Wincanton: profitability impacted by COVID-19 but strong growth in digital & e-fulfilment
British third-party logistics company, Wincanton plc, has announced its half year results for the six months ended 30 September 2020.
First half performance underpinned by Digital & e-fulfilment growth (+15.7%) from increased demand
for online retail
key figures
• Underlying profit before tax of £19.1m (2019: £26.2m) delivered in face of unprecedented disruption
caused by COVID-19
• Strong improvement in cash to deliver net cash of £63.3m (2019: net debt of £(14.8m), driven by
good working capital management and deferral of VAT, corporation tax and pension payments
• Agreement on 2020 pension triennial reached with trustees, significantly reducing pension risk and
negating need for planned £6m increase in contributions
• Good momentum into H2 – results for FY20/21 expected to be materially ahead of current market
expectations assuming no further severe impacts from COVID-19
• Dividend payments resumed following COVID-19-related suspension earlier in the year, with an
interim dividend of 2.85p (2019: 3.90p) to be paid in January 2021
James Wroath, Wincanton Chief Executive Officer commented: “Wincanton has demonstrated agility, innovation and commitment to meet the critical supply chain needs of
customers and consumers throughout the country. I am proud of how our team has responded to the challenge that COVID-19 has brought to our markets. The current environment strengthens our conviction that we are following the right strategy. The steps we have taken to refocus the Group on growth markets, including disposing of our Pullman fleet services and our containers business, will underpin our ongoing performance.
“I am greatly encouraged by the new contracts we have secured so far this year to become a key partner for some of Britain’s biggest brands and public bodies, and we continue to see a healthy pipeline of new opportunities coming to market. Performance has been resilient in the first half, we expect the good momentum with which we end the period to continue and consequently expect results for current year to be materially ahead of market expectations.”
