• Swindon & Wiltshire News
• Thursday November 9 2023
• Author Name: Peter Davison

Logistics firm Wincanton reports drop in profits and revenue

Profits and revenue at Wiltshire-based logistics firm Wincanton dropped in the six months to September, investors were told today (Thursday).

The Chippenham-based firm blamed “persistent inflationary pressure, elevated interest rates and weakened consumer confidence” for the dip.

Pretax profits stood at £22.6 million – almost twenty per cent lower than the £28 million reported a year ago.

Revenue was down seven per cent to £694 million.

Looking ahead, bosses reported “significant growth” in open book managed transport services, with contracts signed by Sainsbury’s, New Look, and Primark.

Wincanton reported a total sales pipeline of £1.5 billion, which it said reflected “the scale of organic opportunity” in the logistics market.

CEO James Wroath said: “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.”