Wincanton drives steady course with trading update, but its shares go into reverse

February 6, 2014

Shares in Wincanton, the Chippenham-based logistics group, dipped despite a trading update showing it is performing in line with market expectations.

In an interim management statement for the period from October 1 to last Thursday, the group said it had won new business and renewed a number of major contracts. These include a three-year extension to an existing transport management contract with Swindon-based WH Smith and a new contract with US furniture retailer Williams-Sonoma. 

It also said it had benefited from the early signs of recovery in the UK construction industry. Overall activity levels in its contract logistics division were broadly in line with the first half.

Its specialist businesses Pullman Fleet Services had performed robustly, winning new business with Asda to manage its home delivery fleet and with Argos to manage its HGV fleet. Wincanton Records Management continued to perform well but, as anticipated, volumes in its containers business remained broadly flat.

By mid-afternoon on the day of the statement its shares were trading down 5.25p, or 3.65%, at 138.75p. Some analysts had been expecting better figures from the announcement.

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