Wincanton PLC
31 August 2007
For immediate release 31 August 2007
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Wincanton plc
('Wincanton' or 'the Group')
Favourable Outcome to Arbitration
Wincanton announced on 4th February 2005 that PGN Logistics ('PGN'), a joint
venture company in which Wincanton has a 50% interest, was commencing an
arbitration process both to recover debt due from CNH, its principal customer,
in respect of logistics services provided, and to seek compensation for the
early termination of its contract for the continuing provision of these
services. In the year to 31 March 2004, PGN contributed approximately £1.8m to
Wincanton's adjusted earnings, after taxation and a minority interest charge.
The value in the Group balance sheet of Wincanton's share of the debt due from
CNH, as at 31st March 2004, was approximately £8 million.
Wincanton is pleased to report that the decision of the arbitrators in respect
of the PGN proceedings has now been received. The arbitrators have found that
CNH was not entitled to terminate its agreement with PGN. In consequence PGN is
entitled in principle to payment of its invoices for services rendered to CNH,
together with damages for lost profits including to the end of 2005 for certain
services and to the end of 2007 for others.
A further hearing to establish the amount due to PGN is scheduled for October
2007 and the decision and payment is expected in early 2008.
For further information please contact:
Wincanton plc
Graeme McFaull, Chief Executive 01249 710 000
Gerard Connell, Group Finance Director
Buchanan Communications
Charles Ryland / Jeremy Garcia 020 7466 5000
This information is provided by RNS
The company news service from the London Stock Exchange
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