Wincanton PLC Pre-close Trading Update (0711S)

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: [phone] 
                                          000 
 James Wroath, Chief Executive Officer 
 Tom Hinton, Chief Financial Officer 
 
 Headland                                Tel: [phone] 
                                          4822 
 Susanna Voyle / Henry Wallers 
 E: [e-mail] 
 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTMZGGFLVMGFZM

(END) Dow Jones Newswires

March 07, 2023 02:00 ET (07:00 GMT)