Wincanton sees revenue fall 15 per cent amid signs of ‘gradual’ recovery
Logistics firm Wincanton said that revenue in April was down 15 per cent on a year-on-year basis, though it said it was beginning to see encouraging signs of a “gradual increase” in activity levels.
In a trading update, the haulage company said that “considerable uncertainty” remained over the financial disruption it would suffer due to the coronavirus crisis.
In order to mitigate against fluctuating demand, Wincanton said it had extended its revolving credit facility by an additional £40m.
As a result, the firm now has £181m available for it to draw down from.
Wincanton also said that it had taken additional steps to cut cash expenditure, such as furloughing 15 per cent of its workforce – roughly 2,500 staff.
Its board and executive management team have also taken 20 per cent pay cuts, while all bonuses have been cancelled and the firm’s dividend scrapped.
Performance in Wincanton’s grocery and consumer goods divisions have now returned to normal levels, having spiked at the beginning of the crisis due to a spate of panic buying.
The firm has also had to shut its home delivery service due to social distancing requirements, while revenues from its construction division fell 70 per cent year on year.
Although construction work has now begun to restart under the UK’s staged lockdown exit, Wincanton said it expected the pick-up in business to be “gradual”.
Chief executive James Wroath said: “The outlook is uncertain as we wait to see how the country will emerge from lock-down and the impact varies considerably across our diverse sectors.
“I am confident we are taking the right measures for the business and stakeholders to put Wincanton in the very best possible position to get through the coming months and to thrive in the longer term.”