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The Markets
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The Markets
by Proactive
Proactive UK has moved.
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Transport

Wincanton revenues slip 15% in April with mixed results across its segments

The logistics firm expects a gradual recovery in the construction and two-person home delivery segments, while grocery is sitting at normal levels

Wincanton Plc (LON:WIN) said demand for grocery and consumer products has calmed down after an initial spike in March, when the public stockpiled ahead of a prolonged lockdown.

Revenue in April slipped 15% with mixed results across the logistics firm's segments.

READ: Wincanton sees high level of haulage activity amid coronavirus pandemic

Non-grocery retail was lower than previous years as consumers focus on essential items, while the construction segment took a big hit from closures across the country, though it is expected to resume at a gradual pace.

To follow safety guidelines, Wincanton was forced to shut its two-person home delivery network causing a significant impact on profits, however this is also restarting in a phased manner.

Container volumes and pullman fleet services continue to be below expectations due to reduced traffic from Asia, as well as general lower demand for vehicle maintenance and repairs as a result of less road activity.

The dividend for the year to 31 March was suspended although revenue was up 5%, in line with market expectations.

The transport firm has furloughed 15% of its staff and cut board’s salaries by 20% among other cost-saving measures.

Total available borrowing facilities as of Thursday were £181mln.

Shares dropped 10% to 206p on Thursday morning.

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