Wincanton FY profit to exceed market expectations, shares surge

Wincanton shares surged on Thursday after the logistics firms said full-year profit was set to exceed market expectations following a strong performance in the third quarter.

The company said it has continued to see strong trading across all four business sectors, with high demand for its services.

Group revenue was up 15% on the same quarter last year, or 14% excluding the impact of acquisitions and disposals.

"Given the strong Q3 performance, and with greater certainty regarding the mitigation of cost pressures, the group now expects full year profit to exceed current market expectations," it said.

Revenue in the company’s digital and eFulfilment sector rose 51% in the third quarter, driven by the acquisition of Cygnia, its specialist high-volume eFulfilment business. Excluding Cygnia, revenue was up 22%.

Revenue in the grocery and consumer sector was 19% higher in the third quarter and Wincanton said it also benefited from a strong performance in the general merchandise sector, where quarterly revenues were ahead 9%.

Revenue in the company’s public and industrial sector was up 5%, driven mainly by growth of the public sector business.

Chief executive James Wroath said: "Wincanton has continued to deliver value for its customers and this has generated another strong financial performance over the past quarter. Looking ahead, the business is on the right track.

"We are maintaining our relentless focus on the delivery of our strategy, with innovation and new technologies driving growth throughout the business."

At 0900 GMT, the shares were up 11% at 386p.