31st Aug 2007 08:44
Wincanton PLC31 August 2007 For immediate release 31 August 2007----------------------- ---------------- Wincanton plc ("Wincanton" or "the Group") Favourable Outcome to Arbitration Wincanton announced on 4th February 2005 that PGN Logistics ("PGN"), a jointventure company in which Wincanton has a 50% interest, was commencing anarbitration process both to recover debt due from CNH, its principal customer,in respect of logistics services provided, and to seek compensation for theearly termination of its contract for the continuing provision of theseservices. In the year to 31 March 2004, PGN contributed approximately £1.8m toWincanton's adjusted earnings, after taxation and a minority interest charge.The value in the Group balance sheet of Wincanton's share of the debt due fromCNH, as at 31st March 2004, was approximately £8 million. Wincanton is pleased to report that the decision of the arbitrators in respectof the PGN proceedings has now been received. The arbitrators have found thatCNH was not entitled to terminate its agreement with PGN. In consequence PGN isentitled in principle to payment of its invoices for services rendered to CNH,together with damages for lost profits including to the end of 2005 for certainservices and to the end of 2007 for others. A further hearing to establish the amount due to PGN is scheduled for October2007 and the decision and payment is expected in early 2008. For further information please contact: Wincanton plcGraeme McFaull, Chief Executive 01249 710 000Gerard Connell, Group Finance Director Buchanan CommunicationsCharles Ryland / Jeremy Garcia 020 7466 5000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
WIN.L