Wincanton had "another period of profit progress" in the six months to September 30, with a key feature of continued high levels of new business activity. The UK and Ireland operations delivered "an excellent result". A major new primary transport contract with Britvic starting in April was one element. There were business wins with Hotpoint, Panasonic and Hanson and a number of incremental transport wins with existing customers, including Stylo, Woolworths and WH Smith.
A shortage of
sub-contractor capacity in mainland Europe led to a short-term pressure and a weaker first half there. Operating profit fell to £1.4m from £1.8m in the first half of last year. French operations performed well, however and Wincanton has been awarded a contract to commission a 25,000sq m. facility in Hungary for Henkel, a customer already in France and in Germany. Group turnover rose 5.9% to £931.8m and underlying operating profit rose by 7% to £21.4m.
The UK and Ireland saw turnover unchanged at £575.1m but operating profit 10% higher at £20m. Turnover in mainland Europe rose by 16.7% to £356.7m. Net debt rose to £85.7m from £60m, as a result of a payment into the pension fund. The outlook was encouraging in the UK and Ireland, which will remain the key driver of growth in the medium term. Wincanton is well-placed in a fragmented market to achieve consistent profitable growth, it says.
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