Chippenham, Wiltshire, UK: Wincanton reported strong growth in its retail grocery business when announcing its financial results, helped by new contracts, including a transport and vehicle maintenance services deal with Morrisons.
For the year to the end of March 2020, Wincanton’s turnover rose by 5.2% to £1.2bn and pre-tax profit grew 7.3% to £52.8m. Turnover in the retail grocery business grew by 26%.
All major contract renewals were successful in the year, including Sainsbury’s, Waitrose & Partners and Müller Milk. However, in the year to date, turnover dropped 10% year-on-year with a “negative impact on year to date profitability mostly in closed book contracts”.
The situation is now improving though, Wincanton points out, as May’s turnover was up 7% from April. Wincanton’s chief executive James Wroath, said: “Wincanton delivered another year of strong performance in FY19/20, since when the COVID-19 crisis has created significant challenges for the Group and our customers.
“The measures we have implemented have ensured great service has continued during the crisis period and opportunities for future growth have continued to emerge. Furthermore, profitability continues to recover as our sectors return towards normal levels of activity.”
“The overall direction of our strategy following my initial review has not been altered by Covid-19. Wincanton has a strong business model with an experienced management team, diversified service offerings and an excellent reputation.
“I expect to use this foundation as a springboard for growth to drive even greater success in the future. Our focus on great people delivering sustainable supply chain value will underpin the group’s development.”
