03 April 2012
Wincanton plc ('Wincanton' or the 'Group')
Trading Update
Wincanton, a leading provider of supply chain solutions in the UK & Ireland,
today issues the following trading update ahead of its preliminary results for
the year ended 31 March 2012, which will be announced on 14 June 2012.
The Group has continued to trade in line with its expectations for the year
ended 31 March 2012, as described in its Interim Management Statement on 9
February 2012.
The Group has been successful in retaining and winning a number of contracts
across all its market sectors. However, market conditions have been challenging
in the Retail and FMCG sectors and the Containers business, and we expect these
to remain for the year ahead. A number of the Group's customers are seeing a
decline in volumes, which is resulting in a reduced demand for warehouse space
and excess property in the Group. The Group has continued to perform well in
the businesses such as Pullman Fleet Services and Records Management and in our
Construction and Defence sectors.
For the medium term, the Group sees significant opportunities in further
enhancing its existing service offering. Therefore, the Group has committed
resource to develop more flexible and advanced product solutions, combining its
assets, best in class processes and system capabilities to help its customers
to improve further the performance of their supply chain.
For the year ending 31 March 2013, certain of the Group's businesses will be
adversely impacted as a result of the loss of volume, together with some excess
space and the decision to invest in future growth opportunities.
The Company continues to look for ways to reduce costs and make efficiency
improvements. The cost reduction measures undertaken during the year have
assisted the short term objective to stabilise the Group's profitability as was
set out in December 2010.
Following the disposals undertaken in the year ended 31 March 2012 and the
successful refinancing, the Group continues to review options to further reduce
its average net debt in order to achieve a more sustainable level in the
context of the Group's continuing operations.
Eric Born, Chief Executive commented:
"The year ended 31 March 2012 has been a year of transition for Wincanton, set
against an economic environment that is very difficult. The disposal of the
Mainland European businesses has enabled the Group to focus on the core UK and
Ireland businesses, reduce overall debt levels and refinance its existing bank
facilities. Our focus remains on stabilising and maximising opportunities in
the core business whilst developing product solutions that will provide
profitable growth in the future and enable us to further reduce our average net
debt."
Ends
For further information, please contact:
Wincanton plc
Eric Born, Chief Executive - 01249 710 000
Jon Kempster, Group Finance Director - 01249 710 000
Buchanan
Charles Ryland / Jeremy Garcia / Catherine Breen - 020 7466 5000
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