5th Feb 2015 08:40
LONDON (Alliance News) - Supply chain services company Wincanton PLC saw its shares fall Thursday morning after it said overall trading continued to be in line with expectations, but highlighted that margins have remained under pressure in its Pullman Fleet Services business.
In a trading update, Wincanton also said the fall in fuel prices has had no "material impact" on the group's profitability, saying that contractual arrangements typically pass any fuel price risk through to the end customer.
"As fuel costs are mainly a flow through cost for Wincanton, the impact of the recent fall in fuel prices is largely limited to a modest decrease in gross costs and corresponding revenues year over year," the company said in the statement.
Wincanton however said that while the overall profit performance from its Specialist Businesses were in line with expectations, margins remain under pressure in its Pullman Fleet Services business in the second half of the year.
The group's Specialist Businesses segment comprises of its Containers, Wincanton Records Management and Pullman Fleet Services businesses.
Wincanton shares were down 7.1% at 166.25 pence Thursday morning.
Within its Contract Logistics division, the group said it has managed to successfully secure new business wins, both with existing and new customers.
"The construction sector continues to see good levels of activity which has supported further contract awards," it said.
In the Defence sector, contract wins included a new contract with BAE Systems PLC to provide it with logistics and warehousing services to support its UK shipbuilding operations, a deal the company announced last month.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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