Wincanton reports growth in first half of 2014

Wincanton has announced its half year results for the six months of 2014 ended September 30. It reported that revenue increased by 1.6% year-on-year to £550.9m. The company also recorded underlying operating profit of £24.9m, an increase of 2.9% compared to the first half of 2013. Accordingly the company’s margin stood at 4.52%.

Eric Born, Wincanton’s Chief Executive commented, “These results represent another solid half of operational and financial performance. Wincanton continues to focus on contract renewals and contract wins with existing and new customers. We remain committed to further reducing cost and improving asset efficiency for the benefit of our clients and to improve our performance. The successful refinancing in the period provides a strong financial platform and we are confident that we remain on track to meet our expectations for the current financial year.”

The Contract Logistics business reported revenues of £464.1m, up 0.5% on the same period of 2013. The revenue increase of 0.5% was driven primarily by volume growth in the construction and fast moving consumer goods sectors. It was partially offset by some volume reductions in tankers & bulk. Within retail, growth in grocery revenues from convenience store activities and strong household and DIY volumes were offset due to the impact of site closures as retailers reshaped their networks.

The Contract Logistics division recorded underlying operating profit of £20.9m, an increase of 6.1% year-on-year. The improvement in profitability reflected gains in operational efficiency and minimized costs together with the impact of the change in the division’s revenue profile.

The Specialist businesses segment recorded revenue of £86.8m, an increase of 8.0% year-on-year with all business units reporting growth from contract wins. The division’s underlying operating profit margin decreased to 4.6% as underlying operating profit fell by 11.11% to £4.0m. The decrease in operating profit primarily reflected additional investment to deal with growth together with some margin pressure on renewals.


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