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Revenues have declined at logistics provider Wincanton as its grocery, consumer and general merchandise divisions recorded lower volumes amid the ongoing economic headwinds.
The group said in a first-quarter update that it continued to trade in line with market expectations but revenues were down 4.5% year on year in the three months to 30 June.
When closed-book transport contracts were included, the figure was 10.4% lower, with a 5.6% drop in grocery and consumer, and a 16.9% slump in general merchandise.
However, Wincanton pointed to early benefits from a strategic shift in the transport arm implemented to create a more profitable and digitally enabled service offering.
Following the reorganisation - revealed when the group published full-year results - Wincanton has won new ‘Transport Control Tower’ business with Sainsbury’s and construction group Breedon.
Revenues for the eFulfilment division increased 15% in the first quarter and the group also won several “significant” new contract due to start in Q2, including the expansion of the Ikea network partnership into Ireland and final mile delivery in Greater London.
“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,” the trading statement said.
“The group’s strategic shift in transport towards open book contractual agreements will deliver both financial and operational benefits.
“The group maintains a resilient financial position with a strong balance sheet and consistent cash generation.”
Shares in the group sank 1.4% to 248p as investors reacted to the update.
Morning update
It was a positive start for the FTSE 100 this morning as the blue-chip index opened 0.4% higher to 7,311.57pts.
Early risers included PayPoint, up 2.9% to 459.5p, Greencore, up 2.3% to 85.9p, and Haleon, up 0.8% to 310.9p.
Hotel Chocolat is down 1.2% to 115.1p, while Deliveroo is down 0.7% to 113.2p.
Yesterday in the City
The FTSE 100 edged up 0.1% to 7,282.52pts yesterday.
Risers included THG, up 6.3% to 92.7p, Associated British Foods, up 1.5% to 2,039.6p, and Bakkavor, up 0.4% to 94p.
Hotel Chocolat, Deliveroo and Coca-Cola Europacific Partners were among the losers, down 2.1% to 117p, 1% to 114.2p and 0.9% to €58.20 respectively.
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