Logistics business Wincanton plc has announced a decline in half year sales and profit although trading was ‘in line with market expectations’.
According to its half year results for the six months ended 30 September 2023, total sales fell 7.8% to £694.7m from £753.6m in 2022.
Underlying EBITDA resulted at £48.4m, down 15.7% from £57.4m, while pre-tax profit stood at £19.1m, also down by 26% from £25.8m.
Wincanton, which provides services for furniture retailers including Loaf, Dwell, DFS, IKEA, The White Company and more recently The Conran Shop, said that revenue reduction reflected the Group’s strategic shift out of closed book transport contracts and towards digitally enabled 4PL solutions.
The group added: “New business growth including our expanded partnership with Ikea, The White Company and Wickes home delivery have more than offset volume declines seen in two-person home delivery and high-volume eFulfilment.
“The Group remains on track to deliver full year profits consistent with market expectations. The pipeline for our strategic markets continues to grow. The Board is particularly encouraged by the sales pipeline, future growth opportunities and the business’ ability to pass inflationary cost pressures to its customers through its contractual structures.”
James Wroath, Chief Executive Officer of Wincanton commented: “We have delivered a resilient performance during the first half of the year despite a macro-economic backdrop characterised by persistent inflationary pressure, elevated interest rates and weakened consumer confidence. The Group made the decision to exit closed book transport contracts and proactively changed the focus of our business and I am pleased with the progress we have made on those strategic objectives.
“We continue to invest in supply chain automation, transport optimisation and operational excellence. As reflected in our new capital allocation framework and the confidence of the Board, we are maintaining our dividend year on year and returning value to our shareholders through a share buyback programme.
“Our people are the bedrock of our business and I would like to thank our 20,000+ colleagues, who continue to provide exceptional service to our customers and deliver supply chain value every day.”
