9th Sep 2020 09:59
(Alliance News) - Wincanton PLC on Wednesday said it expects results for the current year to be materially ahead of market expectations amid the combination of improved trading performance, cost cuts, and a recovering UK economy.
The company noted, however, that its assumptions are based on no further Covid-19 impact that will hurt the business.
The stock was trading 13% higher on Wednesday in London at 203.00 pence each.
The logistics company said it has seen a continued improvement in profitability in July and August, with a "particularly strong" performance in Digital & eFulfilment.
Wincanton explained that the Digital & eFulfilment business is benefiting from an increase in demand for online retail, with revenue significantly ahead of pre-Covid-19 levels. Volumes in the home delivery business within this sector have remained high through the summer months.
Performance across the rest of the company was "encouraging", it said, supported by changes to the cost base implemented earlier in the year.
"The balance sheet remains healthy, with strong cash collection and a robust working capital position," Wincanton said in its unscheduled statement Wednesday.
By Evelina Grecenko; [email protected]
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