9th Nov 2006 07:01
Wincanton PLC09 November 2006 For Immediate Release 9 November 2006 WINCANTON plc Interim Results for the half year ended 30 September 2006 (unaudited) "Another period of profit and dividend growth" 2006 2005 % £m £m change Revenue 931.8 879.8 Underlying operating profit 21.4 20.0 7.0% Net financing costs (4.4) (4.0) Associates - - Underlying profit before tax 17.0 16.0 6.3% Other items (net) (1.9) (0.8) Profit before tax 15.1 15.2 Underlying earnings per share 10.1p 9.5p 6 .3% Basic earnings per share 8.8p 9.1p Dividend per share 4.26p 3.94p 8.1% Note: Underlying profit before tax and earnings per share are stated beforeexceptional restructuring costs of £1.8m (2005: £1.4m), exceptional propertyprofits of £0.7m (2005: £0.8m) and amortisation of acquired intangibles of £0.8m(2005: £0.2m). Operating profit including these items amounted to £19.5m (2005:£19.2m). OPERATIONAL HIGHLIGHTS • 10% profit growth in the UK & Ireland; strong performance andcontinued momentum • Recent in-fill acquisitions enhance and expand service offering;profit contribution in H2 • Tariff increases in Mainland Europe address short-term H1 marginpressure; second half improvement expected FINANCIAL HIGHLIGHTS • Underlying operating profit up 7.0% to £21.4m • Underlying earnings per share up 6.3% • Dividend growth again significantly in excess of inflation at 8.1% Commenting on the results, Graeme McFaull, Wincanton Chief Executive, said: "These results build further on our track record of profit and dividend growth.We see continuing opportunity for growth across our businesses and geographies,both organically and through acquisition." For further enquiries please contact: Wincanton Graeme McFaull, Chief Executive +44 (0) 1249 710000 Gerard Connell, Group Finance Director Buchanan Communications Charles Ryland / Jeremy Garcia +44 (0) 207 466 5000 Half Year Review For the six months ended 30 September 2006 Introduction The six months to 30 September 2006 represented another period of profitprogress for Wincanton. Our strong customer base, our growing range of services,our expansion into new sectors and our Pan-European coverage again providedattractive opportunities for the Group. High levels of new business activity continue to be a key feature of ourperformance. Our UK & Ireland operations delivered an excellent result, with aprofit contribution up 10% on the same period last year. A shortage ofsub-contractor capacity in Mainland Europe led to short-term margin pressure anda weaker first half. Tariff increases to customers have now been implemented anda better financial performance is expected in the remainder of the year. The Board has declared an interim dividend of 4.26p, an increase of 8.1% on lastyear's dividend of 3.94p. Wincanton's track record of profitable growth, itshigh returns on capital employed and its strong cashflow have enabled the Boardto consistently recommend dividend increases significantly in excess ofinflation. Two UK companies were purchased shortly after the period end, for a totalinvestment of up to £36m, providing further evidence of the Group's ability tosupplement organic growth with reasonably-priced infill acquisitions. Theacquisitions bring market-leading positions in the building products andconstruction industries, and in home delivery, which we believe to be marketswhich offer attractive growth prospects. We expect these acquisitions to add tothe already strong growth momentum of our operations in the UK & Ireland. UK & Ireland The recently-announced contract renewal and extension with Somerfield, underwhich Wincanton becomes the sole logistics provider to the high streetsupermarket chain, confirms Wincanton's market-leading position in the retailsector. Estimated to generate turnover of some £900m over its 5-year life, thisis believed to represent the largest contact award in the UK this year. Otherwins in grocery retail included seasonal relief operations for Tesco andSainsbury and a new composite facility for Sainsbury to support the continuingdevelopment of its convenience store offering. In general retail we commissioneda new 700,000 sq ft direct import centre for Argos at Kettering, and alsosuccessfully opened an inland container