Wincanton PLC Q3 TRADING UPDATE (5975M)
January 13 2023 - 2:00AM
UK Regulatory
TIDMWIN
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 GBP62.0m
with range GBP61.4m to GBP62.6m
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
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END
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