Wincanton secures contract extension with Ikea

Logistics provider Wincanton said on Thursday that it has been awarded contract extensions by Ikea to operate its customer distribution centres in Medway, Kent and Harlow, Essex, for five and two years respectively.

Chief executive officer James Wroath said this is another important step in the company’s long-standing relationship with Ikea and more evidence of the positive progress it is making in its Digital and eFulfilment business.

"We are proud to have supported Ikea in achieving significant volume growth in the past year and these extensions reflect both the success of our partnership and the underlying strength of Wincanton's broad supply chain capabilities," he said.

At 0930 BST, the shares were up 1.7% at 427p.

Broker Liberum, which has a ‘buy’ rating on Wincanton, said: "As contract extensions these will not materially impact our forecasts. However, this is evidence of Wincanton’s encouraging momentum in contract renewals and new business wins.

"Despite the recent re-rating, we believe the market continues to underestimate Wincanton’s growth rate and potential, including its exposure to Digital and eFulfilment growth across a range of online and multichannel retail segments."