Sharp ■ Informed ■ Challenging
20.11.23
Multiple factors lead to drop in profit but outlook remains positive Annual Conference 2023 2 November 2023, ICC Birmingham
CONFERENCE REVIEW
Wincanton sees profit fall in first half of year By Carol Millett
FORS Conference Review
Free inside See pages 22-40
NEWS INSIDE Cashing out
DX agrees to takeover offer p3
Damages demand
Whistl challenges Royal Mail p6
Driving for growth
FreshLinc delivers on profit p8
OPERATORS INSIDE
Photo: DPD / Mark Williamson
Bretts Transport �������������������������������������������� p6 DS Smith Logistics ���������������������������������������� p4 EV Cargo ������������������������������������������������������� p4 Hinks Haulage ����������������������������������������������� p6 Malcolm Group ���������������������������������������������� p3 Walkers Transport ���������������������������������������� p8
Wincanton saw profit plummet by almost a fifth and revenue fall by 8% in the first six months of this financial year, which the haulier attributed to the group’s strategy to shift out of closed book transport contracts, inflationary pressure, rising interest rates and lower consumer confidence. According to its unaudited halfyear results to 30 September 2023, the group delivered revenue of £694.7m, compared to £753.6m in the same period in 2022. Excluding closed book transport contracts, revenue fell by 3.7% in the half year, whilst pre-tax profit lurched downwards by 19.3% to £22.6m (H1 2022: £28m). In better news, the group announced a milestone agreement reached with the Defined Benefit Pension Scheme Trustees for the March 2023 triennial valuation. The last contribution to the scheme was made in July 2023, which the company said unlocks “significant” free cash flow. The company has also launched a £10m share buyback programme, under a new capital allocation framework. Highlights listed by the group for the period include Wincanton’s
continued automation drive, which has seen the launch of a robotic cross dock solution for a leading UK retailer and a reorganisation of transport. Wincanton also pointed to “significant” growth in open book managed transport services, including the launch of its Sainsbury’s contract alongside previous wins with retailers New Look and Primark. James Wroath, Wincanton chief executive, said: “We have delivered a resilient performance during the first half of the year. “We continue to invest in supply chain automation, transport optimisation and operational excellence. As reflected in our new capital allocation framework and the confidence of the board, we are maintaining our dividend year
on year and returning value to our shareholders through a share buyback programme.” Looking ahead, the company said it expects retail volume pressure to persist in the near-term. It added: “Despite this, the group’s diversified sectors, commercial discipline and customer relationships ensure that Wincanton is well positioned to deliver on its strategic ambitions. “Strong cash generation and the result of the 2023 pension triennial valuation will help accelerate the group’s investment in sustainable and margin accretive growth and enhance shareholder returns. The Board remains confident in the Group’s strategy and expects to deliver revenue and profit in line with market expectations for FY24.”
GREEN DELIVERIES: DPD said its new sortation centre in Bromley-by-Bow, east London will enable it to deliver 80,000 ‘green’ parcels into London every day. The £40m eco-regional depot was officially opened by transport secretary Mark Harper MP (pictured with Elaine Kerr, DPD UK chief executive), who praised the investment for helping to drive the UK’s green economic growth. DPD said the facility will create 650 new jobs when fully operational in the new year. It will also enable DPD’s delivery service within the North and South Circular area to be all electric. Boosting its green credentials further, the 430m-long conveyor system will sort all intra-London parcels for next-day delivery on-site, instead of being trunked to the Midlands and back for sorting. The site includes solar panels on the parking canopy to charge 500 electric vehicles, while a 40,000 litre hydrotreated vegetable oil (HVO) tank will enable DPD’s HGVs and 7.5-tonne trucks to fill up with renewable biofuel. Solar panels will be added to the main roof in the new year, which the parcel firm said could generate up to one million kWh to help power the entire building.
News extra: Vaculug p10 Focus: apprenticeships p12 Viewpoint p14 Prometeon p16 FORS review p22 Top 100 p41 MT Awards p48