Wincanton PLC (AIM:WIN) reported growth in full-year revenue and profits, with numbers also rising well ahead of levels seen in the year before the pandemic struck.
Revenue was £1.42bn in the year to 31 March 2022, a rise of 16.3% on the previous year and 18.3% higher than in pre-pandemic 2020, the logistics company said in its earnings release.
Underlying pretax profits increased by 23.1% to £58.1mln, above market forecasts for £56.5mln and 10% ahead of two years ago, while reported pretax profits were 18.6% higher at £54.8mln.
The company said the strong performance was achieved despite inflationary pressures, as retail volumes remained strong and it won new contracts, particularly in its key strategic growth markets of eCommerce, public sector and infrastructure.
"Wincanton has delivered another strong set of results, with growth across all four sectors leading to a substantial increase in revenue and profit ahead of pre-pandemic levels,” commented CEO James Wroath.
“The core foundation sectors of Grocery & Consumer and General Merchandise continue to be a source of strength for the group, and we have made significant progress in our focused growth markets of Public & Industrial and eFulfilment.”
In a sector struggling with lorry driver shortages, Wincanton said it is maintaining positive progress on recruitment through its fast-track driver training scheme and other measures to improve driver retention.
Looking ahead, the company said there is good momentum in the new business pipeline.
“While mindful about the macro-economic headwinds facing our sector, we are confident in the growth opportunities we have ahead of us and in our continued ability to deliver our strategy successfully," concluded Wroath.
The company closed the year with net cash of £3.7mln, down from £11.9mln a year earlier, with free cash flow generated from operating activities offset by spending on acquisitions.
Wincanton is paying a final dividend of 8p, up from 7.5p the year before, taking the full-year payout to 12p (2021: 10.35p).