Updates from two leading logistics and warehousing groups, Wincanton (WIN) and Xpediator (XPD), reveal that the surge in demand for delivery services over the past year shows no sign of slowing.
Both firms reported revenue growth of more than 25% year to date, citing strong volumes and new business wins. For Wincanton, the strongest growth rates have been in Digital and eFulfilment, and Public and Industrial sectors.
The firm admitted that driver shortages ‘continue to have an impact on business operations’ and it was pulling out all the stops to attract and retain drivers. However, over 70% of its contracts are open-book which means it can pass on higher costs to customers.
Wincanton also announced the £23.9 million acquisition of specialist mid-market eCommerce and eFulfilment firm Cygnia Logistics, which adds annual revenues of around £45 million and consumer-facing customers such as BrewDog, Moonpig (MOON), Molton Brown and Revolution Beauty (REVB). The deal is expected to be earnings accretive by the end of the current financial year next March.
Xpediator, which provides logistics services in the UK and across central and eastern Europe, posted a 27% jump in first half turnover to June due to strong growth in freight forwarding, logistics and warehousing, mainly from its European operations.
‘All divisions performed well, but particularly impressive was the performance of our freight forwarding division with Lithuania and Bulgaria reporting strong results’, commented chairman Alex Borelli.
In the UK, the firm signed a strategic partnership with eFulfilment company Synergy Retail Support and is set to open a new 200,000 square foot warehouse extension in Southampton due to increased customer demand.
The firm said it expects ‘a further strong operational and financial performance in the second half’ and made no mention of driver shortages or supply chain strains.
Shares in Wincanton gained 1.3% to 387p at midday while Xpediator shares dropped 5% to 69p after almost trebling in the past year.