port which has already secured volumesfrom Dixons, Argos and UTI. Both these initiatives result from our strategy ofworking with our significant retail customer base to increase the efficiency oftheir in-bound logistics. Another recent gain in the general retail sector is anewly-commissioned 540,000 sq ft warehouse for the fast-growing retailerScrewFix, part of the Kingfisher Group. Our major new primary transport contract for Britvic was successfully launchedin April. The strength of our transport management services, across a broadrange of customers and sectors, was further evidenced in the period by businesswins with customers such as Hotpoint, Panasonic, LDH La Doria and Hanson.Incremental transport business was also won with existing customers such asStylo, WH Smith and Woolworth. Gainshare initiatives, based on leveragingWincanton's significant presence in the UK to deliver increased transportefficiencies for customers, have the potential to deliver incremental profitimprovement. The first half saw further progress in a number of our ancillary activities. Ourin-store services unit secured further business with B&Q and new business withStaples. Our document storage operations in Dublin and London are securing newvolumes for their recently expanded facilities and Consilium, our consultancybusiness, was awarded assignments by, amongst others, B&Q, Chevron, BritishBakeries and Wyevale Garden Centres. Pullman Fleet Services, our contractmaintenance operation, reported lower profits as a consequence of net businesslosses and contract start-up costs but nonetheless delivered new business withcustomers such as Hill Hire, Iceland and Sainsbury. Contract renewals in the UK & Ireland in the period included contracts withArgos, BP Castrol, Dairy Crest, Husqvarna, Marks & Spencer and Musgrave. Mainland Europe The new management teams and organisational structures put in place in MainlandEurope earlier this year are having a positive effect upon our operationalcapabilities, our business development pipeline and the market's awareness ofWincanton. Financial performance in the first half was, however, adverselyaffected by short-term margin pressure and reported operating profit was downfrom £1.8m to £1.4m. Increased levels of economic activity led, in a number of our markets, to ashortage of sub-contractor capacity. This was particularly marked in ourDutch-based international transport activities although it also affected grossmargins in domestic transport operations in countries such as Germany, Polandand Spain. These cost increases are progressively being recovered from customersand a better second half is anticipated, particularly in road transport. Othernegative factors in the first half were a poor performance and continuing lossesin Spain, and lower than expected results from a contract start-up in CentralEurope. Further steps to address the performance of the Spanish business arebeing taken and the contract start-up issues in the Czech Republic have beenresolved. We were pleased with the contribution from our enlarged French operations. Newbusiness was won with both new and existing customers including Kronenbourg,Christophle and Kiala. For Kronenbourg we are building a new distribution centrein Strasbourg. Christophle, the tableware company, brought new volumes to anexisting site. Kiala, an internet fulfilment company, is a further addition to agrowing customer portfolio in internet, TV and catalogue retailing. Unutilisedcapacity in certain shared user sites may be a constraint on the speed of profitprogress, but we are already seeing incremental opportunities in France as aconsequence of our increased scale and market presence. Higher levels of investment in sales and marketing, including a furtherstrengthening of our key account management structure, are also beginning toenhance our business development pipelines across Mainland Europe. New businesswas won in Germany in the period with customers such as VW, Elco, Optimus, MANand Wurth. Recent contract gains and renewals in our international freightmanagement business in Holland included Sony, Rohm & Haas and Ford. We alsoremain encouraged by the continuing opportunities for expansion in Central andEastern