Wincanton: Losses double as GXO takeover decision drags on
Losses at Wincanton have doubled after leaving the London Stock Exchange as a decision over its acquisition by GXO has still yet to be made.
The Wiltshire-headquartered business slipped into the red for the first time in more than 20 years in the year to 31 March, 2024 – posting a pre-tax loss of £44.9m.
The loss was the first time the company has recorded a pre-tax loss since it became listed on the London Stock Exchange in 2001.
However, new accounts filed with Companies House have revealed Wincanton slumped to a pre-tax loss of £88.4m in the remaining nine months of 2024.
Wincanton’s revenue totalled £1.4bn in the 12 months to March 2024 and £1.1bn over the last nine months of the year.
A GXO spokesperson said: “Wincanton is a world class business, with a high-quality team and proven expertise in the UK and Ireland.
“It continues to grow well, and we continue to work towards clearance of the combination and bringing together these two great businesses.”
Wincanton takeover decision expected soon
Wincanton was taken private in January 2024 after US company GXO took it over in a deal worth £762m.
However, a month after the deal was confirmed, the Competition and Markets Authority (CMA) launched an investigation into the acquisition – a decision on which has still to be announced.
In April this year, the CMA pushed back its deadline for making a final call by another two months.
That came after the watchdog said in November 2024 that the takeover could lead to higher prices for business customers in the UK.
In February this year, the CMA said the deal is likely to reduce competition and bump up costs for supermarkets stocking up shelves.
Wincanton said its pre-tax loss was driven by non-underlying charges totalling £123m.
These included costs related to the acquisition by GXO, an impairment of one of its multi-user sites with an “associated onerous provision” for contracts operating within that site and “other non-underlying charges”.
Wincanton is currently being held as a separate business to GXO until the CMA makes its decision.
The watchdog is now expected to announce its ruling on or before 25 June.