Ceva Logistics pulls out of race with GXO to acquire Wincanton
Ceva Logistics has formally given up on its plan to acquire the UK’s Wincanton. The CMA ...
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Wincanton released a trading update that boosted its stock today, up 14.4% at the end of the session.
The company said:
The group has seen a continued improvement in profitability in July and August, with a particularly strong performance in Digital and eFulfilment.
The Digital and eFulfilment business is benefitting from an increase in demand for online retail, with revenue significantly ahead of pre-COVID-19 levels. Volumes in the two-person home delivery business within this sector have remained high through the summer months. Furthermore, operational efficiencies have led to an improvement in operating margins in Digital and eFulfilment.
Performance across the rest of the group is encouraging, supported by changes to the cost base implemented earlier in the year in the face of challenging external conditions.
The balance sheet remains healthy, with strong cash collection and a robust working capital position. (…) The board expects results for the current year to be materially ahead of market expectations. This continues to assume no further Covid-19 impact that severely affects the business.
The full release can be found here.
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