Strong Group performance driven by buoyant trading revenues across the business
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Wincanton has reported an update on its trading performance in the period since its half year results announcement on 05 November 2020. The Group has seen a continued improvement in revenues and profitability since the initial impact of COVID-19 early in 2020 and, following a period of recovery and stabilisation, the Group returned to growth in Q3 of the financial year.
Group revenue rose by over 10.0% in Q3 compared to the prior year, with growth in all of the Group’s four core business segments, reflecting both positive momentum in the delivery of the Group’s strategy and the operational value Wincanton brings to its customers. The largest increase was in the Digital and eFulfilment sector where revenue was up 40.0% due to higher demand as customers continue to switch to shopping from home. Revenue in the Public and Industrial sector has been boosted by strong volumes in construction and the increased utilisation of the Group’s shared transport network.
The Group’s performance has also benefitted from work commencing on a series of recent contract wins. In the public sector, these include a mandate to provide logistics services at a number of Inland Border Clearance Centres and a contract for the storage, order fulfilment and customer delivery of testing kits to priority locations across the UK. Further significant new business in Digital and eFulfilment for both Waitrose and Dobbies, will commence before year-end.
At this stage, the current lockdown is not expected to have a significant impact on the Group’s trading performance. The Group will continue to prioritise the health and safety of its colleagues amid the recent increase in cases of the virus, while ensuring it meets its service commitment to its customers.
The Group’s strong performance means the Board expects profitability for the current year to be materially ahead of market expectations, assuming no unforeseen severe COVID-19 impact in the closing months of the year.