Europe. Gains in the period included international transport for LGElectronics, Fagor and Electrolux, domestic transport for Ford, Volvo and Jaguarand a warehousing and distribution centre for Bridgestone in Poland. We havealso recently been awarded a contract to commission a new 250,000 sq ft facilityfor Henkel in Hungary, adding to the business already managed for this customerin both France and Germany. Financial Review Group turnover, at £931.8m, was 5.9% higher than for the same period last year.Underlying operating profit, at £21.4m, was 7.0% ahead of last year. In a strong first half, the UK & Ireland delivered a 10% increase in operatingprofit, to £20.0m, on turnover unchanged at £575.1m. Revenues in Mainland Europeincreased by 16.7%, to £356.7m but operating profit declined from £1.8m to£1.4m. Net exceptional costs of £1.1m were incurred in the first half. A £1.8m chargearose from the exit from our Spanish vehicle fleet, which involved theredundancy of 33 drivers, and from the final post-acquisition integration costsin France. An exceptional profit of £0.7m was realised on the disposal of aproperty in Grangemouth, the most recent sale in our programme of surplusproperty disposals. Further property disposals are anticipated in the secondhalf which we would expect to offset the exceptional costs incurred in the year. Net debt at the half year stood at £85.7m compared to £60.6m at 31 March 2006,principally as a consequence of payments of £27m to the pension fund, as agreedwith the scheme trustees, consisting of £23m relating to the balance of the £40mup-front contribution and £4m being the first half payment of the agreed £8mincremental annual contribution. Our two recently-announced acquisitions, at acombined cost of up to £36m, will increase the Group's year-end debt. Net financing costs increased from £4.0m to £4.4m, giving underlying profitbefore tax up 6.3% to £17.0m. A tax charge of 31%, and no deductions forminority interests, produced underlying earnings of £11.7m, an 8.3% increase onlast year. Underlying earnings per share, at 10.1p per share, increased at theslightly lower rate of 6.3% as a consequence of an increase of 1.4m shares inthe Group's average issued share capital through the exercise of share options. Dividend The Board has declared an interim dividend of 4.26p, an increase of 8.1% on lastyear's dividend of 3.94p. This will be paid on 10 January, 2007 to shareholderson the register at 8 December, 2006. Pensions The changes in pension policy that remained subject to employee consultation atthe year end, which related principally to the cost of future service accrual,have now been agreed and implemented. Outlook We expect to see the encouraging momentum of our UK & Ireland businessescontinue into the second half, supplemented by initial contributions from ourrecent acquisitions. We see the UK & Ireland continuing to be the key driver ofthe Group's medium-term growth. An improved performance is anticipated in thesecond half from our Mainland European operations. We expect the full year to be another year of operational and strategic progressfor Wincanton and see attractive opportunities for further development, bothorganically and through acquisition. Wincanton is well-placed, with a leading position in a fragmented market, tobuild further on its track record of consistent profitable growth. David Malpas Chairman 8 November 2006 Consolidated income statement for the half year ended 30 September 2006 (unaudited) Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March 2006 2005 2006 £m £m £m Note Revenue 2 931.8 879.8 1,809.3 Underlying operating profit 2 21.4 20.0 42.0 Amortisation of acquired (0.8) (0.2) (1.0) intangibles Exceptional restructuring costs 3 (1.8) (1.4) (8.1) Exceptional property profits 3 0.7 0.8 8.1 Operating profit 19.5 19.2 41.0 Financial income 4 1.7 0.9 2.0 Financial expenses 4 (6.1) (4.9) (11.7) Net financing costs (4.4) (4.0) (9.7) Share of results of associates - - - Profit before tax 15.1 15.2 31.3 Income tax expense 5 (5.0) (4.6) (8.4) Profit for the period 10.1 10.6 22.9 Attributable to - equity shareholders of Wincanton 10.1 10.4 22.7 plc - minority interests - 0.2 0.2 Profit for the period 10.1 10.6 22.9 