Wincanton

May 22, 2023

Wincanton makes profitable progress against economic headwinds Logistics group Wincanton PLC (LSE:WIN) delivered profitable growth and strategic progress in a “challenging external environment”. Results for the 12 months ended 31 March 2023 revealed underlying earnings (EBITDA) grew by 12.6% to £121.9mln on revenue of £1.46bn, up 2.9%. Investors were rewarded with a 10% hike to the dividend payment and will receive 13.2p a share. Updating on current trading, Wincanton said it expects 2024 results to be in line with forecasts but also will reflect the current economic headwinds. “The board is confident in the group's long-term growth strategy, underpinned by the highly cash-generative business model and ability to deploy capital in its most profitable sectors,” investors were told. “Management remains focused on delivering excellent customer service, driving efficiencies for both Wincanton and its customers and delivering growth from its pipeline of new business opportunities.” Operationally, the company continued to solidify its customer base with renewed contracts from long-standing clients such as Sainsbury's, Waitrose, Wickes, Co-op and Halfords. It also landed business with DHSC and Defra, as well BAE Systems. The past year also witnessed Wincanton's strategic focus on integrating robotics and automation technologies into its operations. This culminated in the successful implementation of autonomous mobile robots at its Cygnia facility, reflecting its commitment to innovation and improved efficiency. A reorganisation of the group transport operations, aimed at creating a more profitable, digitally enabled service, led to restructuring, resulting in associated impairment charges of £19.5mln. The move, Wincanton said, is set to pave the way for greater operational efficiency and profitability in the long term. Chief executive James Wroath added: “We continue to invest in technology as the route to deliver competitive advantage in the industry. “Significant opportunities remain for warehouse automation across our group, both in the foundation sectors and strategic growth markets. “Furthermore, our transport operations have had a shift in focus with technology at the heart of our new market proposition.”