Wincanton profits fall due to pandemic

Strong digital and e-fulfilment growth didn’t stop profits dropping at third party logistics company Wincanton in the first half of the year.

Though digital and e-fulfilment grew by 15.7%, profit before tax fell to £19.1 million compared to 2019’s £26.2 million. Disruption due to the pandemic was behind the profit drop, according to the company.

James Wroath, Wincanton Chief Executive Officer commented: “Wincanton has demonstrated agility, innovation and commitment to meet the critical supply chain needs of customers and consumers throughout the country. I am proud of how our team has responded to the challenge that COVID-19 has brought to our markets. The current environment strengthens our conviction that we are following the right strategy. The steps we have taken to refocus the Group on growth markets, including disposing of our Pullman fleet services and our containers business, will underpin our ongoing performance.

“I am greatly encouraged by the new contracts we have secured so far this year to become a key partner for some of Britain’s biggest brands and public bodies, and we continue to see a healthy pipeline of new opportunities coming to market. Performance has been resilient in the first half, we expect the good momentum with which we end the period to continue and consequently expect results for current year to be materially ahead of market expectations.”