Wincanton suspends dividend, extends credit facility
Wincanton
603.00p
16:34 25/04/24
Wincanton said on Thursday that group revenue in April was down 15% year-on-year, with “significant variations” in the level of performance across its businesses and segments, and a negative impact on year-to-date profitability.
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The London-listed firm did say, however, that there were “encouraging signs” of a gradual increase in activity levels in affected segments.
It said its focus was on cash management actions, including the furlough of 15% of its workforce, with the board and executive management taking a temporary 20% pay reduction.
The company also deferred pension recovery payments, and HMRC payments until the fourth quarter, while delaying non-business critical capital expenditure, and suspending the final dividend.
It confirmed that it had secured additional liquidity through a £40m revolving credit facility extension, available for 12 months from May, bringing the total available facility to £181m.
Wincanton said performance for the year ended 31 March was in line with market expectations, with revenue growth of over 5%.
“I am extremely proud of the response of our colleagues working in challenging circumstances and embracing the changes that have been required,” said chief executive officer James Wroath.
“Our priority remains the health and wellbeing of them and their families.
“The outlook is uncertain as we wait to see how the country will emerge from lock-down and the impact varies considerably across our diverse sectors.”
Wroath said he was “pleased” that the company had been able to secure an extension to its banking facilities, which would provide greater liquidity through the period of uncertainty.
“I am confident we are taking the right measures for the business and stakeholders to put Wincanton in the very best possible position to get through the coming months and to thrive in the longer term.”
At 0954 BST, shares in Wincanton were down 9.65% at 206p.