REG - Wincanton PLC - Q3 TRADING UPDATE

WincantonAnnouncement

13/01/2023 07:00

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RNS Number : 5975M  Wincanton PLC  13 January 2023

13 January 2023

Wincanton plc

 

("Wincanton" or the "Group")

 

 Q3 TRADING UPDATE

Robust trading in a challenging external environment

 

Wincanton plc, a leading supply chain partner for UK business, today
announces an update on its third quarter (Q3) trading performance, including
the seasonal retail peak activity.

 

The Group has continued to trade in line with expectations across all four
business sectors. Year-to-date, we have delivered encouraging revenue growth
of 5.5% and the pipeline of new business opportunities continues to increase.

 

As expected, Group revenue for Q3 was lower year-on-year by 1.4% against tough
comparatives. The Group's Grocery & Consumer sector fell by 7.0% whilst
the General Merchandise sector remained broadly flat (+0.6%), both in
comparison to the record highs seen in Q3 FY22.

 

Our eFulfilment sector revenue increased by 13.6% in the third quarter driven
by new wins including The White Company, City Electrical Factors and Saint
Gobain, where operations commenced earlier in the year. While the performance
in Cygnia remains robust, recent postal strikes and pressure on discretionary
consumer spending meant that online volumes were below expectations for some
customers.

 

Revenue from our Public & Industrial sector decreased by 5.8%, mainly due
to lower volumes across the building materials market and contract attrition.
However, this was partially offset by growth in our public sector businesses,
which has increased year-on-year by 25.5% YTD. The Group continues to support
HMRC at various inland border clearance facilities together with ongoing
activities for Defra.

 

Over the last nine months, the UK's economic, political, and labour
environments have been particularly challenging, impacting both our top-line
growth trajectory and our underlying cost base. We expect these difficult
conditions to continue in FY24. Despite the volatility and headwinds in the
external environment, our diversified customer base continues to offer
resilience and the Board expects the Group to report profit for the current
year (FY23) in line with market expectations(1).

 

 

James Wroath, Chief Executive Officer of Wincanton, said:

 

"I would like to thank all my colleagues for their hard work and commitment,
which has been so important to our performance over the festive period and
throughout Q3 trading. We remain focussed on driving growth with both new and
existing customers; our strong pipeline is critical to Wincanton's ability to
negate the challenging external environment that we are facing. We continue to
make great strides in supporting our technology propositions for customers,
including automation and robotics, and this is supporting strong operational
delivery across the Group."

 

 

(1) Analyst consensus for FY23 profit before tax of £62.0m with range £61.4m
to £62.6m

 

For further information please contact:

 

Wincanton
Plc
Tel: +44 12 4971 0000

James Wroath, Chief Executive Office

Tom Hinton, Chief Financial Officer

 

Headland
                                                                                               Tel:
+44 20 3805 4822

Susanna Voyle/ Henry Wallers/ Marta Parry-Jones

E: wincanton@headlandconsultancy.com
(mailto:wincanton@headlandconsultancy.com)

 

 

 

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