Earnings per share 8 - basic 9.1p 4.2p 16.419p - basic 8.8p 9.1p 19.9p - diluted 8.6p 9.0p 19.5p Dividend declared and paid in the 9.9 8.8 13.3 period (£m) All operations in the above financial periods were continuing. The dividend per share proposed in respect of the above period is 4.26p (2005:3.94p). Consolidated statement of recognised income and expense for the half year ended 30 September 2006 (unaudited) Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March 2006 2005 2006 £m £m £m Actuarial gain/(loss) on defined benefitpension schemes (net of deferred tax) 14.9 - (46.7)Net foreign exchange (loss)/gain oninvestment in foreign subsidiaries net ofhedged items (0.8) 0.5 0.3Tax taken directly to or transferred from - - 0.7equity Net profit/(loss) recognised directly in 14.1 0.5 (45.7)equity Profit for the period 10.1 10.6 22.9 24.2 11.1 (22.8) Effect of change in accounting policy Adoption of IAS 39 on 1 April 2005, net of - - (0.1)tax Total recognised income and expense for 24.2 11.1 (22.9)the period Attributable to - equity shareholders of Wincanton plc 24.2 10.9 (23.1)- minority interests - 0.2 0.2 Total recognised income and expense for 24.2 11.1 (22.9)the period Consolidated balance sheet at 30 September 2006 (unaudited) 30 Sept 30 Sept 31 March 2006 2005 2006 Note £m £m £m Non-current assets Restated Goodwill and intangible 68.8 49.3 71.7assets Property, plant and equipment 226.7 235.5 232.5 Investments 0.6 0.8 0.8 Deferred tax assets 21.9 16.4 32.3 318.0 302.0 337.3 Current assets Inventories 7.6 6.7 7.4 Trade and other receivables 330.8 306.0 310.8 Cash and cash equivalents 6 50.6 44.2 56.1 389.0 356.9 374.3 Current liabilities Income tax payable (5.2) (5.6) (5.6) Borrowings 6 (16.3) (1.8) (3.2)Trade and other payables (419.5) (404.8) (412.9) Employee benefits (6.4) (3.9) (7.5) Provisions (17.5) (14.3) (16.5) (464.9) (430.4) (445.7) Net current liabilities (75.9) (73.5) (71.4) Total assets less current 242.1 228.5 265.9liabilities Non-current liabilities Borrowings 6 (120.0) (90.3) (113.5)Other payables (1.0) (3.2) (1.3) Employee benefits (95.7) (98.5) (144.8) Provisions (44.5) (36.4) (42.9) Deferred tax liabilities (1.1) (1.8) (1.1) (262.3) (230.2) (303.6) Net liabilities (20.2) (1.7) (37.7) Equity Issued share capital 12.0 11.8 11.8 Share premium 8.5 4.8 6.5 Merger reserve 3.5 3.5 3.5 Translation reserve 1.9 2.9 2.7 Retained earnings (46.4) (25.1) (62.5) Equity deficit attributableto shareholders of Wincantonplc (20.5) (2.1) (38.0) Minority interest 0.3 0.4 0.3 Total equity deficit 10 (20.2) (1.7) (37.7) Consolidated statement of cash flows for the half year ended 30 September 2006 (unaudited) Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March Note 2006 2005 2006 £m £m £mOperating activities Profit before tax 15.1 15.2 31.3 Adjustments for - depreciation and 17.1 15.9 33.8amortisation - interest expense 4.4 4.0 9.7 - profit on sale of property, plant (0.7) (0.8) (8.1)and equipment - share-based payments fair 0.7 0.3 1.1value charges Operating profit before changes in working 36.6 34.6 67.8capital and provisions Increase in trade and other (23.7) (22.3) (2.8)receivables Increase in inventories (0.3) (0.7) (1.1) Increase in trade and other 12.2 27.0 9.0payables Increase/(decrease) in 1.5 (0.1) (1.1)provisions Decrease in employee (28.2) (0.7) (17.3)benefits provisions Cash generated from (38.5) 3.2 (13.3)operations Cash flows from operating (1.9) 37.8 54.5activities Investing activities Proceeds from sale of property, plant 3.8 7.9 24.0and equipment Interest received 0.7 1.2 2.0 Sale of investments 0.1 - - Acquisitions net of cash acquired 9 - 0.7 (21.4)Acquisition of property, plant and (16.7) (25.4) (40.3)equipment Interest paid (4.4) (3.3) (7.6) Income taxes paid (1.3) (2.6) (3.0) Cash flows from investing (17.8) (21.5) (46.3)activities Financing activities Proceeds from the issue of 2.2 0.5 2.2share capital Movement in shares held by Employee 0.3 - -Benefit Trust Increase/(decrease) in 22.3 (25.2) (1.5)borrowings Payment of finance lease (0.3) (0.5) (1.5)liabilities Dividends paid to minority interest in - (0.2) (0.3)subsidiary undertakings Equity dividends paid (9.9) (8.8) (13.3) Cash flows from financing 14.6 (34.2) (14.4)activities