Wincanton PLC (AIM:WIN) said the current shortage of HGV driver in the UK is impacting some of its operations and that it has taken steps to attract and retain drivers.
The logistics group said in a trading update that it remains on track to meet market expectations for interim profits, on the back of strong retail volumes and the rate changes in closed book contracts.
Commenting on the lorry driver crisis, Wincanton said the biggest impact has been on closed book transport contracts, particularly in construction and fast-moving consumer goods (FMCG). It has made good progress in agreeing rate changes to optimise service levels and noted that most of its contractual arrangements mitigate against cost pressures.
The company added that the recent fuel shortages have not impacted its profitability.
It said revenue growth in the first half continued to be strong, with positive contributions from all four of the group's sectors and particularly from retail customers.
The integration of Cygnia Logistics, the eCommerce and eFulfilment provider bought for £23.9mln in September, is progressing as planned.
During the six months to end-September, Wincanton won a five-year extension to its contract to provide transport, warehousing, materials management, packing and inspection services to long-term customer BAE Systems.
In addition, the group agreed a deal with Asda to take on collection services at the supermarket chain’s facility in Lutterworth.
Wincanton said its pipeline of new contracts and extensions of existing agreements remains encouraging and that it remains confident in the future growth opportunities.
Shares were 7.55% higher at 356p in midmorning trade.