Wincanton to restart dividend payments on strong outlook
Logistics firm Wincanton announced that it would restart paying dividends today on top of bullish forecasts for its financial outlook.
Although profit shrunk from £26.2m to £19.1m in the first half of the year due to the coronavirus pandemic, the FTSE 250 firm said that it expected its full year results to be “materially ahead” of expectations.
Having suspended its dividend as the coronavirus crisis struck back in March, the firm will now pay out 2.85p per share in January.
Wincanton said that its “resilient” first half performance had been underpinned by 15.7 per cent growth in its digital and “efulfillment” division.
Over the period it has signed a number of partnerships with big name retailers such as Waitrose, Wickes, and the White Company.
Along with its existing partners Asda, Morrisons, and Screwfix, the new deals show that the firm is committed to developing into a fully-fledged logistics operator.
As a part of this strategy, Wincanton today announced the sale of its Pullman fleet services division to asset manager Aurelius.
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It did not disclose the size of the deal but said it would reduce Wincanton’s annual revenue by around £30m.
Chief executive James Wroath said: “The current environment strengthens our conviction that we are following the right strategy.
“The steps we have taken to refocus the Group on growth markets, including disposing of our Pullman fleet services and our containers business, will underpin our ongoing performance.
“I am greatly encouraged by the new contracts we have secured so far this year to become a key partner for some of Britain’s biggest brands and public bodies, and we continue to see a healthy pipeline of new opportunities coming to market.”
Shares in Winconsin fell half a per cent in the morning’s trading.