Wincanton on track despite falling sales in first half

Supply chain group Wincanton said it still expects to meet profit forecasts this year despite first-half revenues taking a dip.

Wincanton, which provides services such as storage, handling, e-fulfilment, fleet management and distribution, said that the top line will be lower than last year, "reflecting the strategic reorganisation of the group's transport operations".

In its first-quarter trading update in July, the company said revenues were down 4.5% year-on-year. It said the aim of the transport unit reorganisation is to create a more profitable and digitally enabled service offering, alongside a more efficient allocation of capital. Going forward, the focus would be on the development, delivery and management of technology-based solutions and open-book dedicated networks.

Wincanton reiterated that, like previous years, full-year profits will be weighted towards the second half, reflecting seasonal peaks and the onboarding of new customer wins.

Nevertheless, it still expects to hit the current consensus estimate for a pre-tax profit of around £50m for the year to 31 March 2024, which would be an improvement on the £38.2m reported the previous year.

The stock was up 0.2% at 259.1p by 0921 BST.