5th Jun 2014 11:35
LONDON (Alliance News) - Wincanton PLC Thursday saw its shares rise Thursday, after the supply-chain services provider said it more than doubled its profit in its last financial year, boosted by a profit gain from its pension scheme, with revenue growth supported by new business wins.
Wincanton said it will focus on building its pipeline in the year ahead, as well as winning market share and capturing customer opportunities through the cross-selling of products and services.
The group reported a pretax profit of GBP34.9 million for the year ended March 31, compared with a GBP14.0 million profit a year earlier.
It said its profit for the year was supported by lower interest charges due to lower net debt levels, as well as a net pension gain of GBP15.8 million, principally from the closure of the group's pension arrangements to future accrual.
Revenues in the year rose 1.1% to GBP1.09 billion from the GBP1.8 billion reported the prior year, which it said was underpinned by a strong programme of renewals and new contract wins across the business, including a three-year extension to its transport management contract with WH Smith PLC.
Wincanton said the increase in its underlying margin to 4.4% from 4.2% was driven by ongoing cost reduction measures across the business.
"We have also made significant progress in reducing net debt during the year as well as taking the necessary steps to limit future pension risk by closing the defined benefit pension scheme to future accrual," said Chief Executive Eric Born in a statement.
The group said it managed to reduce its net debt by almost 40% in the year, to GBP64.9 million, down from GBP107.6 million a year earlier.
Wincanton shares rose 8.8% by Thursday midday, trading at 129.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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