Wincanton’s shares dive after major contract loss
On Tuesday, 3PL giant Wincanton saw a major profit dip of 35% after the loss of a major British Government contract.
The company has been notified by HM Revenue and Customs of its decision to move to another supplier for the provision of logistics services to support UK customs arrangements at inland border facilities, following a retendering process.
The contract will be transferred by June 2023.
The company has issued a pre-closing trading statement in which it says it is ‘extremely disappointed’ to lose this particular contract, after a ‘well-executed implementation delivered in exceptionally shortened timescales and acknowledged strong performance over the past two years.’
However, Wincanton remains a strategic government commercial partner with major contracts with HMRC, Defra, the Department for Health and Social Care and the Cabinet Office.
The contract involved the provision of logistics services to support UK customs to operate and establish inland depots and storage locations for imported goods for sea, air, road, and rail freight.
The five-year contract which was first awarded to Wincanton in 2019, had an estimated value of £71 million ($85.43 million).
The company has also warned that it expects other ‘challenging external’ factors in the coming financial year.