Wincanton ‘resilient in face of challenging macro-economic backdrop’
REVENUES AND profits are down in Wincanton’s interim half year results, but the leading logistics provider says it is operating in line with market expectations.
Revenue was £694.7m in H1 23/24 according to the unaudited results, compared to £753.6m in H1 22/23, a decline of 7.8%. Underlying profit before tax was £22.6m in the same period, compared to £28m the year before, a decline of 19.3%.
The Group says the revenue reduction reflects its ‘strategic shift out of closed book transport contracts and towards digitally enabled 4PL solutions’. Excluding closed book transport contracts, revenue is down 3.7%.
Net capital expenditure was £4.6m (H1 22/23: £7.6m) for expenditure on property, plant, and equipment. This principally consisted of further investment in The WEB, Wincanton’s automated facility in Rockingham.
Wincanton chief executive officer James Wroath, says: “We have delivered a resilient performance during the first half of the year despite a macro-economic backdrop characterised by persistent inflationary pressure, elevated interest rates and weakened consumer confidence. The Group made the decision to exit closed book transport contracts and proactively changed the focus of our business and I am pleased with the progress we have made on those strategic objectives.
“We continue to invest in supply chain automation, transport optimisation and operational excellence. As reflected in our new capital allocation framework and the confidence of the Board, we are maintaining our dividend year on year and returning value to our shareholders through a share buyback programme.
“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.”
