Kevin Gainey: Appreciate the question. I actually — I think Baris mentioned this earlier, but I wanted to make a comparison on the current pipeline versus the bookings that you guys did in ’23. And it goes through the appetite for automation. I think previously said that a lot of the bookings in ’23 weren’t very automated, and I was wondering how the pipeline for ’24 stacked up against that.
Richard Cawston: Yes. Absolutely. We see, as we say, we’ve demonstrated growth in our pipeline, the win of that pipeline and the turn and our automation is a continuous elevating feature of that. So, in 2023, over half of our wins had an automated element within them. And in our current pipeline, we see around £500 million of automation within there. So, it’s a continued requirement. As I said, there’s no RFQ goes to a customer without automation in. And automation can come is a ramp-up we can build out at the beginning. For example, like Levi or if you take the partnership, the landmark partnership we announced last year, what we’ve just finished integrating this year of Sainsbury is one of the largest wins in the Company’s history. We are automation over several steps and sequences and that will just bring to life more and more continued efficiency to help our customer be super competitive in their market.
Kevin Gainey: Sounds good. And then maybe if you guys could touch on if there’s a change in maybe customer how customers feel with GXO with the addition of Wincanton can and the industrials opportunity set that they provide you guys?
Malcolm Wilson: Kevin, it’s Malcolm here. I mean it’s very early days. What we can say is when we think about our existing customers, they’ve been very delighted at this deal because you can imagine, we have many, many customers here in North America that want us to provide services for them across all of Europe — but there’s always a hesitation with customers. They like to be able to touch and feel and see in the location in the territory, like kind of services. So, the addition of Wincanton will allow us now to showcase many existing operations. And I think that’s when we come to talk about synergy savings. That’s why we feel pretty good about that aspect. Likewise, when they consider the impact in terms of Wincanton customers, again, we’ve had really positive feedback.
There’s very little customer crossover where the reason in fact, there’s a small number of customers where we have joint services. But in fact, the services that we actually offer are different services. So even in regard to those customers, they’re actually quite pleased to — for the first time, they will start to see a kind of common decision-making, which will help the business planning process also. So, all in all, I think it’s been very, very positive feedback many of the industrial customers that sit today in Wincanton, the public sector aerospace customers. What it does do is it opens up the door for them on pan-European services and also where they have activities in North America for the first time as one organization, we’ll be able to support them.
So generally, I think we feel very good about the top line benefits that are going to come from this role this deal. But as we saw in Clipper, Germany is really on fire for us now. It’s two years after the deal was done, and it does take whilst cost synergies, you can be very predictable about the timing. Revenue synergies they need to work around existing contract timings, the opportunities have changed. So, they tend to be a little bit longer lead time on those. But we would expect to be really seeing a material impact from a revenue opportunity synergy, probably two years down the line is when you’ll start to see a lot of that activity.
Operator: Thank you. Ladies and gentlemen, that is all the time we have questions for today. I’d like to hand the call back to management for any closing remarks.
A – Malcolm Wilson: Thanks, Camilla, and thanks for hosting the call with us today. We really appreciate it. We’ve seen our growth inflect positively in quarter one and believe that we’ll see that continue sequentially improving throughout 2024 as consumer spending for goods starts to recover. We’re driving great service and efficiency benefits for both new and our existing customer base, and that’s reflected in the 55% uplift in first quarter wins and in that growing sales pipeline that Richard’s commented on. GXO, we’re investing to capture a greater share of a strengthening market, which continues to be driven by organizations looking to our expertise in the deployment of warehouse automation and technologies, AI. As a company, we’ll continue to deliver great shareholder value, and we look forward to showing the benefit of our acquisition of Wincanton to you during the balance of 2024 and beyond.
With that, I’d like to wish everybody a great rest of the day. Thanks for joining us today, and we appreciate all of your attendance. Thank you.
Operator: Ladies and gentlemen, this concludes today’s teleconference. Thank you for your participation. You may now disconnect your lines at this time, and have a wonderful day.
