Wincanton, a leading supply chain solutions provider in the UK, recently issued a profit warning following the loss of a major contract with HM Revenue and Customs (HMRC). The company stated that the loss of the HMRC contract would significantly impact its profits for the current financial year, as it accounted for a substantial proportion of its revenue.
According to Wincanton, the HMRC contract loss was due to a change in HMRC’s requirements for the provision of its services, which resulted in the company being unable to meet the new criteria. This development came as a surprise to Wincanton, as it had been providing services to HMRC for over two decades, and had a longstanding relationship with the government agency.
The loss of the HMRC contract has also raised concerns about the future of Wincanton’s other contracts with the UK government, as well as its ability to win new business. The company has stated that it is actively seeking new opportunities to diversify its revenue streams and mitigate the impact of the contract loss.
A spokesperson for the group said: “Alongside the loss of this contract, and as previously announced, Wincanton continues to expect a more challenging external environment in the coming financial year, including an accelerated reduction in consumer spending and customer volumes.
“The combination of these factors will impact financial performance in FY24. The group now forecasts a reduced profit before tax for FY24 materially lower than current market consensus.”
Despite the challenges faced by Wincanton, the company has a strong track record of delivering innovative and effective supply chain solutions to a wide range of industries. With over 200 locations across the UK and Europe, Wincanton has a robust and extensive network that enables it to provide efficient and reliable services to its clients.