6th Feb 2014 10:24
LONDON (Alliance News) - Logistics services business Wincanton PLC Wednesday said it has traded in line with market expectations and has renewed a number of profitable contracts since October 1, 2013.
During the period, the group renewed its contract with high-street stationer WH Smith PLC for its transport management services for an additional three years, and secured new business with US housewares retailer Williams-Sonoma Inc to provide warehousing and home delivery services.
The financial terms of the deal were not disclosed.
Overall activity within its Contract Logistics division - which signed the two contracts - have been broadly in line with the first half of the year, Wincanton said.
The firm said its vehicle repair and maintenance arm, Pullman Fleet Services, has performed robustly, winning new business with supermarket chain Asda Stores Ltd to manage its home delivery fleet and with Argos to manage its heavy goods vehicle fleet. Asda is owned by the US's Wal-Mart Stores Inc.
Catalogue merchant Argos has been a staple of the UK high street since the 1970s, selling general goods including toys and kitchen utensils across its 740 stores. Together with sister company Homebase, it forms part of the Home Retail Group PLC alongside household furnishings firm Habitat.
Again, Wincaton did not disclose the financial details of the deal.
Wincanton said there has been no significant change to its financial position from that outlined in September last year.
The group is also currently in discussions with staff over the proposed closure of the Wincanton Defined Benefit pension scheme to future accrual.
Wincanton said going forward, current active members of the scheme, around 7.5% of the workforce, will be offered alternative pension provision within its range of defined contributions pension arrangements.
Subject to approval, Wincanton expects the change to take effect from April 1.
The stock was trading at 140.00 pence Thursday morning, down 4.00 pence or 2.8%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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