Logistics group Wincanton is confident it can steer clear of the any consumer slowdown triggered by the cost-of-living crisis after a year in which its profits soared by 23%.
The Chippenham-headquartered group has benefited in recent years from the rise in online retailing, with its efulfilment business driving its growth.
But it said all parts of its business, including its work with the public sector, had contributed to its growth in the year to 31 March, with underlying pre-profits coming in at £58.1m on revenues up 16.3% to £1.42bn.
Its eFulfilment business was boosted by the successful integration of eCommerce fulfilment specialist Cygnia Logistics, which it bought for £23.9m last September, as well as investment in automation and innovation at its own dedicated eCommerce facility in Nuneaton and its 528,000 sq ft, state-of-the-art automated eFulfilment facility in Rockingham, Northamptonshire.
Its public & industrial division was boosted by contract wins and renewals with HMRC, DHSC and Defra, and growth in defence through new work with BAE Systems and Alstom, while grocery & consumer enjoyed record volumes, and its general merchandise operation was strengthened by automation and robotics used for the Kingfisher Group including Screwfix.
Wincanton, Britain’s largest third-party logistics group employs around 19,600 workers, including 5,500 drivers, also said it had made progress on recruitment against a backdrop of severe labour shortages – especially drivers.
During the year it set up a fast-track driver training scheme, increased investment in apprenticeships and created a labour campus to improve retention and operational effectiveness.
Looking ahead, the group, which has around 3,500 vehicles on the road and operates from more than 200 sites across the country, said it was well positioned to maintain its positive performance across its chosen markets, driven by ongoing investment in the business and continued progress against our strategy
It added: “While the group remains mindful about the macro-economic headwinds and the potential impact on consumer sentiment, there is good momentum in the new business pipeline and we are confident in the future growth opportunities across all four of our sectors and in our continued ability to deliver our strategy successfully.”.
Chief executive officer James Wroath, pictured, added: “Wincanton has delivered another strong set of results, with growth across all four sectors leading to a substantial increase in revenue and profit ahead of pre-pandemic levels.
“The core foundation sectors of grocery & consumer and general merchandise continue to be a source of strength for the Group, and we have made significant progress in our focused growth markets of Public & Industrial and eFulfilment.
“We have invested behind our strategy, particularly in eCommerce with the successful integration of Cygnia Logistics and the eFulfilment capacity created at Rockingham.
“We continue to develop automation solutions and robotic technologies to create supply chains that are efficient, agile and resilient.
“This approach, coupled with Wincanton’s longstanding reputation for high quality service delivery enabled us to secure a number of high-profile new contracts and extensions.”
