Wincanton first-half profits jump despite challenging backdrop

In the six months to 30 September, underlying pre-tax profit increased 2.6% to £28m on revenues of £753.6m, up 9.2% on the same period a year earlier. Wincanton said its performance was impacted by volume reductions in the two-person home delivery, retail transport and construction transport markets.

However, "a diverse portfolio of customers and new business wins, together with operational efficiencies, have provided protection against these commercial headwinds," it said.

The interim dividend was lifted 10% to 4.4p a share.

Wincanton hailed good new business momentum, with contract renewals and extensions including Ikea Dartford, Husqvarna and La Doria. It also pointed to a healthy pipeline of new business opportunities, particularly in public and infrastructure markets.

Revenue in the eFulfilment sector rose 19.1%, driven mainly by the acquisition of Cygnia. Meanwhile, new business from customers including Primark and DEFRA led to growth of 14.6% and 5.2% in the general merchandise and public & industrial sectors, respectively.

The company’s grocery & consumer segment delivered growth of 3.2%.

Chief executive James Wroath said: "Wincanton has delivered another good performance during the first half of the year in a challenging macroeconomic environment.

"We continued to win new business and made further progress against our growth strategy. Our exceptional customer service and track record for delivery are the foundations of our business. We are reinforcing this with sustained investment into automation and robotic solutions to meet the growing demand for these technologies, and they are delivering tangible results for our customers."