Wincanton PLC revealed on Wednesday that it has seen a continued improvement in revenues and profitability since the initial impact of COVID-19 early in 2020.
Following a recovery and stabilisation period, the supply chain partner for UK businesses said it returned to growth in Q3.
The group’s revenue rose by over 10% in Q3 compared to the previous year, with growth in all of its four core business categories reflecting positive momentum in delivering its strategy and operational value.
Wincanton saw the largest increase in its digital and efulfilment departments with revenue rising 40% as demand increased due to customers switching to shopping from home. Revenue in the company’s public and industrial sectors was boosted by a rise in construction volumes and increased utilisation of its shared transport network.
“I would like to thank my colleagues for their incredible efforts in delivering a hugely successful Q3 and Christmas period, despite the ongoing challenges of COVID-19,” commented James Wroath, Wincanton CEO.
The strong performance of our underlying business and the new contracts we are implementing in our strategic growth markets are clear evidence that we are delivering on our strategy even in the difficult current climate,” added Wroath.
There was also a boost in performance due to work commencing on several contract wins, including a mandate to provide logistics services at Inland Border Clearance Centres and a contract for the storage, order fulfilment and customer delivery of testing kits to priority locations across the UK.
Looking ahead, the company believes the current lockdown will not have a significant impact on its performance and expects profitability for the current year to be ahead of expectations.
Wincanton shares rose to highs of 311p following the news. They are currently trading at 305p, up 12.13%.
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.