Logistics firm Wincanton, which has a depot in Gloucester, has seen its annual profits fall by 30%.

Pre-tax profit fell 30.3 per cent to £38.2 million in the year to the end of March after some corporate customers insourced their warehouse and delivery needs to cut costs. The drop also reflected one-off costs relating to transport reorganisation and computer software it uses for some of its clients.

However, it was by no means all bad news for Wincanton. Excluding these costs, pre-tax profit rose 6% to £62 million - a record for the company and slightly ahead of some analysts' expectations, which sent Wincanton shares rising. And revenue rose 2.9 per cent to £1.46 billion.

The firm gained new business momentum which was sustained with major customer wins secured across the group's four sectors. Contract renewals were agreed with long-standing customers including Sainsbury's, Waitrose & Partners, Wickes, Co-op and Halfords.

Wincanton CEO James Wroath said: "Our strategy delivered a strong result in FY23 despite the prevailing macro-economic challenges, particularly with regard to retail volumes and inflation.

"We continue to invest in technology as the route to deliver competitive advantage in the industry. Significant opportunities remain for warehouse automation across our group, both in the foundation sectors and strategic growth markets.

"Furthermore, our transport operations have had a shift in focus with technology at the heart of our new market proposition. I am thankful to the Wincanton team who has delivered excellent performance in a difficult economy. Their determination and innovation will continue to be essential, as we expect volumes to remain under pressure into FY24 due to the macro-economic environment."