Logistic operator Wincanton expects to finish its financial year to 31 March with profits ahead of market expectations, highlighting continuing strong performance, additional eCommerce capacity, and new contracts with B&Q, Snug, Heineken and Kelkay.
Wincanton has already repaid the £5.8 million of Government support it received under the Coronavirus Job Retention Scheme (CJRS).
In its latest trading update, the company has reported a 15 per cent increase in its underlying revenue in the fourth quarter, with growth across all four sectors.
Wincanton’s digital and eFulfilment division is set to deliver around 40 per cent year-on-year growth.
A ‘ramp-up of public sector activity’, including the storage and distribution of Covid-19 testing kits, has helped its public and industrial division achieve year-on-year growth of around 10 per cent.
The grocery and consumer goods division has grown around 3 per cent, against what Wincanton calls a challenging year-on-year comparison (as Q4 of 2019/2020 saw widely-reported panic buying at the start of the Covid-19 pandemic).
While the ‘general merchandise’ division, which has grown around 28 per cent this quarter, has benefited from consistent demand during the recent lockdown, it says, particularly for DIY products.
To support and grow its high-volume eCommerce work, Wincanton has agreed an initial three-and-a-half year lease on a 528,000 square foot automated distribution hub in Rockingham, Northamptonshire. The site, which will serve B&Q and Snug, among others, is the group’s second and largest multi-user eFulfilment centre.
James Wroath, chief executive officer of Wincanton, said: “Wincanton has delivered another strong performance, maintaining our positive momentum throughout the final quarter of the year. Our people have met the challenges associated with operating in another lockdown and it is very satisfying to see all four parts of the business in growth and contributing positively to the Group.
“We are also delighted to have expanded our eFulfilment capabilities and capacity further with our new site in Rockingham. This serves as a marker of our ambitions to capitalise on the growth opportunities presented by the increasing prominence of online retail.”
Wincanton is to announce its full year results on 20 May.
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