RNS Number : 0248U
31 March 2021
THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION AS DEFINED IN
ARTICLE 7 OF THE MARKET ABUSE REGULATION NO. 596/2014
31 March 2021
("Wincanton" or the "Group")
Wincanton delivers strong trading performance & expands
Wincanton, a leading supply chain partner for UK business, today
provides an update on Q4 trading performance in advance of the
release of its full year results on 20 May.
-- Group underlying revenue in Q4 +15% year-on-year, Digital and eFulfilment +40%
-- Repayment of GBP5.8m of furlough support
-- Full year results anticipated to be above market expectations
-- Acquisition of lease on large-scale, fully automated
eFulfilment facility in Rockingham, Northamptonshire
-- New business secured with B&Q, Snug, Heineken and Kelkay
Q4 performance update
The Group has continued to perform strongly in the fourth
quarter and underlying revenue, excluding disposed businesses, is
expected to be around 15% ahead of prior year, with growth in all
Digital and eFulfilment is again set to deliver year-on-year
growth of c.40% in the period. In addition to the high volumes in
its existing eCommerce activities, the sector has been 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. The CFC has been running for just over
three weeks and, in that time, the team has picked and dispatched
close to 20,000 orders.
Public and Industrial is expected to show year-on-year growth of
c.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 year-on-year
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
(+c.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.
The Group has maintained a strong balance sheet whilst also
repaying both its deferred pension contributions and VAT in full.
Following the continued strong performance through the second half
of the year, Wincanton has repaid GBP5.8m of Government support
received under the Coronavirus Job Retention Scheme (CJRS),
initially taken to protect jobs in its retained, closed book
business. The Group expects to deliver full year profits above
market expectations, after taking into account repayment of
Wincanton expands eCommerce capacity
Wincanton will be leasing a state-of-the-art, automated
eFulfilment facility in Rockingham, Northamptonshire, as part of
its ongoing strategy to extend its eCommerce proposition, creating
additional capacity to drive expansion. The new facility has
already enabled the Group to secure business with B&Q and Snug,
and there is a healthy pipeline of further opportunities.
The 528,000 sq ft facility has been designed to deliver highly
automated eFulfilment services to multiple clients, reducing unit
costs and shortening lead-times in response to the rapidly changing
demands of the consumer. The site is the Group's second and largest
multi-user eFulfilment centre, following the acquisition of a
facility in Nuneaton in 2020, and it is the latest evidence of
Wincanton's strategic focus on the high-growth eCommerce
An agreement has been reached with B&Q to support their
e-commerce growth, adding to the extensive range of supply chain
solutions already provided by Wincanton for Kingfisher. Our new
automated site in Rockingham will enable B&Q to rapidly expand
the number of products available to customers on the shortest
possible lead times.
Wincanton will be creating an end-to-end eFulfilment and Home
Delivery service for new customer Snug, the original Sofa in a Box
company and one of the fastest-growing eCommerce brands in the UK.
The three-and-a-half-year contract will see Wincanton fulfil all
customer orders, with large products being delivered via the
Group's industry-leading, two-person home delivery network.
Wincanton will also be deploying its latest cloud fulfilment
technology and carrier management solutions, to enable rapid
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 leading position in this exciting 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 eFulfilment
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
For further information please contact:
Wincanton Plc Tel: +44 12 4971 0000
Tim Lawlor, Chief Financial Officer
Headland Tel: +44 20 3805 4822
Susanna Voyle/ Henry Wallers/ Jane Glover
Wincanton is a leading British supply chain solutions company.
The Group provides business critical services including storage,
handling and distribution; high volume eFulfilment; retailer 'dark
stores'; two-person home delivery; fleet and transport management;
and network optimisation for many of the UK's best-known
It is active across a range of markets including food and
consumer goods; retail and manufacturing; eCommerce; the public
sector; major infrastructure; building materials; fuel; and
defence. With almost 100 years' heritage, Wincanton's 19,600-strong
team operates from more than 200 sites across the country,
utilising 3,500 vehicles.
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(END) Dow Jones Newswires
March 31, 2021 02:00 ET (06:00 GMT)
Grafico Azioni Wincanton (LSE:WIN)
Da Ago 2021 a Set 2021
Grafico Azioni Wincanton (LSE:WIN)
Da Set 2020 a Set 2021