Wincanton Delivers ‘Solid Quarterly Performance’

Wincanton plc, a supply chain partner for UK businesses, today publishes the following business update ahead of its annual results for the financial year ending March 31, 2022.

Strong points

  • Group Q4 revenue expected to grow +13% on an underlying basis excluding divested businesses
  • Excellent growth in strategic target markets:
    • Full-year eFulfilment revenue +56% including Cygnia acquisition (+41% excluding acquisition)
    • Full-year public and industrial revenue +18%
  • Renewed and expanded credit facilities to support growth strategy
  • On track to generate earnings performance in line with market expectations1

Solid performance in the fourth quarter with new contracts won and successful mobilizations for new business

Wincanton continued to deliver strong revenue growth throughout the period, with positive contributions from all four Group segments. Group revenue is expected to grow 12% compared to the same quarter last year, or 13% on an underlying basis excluding the impact of divestments. The Group continues to post performances in line with current market expectations for the full year.

e-fulfilment is expected to generate annual growth of 56% for the full year, including the acquisition of Cygnia (expected +41% excluding acquisition). Cygnia has been integrated into the business and the combined business is generating a healthy pipeline of leads. Online volumes continue to be impacted by public response to the easing of pandemic-related restrictions with the return of high street sales, but the medium-term outlook for online e-execution remains strong.

The public and industrial sector should post an annual growth of 18% for the whole year. As well as being appointed to manage a new DEFRA site within the Sevington Inland Border Facility, the group has been awarded another contract to process and store PPE on behalf of the government. This involves sourcing 330,000 square feet. of storage space via our innovative shared warehousing platform, the OneVAST warehouse.

Our two retail segments, Grocery and Consumer & General Merchandise, are expected to grow revenue year-over-year by a combined 17%. A key success during the period was the mobilization of the recently won Primark contract to manage all of their warehouse-to-store transport logistics in the UK. This involved securing 160 pieces of transportation equipment and hiring or transferring 96 fellow drivers and demonstrates Wincanton’s ability to seamlessly execute contracts of this scale.

Wincanton has successfully signed the renewal of its credit facilities for a further four years to March 2026 and has extended this commitment up to £175m. This financing will be available to support the continued implementation of the Group’s growth strategy.

On track to deliver in line with market expectations

Driver and labor shortages stabilized after the peak of activity in the previous quarter and the Group managed to increase the number of its fellow drivers employed from 260 to 5,360.

Wincanton has reviewed its own supply chains and supply channels in response to the conflict in Ukraine and the economic sanctions imposed on Russia. Management will continue to closely monitor key suppliers, although the Group remains convinced that its supply channels are solid. Wincanton is largely insulated from recent fuel price increases through its contract structure, but the Group continues to work closely with its customers to manage these cost pressures.

The Board of Directors is confident in future growth opportunities and is pleased with the continued progress against Wincanton’s announced strategy.

The Group will announce its annual results for the year ended March 31, 2022 on May 20, 2022.

Wincanton CEO James Wroath said: “Wincanton delivered a strong performance last quarter, maintaining the positive momentum we have seen throughout the year and all four parts of the business contributing positively to our growth. We continue to deliver on our strategy, with significant growth in our target eFulfilment, audience and infrastructure markets, and we are well positioned to capitalize on the opportunities before us in the year ahead. .

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