7th Nov 2013 13:08
LONDON (Alliance News) - British-based logistics provider Wincanton PLC Thursday reported lower revenues in the first half of the year, but higher profits, boosted by new business wins and contract renewals across its sectors.
The group said it decided not to declare a dividend payment, as it continues to reduce its net debt, and said it expects to experience continued margin pressure on contract renewals due to a highly competitive market.
However, Wincanton said that it continues to trade in line with market expectations for the full year, as its remains focused on tight cost control and increased asset efficiency.
Wincanton reported a pretax profit of GBP9.7 million for the six months to September 30, compared with GBP7.6 million a year earlier.
It said that profits were driven by a number of new business wins and contract renewals from clients including Morrison PLC, Sainsbury PLC, Valero and Tilda Rice.
It reported basic earnings per share of 6.4 pence, compared with 4.4 pence the prior year.
Wincanton said that revenues in the first half fell by 1.6% to GBP542.3 million, from GBP551.2 million a year earlier.
It said that reported revenues from its contract logistic business fell 0.7% to GBP461.8 million, largely due to the loss of an energy contract, although it said this was partly offset by stronger volumes and contract wins in the construction and retail sectors.
Wincanton said that revenues from its specialist businesses fell 6.6% to GBP80.5 million, due to a weak UK container transport market and an overall decline in volume.
Net debt was reduced by 29% to GBP87.2 million.
Wincanton shares were trading 3.7% lower Thursday afternoon, at 125.14 pence per share.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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