Wincanton first-quarter revenues fall

(Sharecast News) - Logistics company Wincanton reported a drop in first-quarter revenues on Wednesday amid lower delivery volumes. In the three months to 30 June, revenue fell 4.5% year-on-year when closed book transport contracts are excluded. When including closed book transport, revenue was down 10.4%.

Wincanton said it continues to trade in line with market expectations and has made "sustained strategic and operational progress" despite the ongoing economic headwinds and resultant lower delivery volumes.

Revenue in the grocery and consumer segment was 5.6% lower year-on-year, while the general merchandise arm saw a 16.9% decline, reflecting both volume reductions and customer churn.

Revenue from eFulfilment rose 15% in the first quarter. Wincanton said it secured several significant new contract wins in the segment, all of which will begin in the second quarter. These include the expansion of the IKEA network partnership into Ireland and final mile delivery in Greater London, the UK launch of US home retailer Restoration Hardware and fulfilment services for Neom Organics and Brewers.

Revenue from the public and industrial sector rose 2.1%, with growth in the company's defence customers and EDF Hinkley Point offsetting reductions from contracts with HMRC and DEFRA.

"Wincanton is well-placed to continue to navigate the challenging external environment with its successful strategy and continued investment in automation technology, underpinned by its diversified customer base," it said. "The group's strategic shift in transport towards open book contractual agreements will deliver both financial and operational benefits."