Wincanton PLC Trading Update and Notice of Results (7364U)

TIDMWIN

RNS Number : 7364U

Wincanton PLC

02 April 2019

 
 For Immediate Release   2 April 2019

WINCANTON PLC ("Wincanton" or the "Group")

Trading Update

and

Notice of Results

Wincanton, the largest British third party logistics company, today issues the following trading update ahead of announcing its preliminary results for the year ended 31 March 2019.

The Board is pleased to confirm that the full year underlying profits will be in line with expectations.

Wincanton has again delivered a strong operating performance across the Group in the second half of the year, especially during Christmas peak trading in the Retail & Consumer sector. The Group has secured substantial new business wins in the second half of the year, adding new customers including HMRC and Weetabix, as well as additional contract wins with existing customers such as Aggregate Industries and The Co-op.

Revenue for the full year will be lower than last year due to timing of contract awards and the exit from certain low margin contracts. The strong wins achieved in the second half were too late in the year to mitigate the impact from contracts lost at the end of the previous financial year and first half of this year. However, the loss of the low margin contracts has positively contributed to an increase in the Group's operating profit margin in the year.

The Group's performance was further supported by a strong level of contract renewals in the second half with customers such as Asda, Valero and Marley, which together with the new business wins, positions Wincanton well to deliver revenue growth in the year ahead.

The Group's closing net debt is expected to be approximately GBP20m.

The preliminary results for the year ended 31 March 2019 will be announced on 16 May 2019. The Group will be hosting a meeting for analysts at 9.30am at the offices of Buchanan, 107 Cheapside. For further details and registration, please contact Buchanan on wincanton@buchanan.uk.com.

For further information, please contact:

 
 Wincanton plc                    Tel: 01249 710 000 
 Adrian Colman, Chief Executive 
  Officer 
 Tim Lawlor, Chief Financial 
  Officer 
 
 Buchanan (Financial PR)          Tel: 0207 466 5000 
 Richard Oldworth 
 Victoria Hayns 
 Maddie Seacombe                  wincanton@buchanan.uk.com

Notes to Editors

Wincanton plc

Wincanton is the largest British third party logistics company (3PL), providing supply chain solutions to some of the world's most admired brands across a wide range of industries including retail, construction, defence and energy.

As a trusted and respected business partner, we design and implement services and solutions that range from setting up and operating distribution networks through to bonded warehouses, technology hosting, container transport and storage. We strive for operational excellence in everything we do.

We work hard to understand and respond to our customers' needs, build long term relationships and use our skills and expertise to deliver a smarter, added value service, every day. Our customers rely on us to make their businesses operate more efficiently and to gain a competitive advantage in their sector.

Improved stock visibility and availability, reduction of lead times, collaborative warehousing and transport models, and an absolute commitment to continuous improvement, are just some of the reasons why many of our customer relationships extend to more than 20 years.

Key facts:

   --      Annual revenue in the UK & Ireland exceeds GBP1.1 billion 
   --      Over 18,000 colleagues including 4,000+ drivers

-- Operates from 200+ locations with 6.6 million square feet of warehousing across the UK and Ireland

   --      Operating responsibility for around 3,400 vehicles

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END

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