Revenues fall at logistics firm Wincanton

By Peter Davison

13 July 2023

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Chippenham-based logistics company Wincanton has reported a drop in first-quarter revenues amid lower delivery volumes.

In the three months to 30 June, revenue fell 4.5 per cent year-on-year when closed book transport contracts are excluded.

When including closed book transport, revenue was down 10.4 per cent.

Revenue in the grocery and consumer segment was 5.6 per cent lower year-on-year, while the general merchandise division saw a 16.9 per cent decline.

Revenue from eFulfilment rose 15 per cent in the first quarter, with the company saying it had secured several significant new contract wins in the segment, all of which will begin in the second quarter.

These include the expansion of the IKEA network partnership into Ireland and final mile delivery in Greater London, the UK launch of US home retailer Restoration Hardware, and fulfilment services for Neom Organics and Brewers.

Revenue from the public and industrial sector rose 2.1 per cent, with growth in the company’s defence customers and EDF Hinkley Point offsetting reductions from contracts with HMRC and DEFRA.

CEO James Wroath said: "Wincanton is well-placed to continue to navigate the challenging external environment with its successful strategy and continued investment in automation technology, underpinned by its diversified customer base.

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"The group's strategic shift in transport towards open book contractual agreements will deliver both financial and operational benefits.

"The group maintains a resilient financial position with a strong balance sheet and consistent cash generation. Management continues to actively engage with the Wincanton Pension Fund Trustees to agree an optimal contribution schedule in response to the ongoing triennial valuation and expects to provide a further update at half year."

By Peter Davison

Peter Davison is deputy editor of The Business Magazine. He has spent his life in journalism – doing work experience in newsrooms in and around Bristol while still at school, and landing his first job on a local newspaper aged 19. By 28 he was the youngest newspaper editor in the country.

An early advocate of online news, he spent the first years of the 2000s telling his bosses that the internet posed both the biggest opportunity and greatest threat to the newspaper industry and the art of journalism. He was right on both counts.

Since 2006 he has enjoyed a career as a freelance journalist. He lives in rural Wiltshire with one wife, two children, and three cats.