After a difficult year, Wincanton’s latest financial results for the year up to 31st March 2024 showed that the company reported a pre-tax loss of £44.9m. This compares with a pre-tax profit of £38.2m in the previous trading year.
The company attributes the results to a combination of a number of factors, not least the costs related to the ongoing acquisition by the US logistics company, GXO.
They also saw revenue from their grocery division drop by 2.5% as the impact of the cost of living meant less produce was being bought. Other hurdles involved their two-person delivery service, which was hit by “macro-economic headwinds” and the loss of a key home delivery customer, as well as “onerous” contract provisions relating to the customer loss.
However, the company remains optimistic, with a large, blue-chip portfolio of companies such as BAE Systems, Tata Chemicals Europe and Thales, along with a new major contract with Sainsbury’s to offset the loss of Morrisons, Lucozade and Ribena.
Summing up the group’s performance the strategic report concluded: “Wincanton delivered a robust financial and operational performance in a challenging external environment.”
It also noted that the £760m sale of Wincanton to GXO was “a testament to the group’s compelling strategy, operational excellence, strong customer relationships and talented team.”
In the meantime, GXO are facing their own problems with the Milan Prosecutor’s office accusing GXO of circumventing labour and tax laws. GXO said it fully complied with all applicable laws.
A GXO spokeswoman said: “Similar to multiple inquiries across the Italian logistics sector, the Milan public prosecutor’s office has initiated an inquiry into GXO’s relationship with certain cooperatives and GXO is actively collaborating with the public prosecutor.
“GXO fully complies with all applicable laws including Regulation 231, has rigorous controls and procedures in place, and has implemented a direct employment model for thousands of employees over the past several years, representing the majority of its Italian operations.”
The spokesman added: “GXO’s sites within Italy continue to operate as usual.”
