Wincanton PLC (LSE:WIN) said economic headwinds were resulting in lower delivery volumes, but it made strategic and operational progress during the first quarter of its fiscal year.
The logistics group said it continues to trade in line with market expectations, where the City analyst consensus is for a full-year profit before tax of £50.4mln.
For the three months to end-June, group revenue was down 4.5% on the same period last year, when excluding closed-book transport contracts to reflect the strategic reorganisation outlined in May’s final results.
The decline was 10.4% lower when including closed book transport, including a 5.6% decline in Grocery & Consumer, while General Merchandise slid 16.9%.
However, with the strategic shift in transport towards open-book contracts aimed at increasing digital capabilities and profits, the London-listed group said it was already seeing early benefits.
New business for its Transport Control Tower offering has been won with Sainsbury's and Breedon, while a dedicated transport contract with New Look has started and a long-standing transport partnership with Halfords has been extended for a further five years.
Revenue in the eFulfilment arm increased 15% in the first quarter, with several new contract wins that are due to begin in the second, including an expansion with IKEA into Ireland and final mile delivery in Greater London, the UK launch with US furniture retailer Restoration Hardware and fulfilment services for both Neom Organics and Brewers Decorator Centres.
Revenue increased 2.1% in the Public & Industrial sector, with growth in defence sector customers and EDF Hinkley Point offsetting reductions from the contracts with HMRC and DEFRA.
Late last month the group secured an expanded three-year contract with defence contractor Rheinmetall BAE Systems Land (RBSL), plus a 10-year warehousing and logistics partnership for British Salt.
An update on the ongoing triennial valuation of the pension fund is expected to be provided at the half-year stage, it added.