Logistics & distribution services provider Wincanton’s trading performance was in line with expectations during the period from April 1st 2011, according to an interim management statement published yesterday.
The three-month period has coincided with the business securing a renewed supplier deal with home & DIY retailer B&Q and winning a contract to provide logistical operations for youth fashion retailer Jack Wills.
Wincanton revealed that its mainland European business has started the financial year well as restructuring across the group continues, but the widespread problems in the UK retail industry have ultimately had an impact on trading.
“Trading conditions remain challenging in certain areas, including containers where volumes have been lower than expected,” the company statement said.
“We have also been impacted by the closure of Focus DIY, a long term customer of the group.”
Focus DIY collapsed in May, and a number of the home & DIY specialist’s competitors such as Wickes and B&Q parent firm Kingfisher purchased stores from administrators.
Wincanton said in June that its pre-tax losses mounted up to £25.9 million in the year to March 31st 2011, although it benefits from some £600 million in revenue from its retail customer base.
Other retail clients include general merchandiser WHSmith, grocer Sainsbury’s and Irish supermarket Superquinn, which was this week bought out of receivership by wholesaler Musgrave Group.
Musgrave said on Tuesday that it is currently working to try and maintain relationships with all Superquinn’s current suppliers.