Wincanton plc, a supply chain partner for UK business, has issued the following trading update ahead of its half year results for the six months ended 30 September 2022 revealing sustained growth. The Group’s revenue for the first six months was up c.8% (c.6% excluding acquisitions).
This increase was driven by continued volume and new business growth across all four business sectors. The acquisition of Cygnia delivered growth of c.18% in the eFulfilment sector. In our other strategic growth sector, Public & Industrial delivered c.6% revenue growth. Our General Merchandise and Grocery & Consumer sectors grew c.11% and c.4%, respectively.
The strength of Wincanton’s service proposition means the Group continues to win new business, from both new and existing customers. New contracts, such as with Primark, The White Company, MGA, Wickes and DEFRA, contributed significantly to the year-on-year increase in revenue.
The Group continues to manage inflationary pressures across its markets. Approximately 70% of the Group’s contracts remain Open Book, providing a clear mechanism for cost increases to be passed to customers. This is particularly true in the Group’s foundation sectors of General Merchandise and Grocery & Consumer. The Group also continues to take a proactive approach to managing the commercial consequences of cost pressures in its Closed Book contracts.
The balance sheet remains strong, with net debt closing at c.£2m, c.£14.4m improvement on H1 FY22. As a result of the substantial derisking of our pension portfolio, recent LDI volatility has not impacted the funding position of the scheme.
With sustained growth in its strategic markets, the Group expects to deliver financial performance in line with market expectations for FY23. The Board remains confident in the Group’s strategy, underpinned by a strong pipeline of new business across all sectors for FY23 and beyond.
Wincanton will announce its interim results for the six months ended 30 September 2022 on Tuesday, 15 November 2022.