Wincanton has issued a Q4 2021 trading update ahead of its full-year results for the year ending March 31, 2022.
Q4 performance
The company announced that it has delivered strong revenue growth throughout the period, with positive contributions from all four of its sectors. Group revenue is expected to grow by 12% compared to the same quarter in 2021, or 13% on an underlying basis excluding the impact of disposals. The Group also continues to perform in line with current market expectations for the full financial year.
e-fulfilment is expected to deliver year-on-year (y-o-y) growth of 56% for the full year including the Cygnia acquisition). The company has been integrated into the business and the combined business is generating a healthy pipeline of prospects. Online volumes continue to be influenced by the public response to the relaxing of pandemic restrictions as high street sales return, however, according to Wincanton the medium-term outlook for online e-fulfilment remains strong.
Public and Industrial is expected to show y-o-y growth of 18% for the full year. In addition to being appointed to run a new Department for Environment, Food and Rural Affairs site within the Sevington Inland Border Facility, the Group has secured a further contract to process and store PPE on behalf of the Government. This involves sourcing 30,658 sq m of storage space via a shared warehousing platform, OneVAST warehouse.
The two retail sectors, Grocery and Consumer and General Merchandise, are expected to grow y-o-y revenue by a combined 17%, compared to the same period in 2021. According to Wincanton, a key success during the period has been the mobilisation of the recently secured Primark contract for the management of all its UK warehouse-to-store transport logistics. This has involved securing 160 pieces of transport equipment and the recruitment or transfer of 96 driver colleagues.
Looking ahead, the company believes to be on track to deliver in line with market expectations, including an adjusted profit before tax of £56.5m within a range of £55.5m to £57.0m.
Driver and labour shortages have stabilised following the peak activity of the previous quarter and the Group has been successful in increasing its employed driver colleagues by 260 to 5,360.
Wincanton has reviewed its own supply chains and procurement channels in response to the conflict in Ukraine and the economic sanctions placed on Russia. The Group remains confident its supply channels are robust, but it will continue monitoring key suppliers. Wincanton also believes to be largely protected from the recent increases in fuel prices through the structure of its contracts, however, the Group continues to work with customers to manage these cost pressures.
The Board is confident in the future growth opportunities and is pleased with the continued progress made against the Wincanton stated strategy.
The Group will announce its full-year results for the year ending March 31, 2022 on May 20, 2022.
Source: Wincanton
