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Robert.Jervis_43227 Nov 19

Wincanton has published its Half Year Results for the six months ended 30 September 2021

The Group reported that it had delivered a strong set of results, with record levels of growth and positive contributions from all parts of the business, as well as meaningful progress in the delivery of its strategy
James Wroath, Chief Executive Officer of Wincanton commented:
“We have delivered a strong set of results in the first half of the year with record levels of growth and positive contributions from all parts of the business. Importantly, we have also made meaningful progress against our strategic priorities. We completed the acquisition of Cygnia and commenced operations at our automated facility in Rockingham, and this significantly strengthens our eCommerce proposition. I am particularly pleased that we have delivered this performance notwithstanding the well-documented challenges across the supply chain. We are taking steps to address shortages of labour and we are well positioned to deal with the cost pressures we are seeing across our markets.
“So far this year, we have secured a healthy level of new customer contracts, renewed agreements with businesses we are proud to have supported for many years and have a strong pipeline of new opportunities ahead of us. We are continuing to strengthen our offer to customers through investments in digital and robotic innovation and a culture of continuous improvement in our services. All of this positions us well to benefit from the changes we are seeing in our markets.”  
                                                      H1 21/22             H1 20/21       Change
Revenue (£m)                               690.3                  578.7             19.3%
Underlying EBITDA (£m)              50.8                    43.2               17.6%
Underlying profit before tax (£m)  27.3                    19.1               42.9%
Underlying basic EPS (p)             18.2                    12.9                41.1%
Dividend per share – interim (p)   4.00                     2.85              40.4%
Free cash flow (£m)                     17.9                     76.4   
Net (debt) / cash (£m)                (16.4)                    63.3   
Statutory results                         
Profit before tax (£m)                  25.1                     19.1                31.4%
Basic EPS (p)                             16.9                     12.9                 31.0%
Financial highlights
•        Revenue growth of 28.6% in H1, excluding businesses disposed of during FY 20/21
•        Underlying profit before tax of £27.3m up 42.9% from prior year, back ahead of pre-pandemic profit levels (H1 19/20: £26.2m)
•        Driver cost headwinds mitigated by business model; less than 20% of Group revenue is closed book transport of which price increases or exits have been agreed on c.90%
•        Free cash flow generation of £17.9m in H1, prior year cash position benefitted from significant temporary Covid-19 deferred payments, acquisition funded through cash reserves
•        Interim dividend of 4.00p (H1 20/21: 2.85p), up 40.4% in line with underlying earnings
Positive progress against strategy
•        Acquisition of Cygnia Logistics (Cygnia), a specialist eCommerce and multichannel eFulfilment provider, strengthens capabilities and accelerates growth prospects
•        Continued organic investment in eCommerce, operations commenced at the Group’s automated facility in Rockingham, further investment in robotics in other locations
•        Both short and medium-term actions taken to secure a sustainable and diverse workforce with, for example, our Wincanton Future Drivers programme, dedicated recruitment functions and representations to Government
•        On track to achieve net-zero emission target for our premium home delivery service by end of the year; new targets introduced of net-zero for Wincanton owned transport by 2026
•        Year to date contract wins include new customers such as Primark, MGA Entertainment, Lakeland, Snug Sofa and Saint-Gobain
•        Notable contract renewals and extensions with Asda, IKEA, Roper Rhodes, HMRC, BAE Systems and the Department for Transport (DfT) demonstrate success across all parts of the business
•        Pipeline of further opportunities continues to grow with a number in negotiation for implementation in FY23