Wincanton announced Q4 results and a new contract with Snug, after leasing an automated e-fulfilment facility in Rockingham, Northamptonshire. Group revenue increased by 15% YoY, while Digital and e-fulfilment rose by 40%, and the Group expects full year results to be above market expectations.
In addition to the high volumes in its existing e-commerce activities, the sector has been said to be bolstered by the start-up of new business for Dobbies and Dwell and the commencement of operations at its west London Customer Fulfilment Centre (CFC) for Waitrose. According to the company, in the three weeks in which the CFC has been running the team has picked and dispatched close to 20,000 orders.
Public and Industrial is expected to show YoY growth of 10% in the quarter. There has been a ramp-up of Public Sector activity, most notably on contracts covering Inland Border Clearance services and the storage and distribution of Covid-19 testing kits, and the Group has experienced improved volumes for its building materials customers. This has been partially offset by lower levels of activity in the energy business due to the reduction in demand prompted by the lockdowns across the UK.
Performance in Grocery and Consumer remained strong and is expected to grow by around 3% against a challenging YoY comparison, with Q4 2019/2020 seeing the emergence of panic buying from consumers in the early weeks of the pandemic. The sector has secured a two-year contract with Heineken to handle products to retail outlets throughout England and Wales. General Merchandise, up by 28%, has benefitted from good levels of demand during the recent lockdown, particularly for DIY products. A new three-year contract was secured with garden landscaping products manufacturer, Kelkay, to provide a full transport service.
Following the continued strong performance through the second half of the year, Wincanton has repaid £5.8m of Government support received under the Coronavirus Job Retention Scheme (CJRS), initially taken to protect jobs in its retained, closed book business.
Expanding e-commerce activity
Wincanton will be leasing an automated e-fulfilment facility in Rockingham, Northamptonshire, as part of its ongoing strategy to extend its e-commerce proposition, creating additional capacity to drive expansion. The new facility has already enabled the Group to secure business with B&Q and Snug, according to Wincanton. The 528,000 sq ft facility has been designed to deliver automated e-fulfilment services to multiple clients, aiming to reduce unit costs and shortening lead-times in response to the changing demands of consumers. The site is the Group’s second and largest multi-user e-fulfilment centre, following the acquisition of a facility in Nuneaton in 2020, and it is the latest addition to Wincanton’s strategic focus on the high-growth e-commerce market.
Its new automated site in Rockingham will enable B&Q to expand the number of products available to customers and will be aiming for the shortest possible lead times.
Wincanton will also be creating an end-to-end e-fulfilment and Home Delivery service for new customer Snug. The three-and-a-half-year contract will see Wincanton fulfil all customer orders, with large products being delivered via the Group’s two-person home delivery network. Wincanton will also be deploying its latest cloud fulfilment technology and carrier management solutions, to enable customer onboarding.
The site, which will be leased for an initial period of three-and-a-half years, will house the Group’s first Customer Innovation Centre and Wincanton will further invest in the facility to develop next generation robotics and digital solutions to maintain its position in the market.
James Wroath, Chief Executive Officer of Wincanton, commented, “Wincanton has delivered another strong performance, maintaining our positive momentum throughout the final quarter of the year. Our people have met the challenges associated with operating in another lockdown and it is very satisfying to see all four parts of the business in growth and contributing positively to the Group. We are also delighted to have expanded our e-fulfilment capabilities and capacity further with our new site in Rockingham. This serves as a marker of our ambitions to capitalise on the growth opportunities presented by the increasing prominence of online retail.”
Source: Wincanton
