REG - Wincanton PLC - Pre-close Trading Update

WincantonAnnouncement

07/03/2023 07:00

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RNS Number : 0711S  Wincanton PLC  07 March 2023

7(th) March 2023

This announcement contains inside information.

 

 

WINCANTON PLC

("Wincanton" or "the Group")

Pre-close trading update

 

Wincanton plc, a leading supply chain partner for UK business, today
provides an update on its trading performance and outlook.

 

Pre-close trading update

 

Ahead of its results for the financial year ended 31 March 2023, the Group
confirms it has continued to trade in line with expectations and anticipates
delivering revenue growth of approximately 3% and profit before tax growth of
over 5%. This financial performance is despite the headwinds of inflation,
labour supply shortages and consumer spending downturn. Working capital, cash
and debt have been managed tightly and the Group forecasts a net cash position
at year end of between £0m and £10m.

 

Contract update and outlook

 

The Group has been notified by HM Revenue and Customs ("HMRC") of its decision
to move to another supplier for the provision of logistics services to support
UK customs arrangements at inland border facilities, following a retendering
process. The contract will be transferred by June 2023. Wincanton is extremely
disappointed to lose this business after a well-executed implementation
delivered in exceptionally shortened timescales and acknowledged strong
performance over the past two years. Wincanton remains a strategic government
commercial partner with major contracts with HMRC, Defra, the Department for
Health and Social Care and the Cabinet Office.

Alongside the loss of this contract, and as previously announced, Wincanton
continues to expect a more challenging external environment in the coming
financial year, including an accelerated reduction in consumer spending and
customer volumes. The combination of these factors will impact financial
performance in FY24. The Group now forecasts a reduced profit before tax for
FY24 materially lower than current market consensus(1).

 

The Group continues to see significant growth opportunities across both the
eFulfilment and Public and Industrial sectors, alongside its resilient and
high-performing foundation sectors: General Merchandise and Grocery and
Consumer. Additionally, Wincanton is continuing with its development of
technology for both warehouse automation and Transport Control Towers to
significantly increase the value the business creates for both its customers
and shareholders over the medium term. The Group remains confident in its
strategy and its ability to deliver sustainable growth.

 

 

 Notes:
 1.  based on current Company compiled market consensus PBT for FY24 of £63m

 

-Ends-

 

For further information please contact:

 Wincanton plc                                     Tel: +44 1249 710 000
 James Wroath, Chief Executive Officer
 Tom Hinton, Chief Financial Officer

 Headland                                          Tel: +44 20 3805 4822
 Susanna Voyle / Henry Wallers
 E: wincanton@headlandconsultancy.com
 (mailto:wincanton@headlandconsultancy.com)

 

About Wincanton

Wincanton is a leading British supply chain solutions company. The Group
provides business critical services including storage, handling and
distribution; high volume efulfilment; retailer 'dark stores'; two-person home
delivery; fleet and transport management; and network optimisation for many of
the UK's best-known companies.

 

The Group is active across a range of markets including food and consumer
goods; retail and manufacturing; eCommerce; the public sector; major
infrastructure; building materials; fuel; and defence. With almost 100 years'
heritage, Wincanton's 20,300-strong team operates from more than 170 sites
across the country, responsible for 8,500 vehicles.

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