REG - Wincanton PLC - Trading Update and Notice of Results

WincantonAnnouncement

05/04/2022 07:00

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RNS Number : 2227H  Wincanton PLC  05 April 2022

5 April 2022

Trading Update

And

Notice of Results

Strong Q4 trading and continued progress on strategic delivery

Wincanton plc, a leading supply chain partner for UK business, today issues
the following trading update ahead of its full year results for the year ended
31 March 2022.

 

Highlights

·    Group Q4 revenue is expected to increase +13% on an underlying basis
excluding disposed businesses

·    Excellent growth in strategic focus markets:

o  eFulfilment full year revenue +56% including the acquisition of Cygnia
(+41% excluding acquisition)

o  Public and Industrial full year revenue +18%

·    Credit facilities renewed and increased to support growth strategy

·    On track to deliver profit performance in line with market
expectations(1)

 

Strong Q4 performance with further contract wins and successful mobilisations
for new business

Wincanton has continued to deliver strong revenue growth throughout the
period, with positive contributions from all four of the Group's sectors.
Group revenue is expected to grow by 12% compared to the same quarter last
year, or 13% on an underlying basis excluding the impact of disposals. The
Group continues to perform in line with current market expectations for the
full financial year.

efulfilment is expected to deliver year-on-year growth of 56% for the full
year including the Cygnia acquisition (expected +41% excluding acquisition).
Cygnia has been integrated into the business and the combined business is
generating a healthy pipeline of prospects. Online volumes continue to be
influenced by the public response to the relaxing of pandemic restrictions as
high street sales return, however the medium-term outlook for online
eFulfilment remains strong.

Public and Industrial is expected to show year-on-year growth of 18% for the
full year. In addition to being appointed to run a new DEFRA site within the
Sevington Inland Border Facility, the Group has secured a further contract to
process and store PPE on behalf of the Government. This involves sourcing
330,000sq.ft. of storage space via our innovative shared warehousing platform,
OneVAST warehouse.

Our two retail sectors, Grocery and Consumer and General Merchandise, are
expected to grow revenue year-on-year by a combined 17%.  A key success
during the period has been the mobilisation of the recently secured Primark
contract for the management of all their UK warehouse-to-store transport
logistics. This has involved securing 160 pieces of transport equipment and
the recruitment or transfer of 96 driver colleagues and demonstrates
Wincanton's capability to seamlessly deliver contracts of this scale.

 

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

 

On track to deliver in line with market expectations

Driver and labour shortages have stabilised following the peak activity of the
previous quarter and the Group has been successful in increasing its employed
driver colleagues by 260 to 5360.

Wincanton has reviewed its own supply chains and procurement channels in
response to the conflict in Ukraine and the economic sanctions placed on
Russia. Management will continue to closely monitor key suppliers, though the
Group remains confident its supply channels are robust. Wincanton is largely
protected from the recent increases in fuel prices through the structure of
its contracts, however the Group continues to work closely with customers to
manage these cost pressures.

The Board is confident in the future growth opportunities and is pleased with
the continued progress made against Wincanton's stated strategy.

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

James Wroath, Wincanton's Chief Executive Officer, said:

"Wincanton has delivered a strong final quarter performance, maintaining the
positive momentum we have seen throughout the year and with all four parts of
the business contributing positively to our growth. We continue to deliver
against our strategy, with significant growth in our focus markets of
eFulfilment, public and infrastructure, and we are well placed to capitalise
on the opportunities we have ahead of us in the coming year."

Footnote

(1) Consensus for the year ending 31 March 2022 is adjusted profit before tax
of £56.5m within a range of £55.5million to £57.0million

ENDS

For further information please contact:

Wincanton
Plc
Tel: +44 12 4971 0000

James Clarke, Interim Chief Financial Officer

 

Headland
                                                                                               Tel:
+44 20 3805 4822

Susanna Voyle/ Henry Wallers/Marta Parry-Jones

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

 

Notes to Editors:

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.

It 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 20,000-strong team operates from more than 200 sites across the
country, utilising 3,500 vehicles.

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