Wincanton loses HMRC contract, issues profit warning

Logistics firm Wincanton has issued a warning to investors after losing a major contract with HMRC.

The Chippenham-based group said this morning (Tuesday) that it was "very disappointed" to have lost the contract for the provision of logistics services to support UK customs arrangements at inland border facilities following a re-tendering process.

The contract will be transferred to another provider in June this year.

"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," investors were told.

The group said it "remains a strategic government commercial partner with major contracts with HMRC, Defra, the Department for Health and Social Care and the Cabinet Office."

As a result, and because of "a more challenging external environment in the coming financial year, including an accelerated reduction in consumer spending and customer volumes," results for the year ending March 2024 will now be "materially below" market forecasts of around £63 million, said the firm.

Trading in the year ending March 2023 has been in line with expectations, with revenue growth of three per cent and profits up five per cent.