News

Wincanton has posted a drop in half-year profit and turnover, but the company says its UK operations remain strong, and it has taken action to improve its performance in mainland Europe.

Pre-tax profit at the transport group for the six months leading up to September fell 16% to £18m, from £21.4m the previous year.

Operating profit was £26m in the first half, compared with £30.6m in the corresponding period in 2008 – this represents  a drop of 15%.

Revenue also went down 10% to £1.08bn from £1.2bn the same time last year.

This year, Wincanton has closed parts of its UK home delivery business and loss-making depots in Germany.

However, in September, the firm announced it had won £275m of new business from Marks & Spencer.

Wincanton chief executive Graeme McFaull says: "We remain on track to deliver a full year performance in line with expectations.

"Our UK operations remain strong, and we have taken decisive action to address underperformance in mainland Europe. We are confident that our businesses have significant growth and recovery potential as the European economy emerges from recession."