Logistics group Wincanton has repeated its warning that its total revenues are likely to be lower this year as it continues with a strategic reorganisation of its transport operations.
The Chippenham-headquartered group alerted shareholders to expected outcome recently when it updated them on its first quarter performance.
Now it has reiterated the warning in a trading statement for the half-year to the end of last month.
The group, which has 20,300 employees and 7,400 vehicles in more than 160 sites across the country, has performed strongly over recent years, benefitting from the huge increase in home shopping during the Covid lockdowns and the switch to e-fulfilment by major retailers.
However, a “more challenging environment” sparked by the cost of living crisis and the loss of a government contract hit the group earlier this year – forcing it to undergo a reorganisation.
In its first quarter update it had said that it had made sustained strategic and operational progress despite being buffeted by “economic headwinds and resultant lower delivery volumes”.
The strategic reorganisation of its transport operations aims to create a more profitable and digitally enabled service offering, it said, alongside a more efficient allocation of capital.
It said early benefits from this strategic shift were already being seen, with new business for supermarket giant Sainsbury's and construction materials company Breedon.
A new dedicated transport contract with clothes and homeware retail chain New Look had started and its long-standing transport partnership with auto-parts and cycle retailer Halfords had been extended for a further five years.
In its latest update the group said it continued to trade in line with market expectations and that, as in previous years, profit was expected to be weighted towards the second half of the financial year, which reflected its seasonal peaks and the onboarding of new customer wins.
However, it also said total revenues were expected to be lower year-on-year “reflecting the strategic reorganisation of the group’s transport operations”.
Wincanton will publish its interim results on 9 November.
