Wincanton PLC Pre-close Trading Update (0711S)
March 07 2023 - 1:00AM
UK Regulatory
TIDMWIN
RNS Number : 0711S
Wincanton PLC
07 March 2023
7(th) March 2023
This announcement contains inside information.
WINCANTON PLC
("Wincanton" or "the Group")
Pre-close trading update
Wincanton plc, a leading supply chain partner for UK business,
today provides an update on its trading performance and
outlook.
Pre-close trading update
Ahead of its results for the financial year ended 31 March 2023,
the Group confirms it has continued to trade in line with
expectations and anticipates delivering revenue growth of
approximately 3% and profit before tax growth of over 5%. This
financial performance is despite the headwinds of inflation, labour
supply shortages and consumer spending downturn. Working capital,
cash and debt have been managed tightly and the Group forecasts a
net cash position at year end of between GBP0m and GBP10m.
Contract update and outlook
The Group has been notified by HM Revenue and Customs ("HMRC")
of its decision to move to another supplier for the provision of
logistics services to support UK customs arrangements at inland
border facilities, following a retendering process. The contract
will be transferred by June 2023. Wincanton is extremely
disappointed to lose this business after a well-executed
implementation delivered in exceptionally shortened timescales and
acknowledged strong performance over the past two years. Wincanton
remains a strategic government commercial partner with major
contracts with HMRC, Defra, the Department for Health and Social
Care and the Cabinet Office.
Alongside the loss of this contract, and as previously
announced, Wincanton continues to expect a more challenging
external environment in the coming financial year, including an
accelerated reduction in consumer spending and customer volumes.
The combination of these factors will impact financial performance
in FY24. The Group now forecasts a reduced profit before tax for
FY24 materially lower than current market consensus(1) .
The Group continues to see significant growth opportunities
across both the eFulfilment and Public and Industrial sectors,
alongside its resilient and high-performing foundation sectors:
General Merchandise and Grocery and Consumer. Additionally,
Wincanton is continuing with its development of technology for both
warehouse automation and Transport Control Towers to significantly
increase the value the business creates for both its customers and
shareholders over the medium term. The Group remains confident in
its strategy and its ability to deliver sustainable growth.
Notes:
based on current Company compiled market consensus PBT
1. for FY24 of GBP63m
-Ends-
For further information please contact:
Wincanton plc Tel: +44 1249 710
000
James Wroath, Chief Executive Officer
Tom Hinton, Chief Financial Officer
Headland Tel: +44 20 3805
4822
Susanna Voyle / Henry Wallers
E: wincanton@headlandconsultancy.com
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.
The Group 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 20,300-strong
team operates from more than 170 sites across the country,
responsible for 8,500 vehicles.
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END
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