third quarter was 1.4% lower than a year ago, which it said was expected due to tough comparatives. Wincanton said its grocery & consumer sector fell by 7.0%, while its merchandising sector remained flat, in comparison to "the record highs seen in Q3 FY22".

Wincanton's eFulfilment sector revenue increased by 13.6% in the third quarter, the company said. The growth was driven by new wins including The White Company UK Ltd, City Electrical Factors Ltd and Compagnie de Saint-Gobain SA.

The company said Cygnia Logistics Ltd's performance was robust, but online volumes were below expectations for some customers due to postal strikes and pressure on consumer spending.

Revenue from the company's public & industrial sector decreased 5.8% due to lower volumes in the building materials market, but was partially offset by an increase year-on year of 26% year-to-date in the public sector business.

The company said it expects to report profit in line with market expectations, but that difficult conditions will continue in financial 2024.

Chief Executive Officer James Wroath said: "We remain focussed on driving growth with both new and existing customers; our strong pipeline is critical to Wincanton's ability to negate the challenging external environment that we are facing.

"We continue to make great strides in supporting our technology propositions for customers, including automation and robotics, and this is supporting strong operational delivery across the Group."

Wincanton shares were down 3.0% trading at 330.76 pence per share on Friday morning in London.

By Harvey Dorset, Alliance News reporter

Comments and questions to [email protected]

Copyright 2023 Alliance News Ltd. All Rights Reserved.

FTSE 100 Latest