Wincanton delivers strong growth with profits ahead of pre-pandemic levels
Wincanton plc, a supply chain partner for UK business, today announces its preliminary results for the year ended 31 March 2022.
Financial highlights
- Full year revenue up 16.3% to £1,421.4m; 19.4% organic revenue growth excluding disposals and Cygnia Logistics acquisition in September 2021
- Underlying profit before tax up 23.1% to £58.1m (2021: £47.2m), an increase of 10.0% on pre-pandemic levels (2020: £52.8m)
- Inflationary headwinds mitigated by management actions on costs and contract mix; less than 30% of Group revenue from closed book contracts
- Strong cash focus maintained; closing net cash of £3.7m (2021: net cash of £11.9m); free cash flow generated from operating activities offset by acquisition spend
- Final dividend of 8.0p recommended (2021: 7.5p), taking full year dividend to 12.0p per share (2021: 10.35p)
Operational highlights
- Growth achieved across all four sectors:
o eFulfilment proposition strengthened by successful integration of Cygnia Logistics and investment in automation and innovation in Nuneaton and The WEB, Rockingham
o Public & Industrial boosted by contract wins and renewals with HMRC, DHSC and Defra, and growth in defence through new work with BAE Systems and Alstom
o Grocery & Consumer saw record volumes, while General Merchandise operations strengthened by automation and robotics solutions for the Kingfisher Group including Screwfix
- Positive progress on recruitment: fast-track driver training scheme, increased investment in apprenticeships and creation of labour campus to improve retention and operational effectiveness
- Achieved carbon neutrality for premium home delivery services; working towards new targets for Wincanton-owned non-transport operations by 2025
Outlook
- Wincanton is well positioned to maintain its positive performance across its chosen markets, driven by ongoing investment in the business and continued progress against our strategy
- While the Group remains mindful about the macro-economic headwinds and the potential impact on consumer sentiment, there is good momentum in the new business pipeline and we are confident in the future growth opportunities across all four of our sectors and in our continued ability to deliver our strategy successfully
James Wroath, Chief Executive Officer, said: “Wincanton has delivered another strong set of results, with growth across all four sectors leading to a substantial increase in revenue and profit ahead of pre-pandemic levels. The core foundation sectors of Grocery & Consumer and General Merchandise continue to be a source of strength for the Group, and we have made significant progress in our focused growth markets of Public & Industrial and eFulfilment.
We have invested behind our strategy, particularly in eCommerce with the successful integration of Cygnia Logistics and the eFulfilment capacity created at The WEB, Rockingham. We continue to develop automation solutions and robotic technologies to create supply chains that are efficient, agile and resilient. This approach, coupled with Wincanton’s longstanding reputation for high quality service delivery enabled us to secure a number of high-profile new contracts and extensions.
I want to thank all our people who have driven this performance through their relentless attention on delivering for our customers in what were often challenging operating conditions. While mindful about the macro-economic headwinds facing our sector, we are confident in the growth opportunities we have ahead of us and in our continued ability to deliver our strategy successfully.”
