Logistics firm Wincanton is back on the acquisition trail, not even a year after its last spending spree when it acquired Lane Group and RDL Distribution. The Chippenham-based firm says it is reviewing a number of possible acquisition targets and has reached the stage of talks with several companies, according to group chief executive Graeme McFaull.
He says: "We are actively reviewing five or six potential targets and in discussion with a couple." McFaull, who says the takeover targets
are located in both the UK and in mainland Europe, stresses that much depends on the target company's culture, whether it is a good fit with Wincanton and also a good price.
His comments came as Wincanton revealed a 10.2% increase in underlying profit for the year to March 2007. Underlying profit grew to £35.6m from £32.3m in 2006 while turnover climbed nearly 7% to more than £1.9 billion from £1.8 billion. Pre-tax profit rose slightly to £32.6m from £31.3m previously.
McFaull points to continuing organic growth - 70% of growth is being generated from existing customers who are expanding - as one of the main reasons for the strong performance. And the purchase of RDL and Lane has also helped Wincanton move into new sectors and expand its service offering.
"There is a polarised market in the UK where we and DHL are two clear leaders in that market," says McFaull. "We have grown our market share over the last 12 months."
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