Wiltshire-based logistics giant Wincanton has reported a dip in revenue and profit, amid “persistent inflationary pressure, elevated interest rates and weakened consumer confidence”.
The supply chain manager, which is based in Chippenham, reported an underlying pre-tax profit of £22.6m for the first half of its financial year, down by almost 20% from £28m a year earlier. Revenue also fell 7% to £694m during the six months to September.
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Bosses at the London-listed firm - which serves clients across sectors such as retail, dairy and fuel - said the drop was in line with expectations and reflected the group's strategic shift out of closed book transport contracts towards digitally enabled fourth party logistics solutions, with the firm continuing to invest in automation across its operations.
The board reported “significant growth” in open book managed transport services, securing new contracts with retail giants Sainsbury's New Look and Primark. Further new business was secured with renewables distributor Segen, airline Jet2 and homeware retailer The Conran Shop, as well as key renewals with customers such as LVMH Group-owned Sephora and Williams Sonoma.
The business reported a total sales pipeline of £1.5bn, which it said reflected “the scale of organic opportunity” in the logistics market.
Chief executive James Wroath said the company had delivered “a resilient performance” amid a challenging macroeconomic backdrop, adding: "Our people are the bedrock of our business and I would like to thank our 20,000+ colleagues, who continue to provide exceptional service to our customers and deliver supply chain value every day."
Wincation said it expected retail volume pressure to persist in the near-term, but due to the diversity of sectors it serves, it was “well positioned” to deliver on its strategic ambitions.
The board proposed an interim dividend of 4.4p, at the same level as prior year.
