Wincanton Plc (LON:WIN) confirmed high levels of activity in recent weeks as the haulage and logistics sector continues to play a key role in the UK’s supply-chain amid the coronavirus (Covid-19) pandemic.
“We have recently experienced record levels of demand for our services from many of our leading customers and current indications are that good levels of demand will be maintained in those sectors during the period being impacted by COVID-19,” Wincanton said in a trading statement.
Ahead of its financial results statement, Wincanton said that underlying profit will be in line with market expectations. It added that net debt will be down to between £10mln and £15mln, meanwhile, at 4% revenue growth is seen slightly ahead of expectations.
Wincanton added that its balance sheet was strengthened “very considerably” in recent years, with net debt and pension deficits improving. It noted that it has “very substantial headroom” for its banking covenants and it retains a £141.2mln revolving credit facility with maturity set for 2023.
Nonetheless, the company is presently taking additional steps to maximise liquidity headroom, to allow for any slowdown in trading or delays in payments.
Presently, it is scheduled to release financial results on 20 May though the company noted it would confirm the date nearer the time.
When results are released, the company doesn’t expect to include guidance for the financial year to 31 March 2021 until there’s greater clarity.
Wincanton rounded off its update, stating: “We are highly conscious of the need to manage cash carefully but expect to have sufficient balance sheet strength to see us through this period of extreme turbulence.
“Logistics are crucial for most of our customers and for the country in general and in the medium term we remain confident in the ongoing demand for our services and positive about the growth prospects for our business.”