Net decrease in cash and cash (5.1) (17.9) (6.2)equivalents Cash and cash equivalents at 56.1 61.9 61.9beginning of year Effect of exchange rate (0.4) 0.2 0.4fluctuations on cash held Cash and cash equivalents at end 50.6 44.2 56.1of year Represented by - cash at bank and in hand 21.3 12.3 26.3 - restricted cash, being deposits held by the 29.3 31.9 29.8Group's captive insurer 50.6 44.2 56.1 Notes to the Interim Report for the half year ended 30 September 2006 (unaudited) 1 Status of Interim Report and basis of preparation The Interim Report was approved by the Board on 8 November 2006. The financialinformation set out herein is unaudited but has been reviewed by the auditorsand their report to the Company is set out on page 16. The financial information contained in the Interim Report does not constitutestatutory accounts. The comparative figures for the half year ended 30 September2005 have been extracted from the Group's Interim Report for that period. Thecomparative figures for the financial year ended 31 March 2006 have beenextracted from the Group's statutory accounts for that financial year and thoseaccounts have been reported on by the Group's auditors and delivered to theRegistrar of Companies. The report of the auditors was (i) unqualified, (ii) didnot include a reference to any matters to which the auditors drew attention byway of emphasis without qualifying their report, and (iii) did not contain astatement under Section 237(2) or (3) of the Companies Act 1985. The financial information contained in the Interim Report has been prepared onthe basis of the accounting policies and presentation set out in, and applied inthe preparation of, the Group's published, consolidated financial statements forthe year ended 31 March 2006. 2 Segment information Segment information is presented in respect of the Group's geographicalsegments, being the primary segmentation format based on the Group's managementand internal reporting structure. As the secondary segment is the business ofcontract logistics services which encompasses the entire scope of Wincanton'soperations, no further segment analysis is required. The Group operates in two principal geographical areas, the United Kingdom &Ireland, and Mainland Europe. In presenting information on the basis ofgeographical segments, segment revenue and assets are based on the geographicallocation of the business operations. Segment results include items directly attributable to a segment as well asthose that can be allocated on a reasonable basis. UK & Ireland Mainland Europe Consolidated Half Half Year Half Half Year Half Half Year year year ended year year ended year year ended ended ended 31 ended ended 31 ended ended 31 30 Sept March 30 Sept March 30 Sept March 30 2005 2006 30 2005 2006 30 2005 2006 Sept Sept Sept 2006 2006 2006 £m £m £m £m £m £m £m £m £mRevenue 575.1 574.1 1,156.3 356.7 305.7 653.0 931.8 879.8 1,809.3Underlying 20.0 18.2 37.8 1.4 1.8 4.2 21.4 20.0 42.0operatingprofit bysegmentAmortisation - - - (0.8) (0.2) (1.0) (0.8) (0.2) (1.0)of acquiredintangiblesExceptional - (1.4) (3.9) (1.8) - (4.2) (1.8) (1.4) (8.1)restructuringcostsExceptional 0.7 0.8 8.0 - - 0.1 0.7 0.8 8.1propertyprofitsOperating 20.7 17.6 41.9 (1.2) 1.6 (0.9) 19.5 19.2 41.0profit Notes to the Interim Report (continued) 3 Exceptionals Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March 2006 2005 2006 £m £m £mExceptional restructuring costs Reorganisation of operating structure (0.2) - (0.9)post-acquisitionRelocation of UK head office and business - (1.4) (4.2)rationalisationClosure of operations in Spain (2006 year (1.6) - (3.0)end: Germany) (1.8) (1.4) (8.1) Exceptional property profits - sale of 0.7 0.8 8.1freehold land & buildings 4 Net financing costs Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March 2006 2005 2006 £m £m £mInterest income 0.7 0.9 2.0Expected return on defined benefit pension 16.1 - -scheme assetsInterest on defined benefit pension scheme (15.1) - -obligations 1.7 0.9 2.0Interest expense (4.7) (3.6) (8.2)Finance charges payable in respect of finance (0.2) (0.2) (0.5)leasesInterest on defined benefit pension scheme - (13.0) (26.0)obligationsExpected return on defined benefit pension - 12.8 24.6scheme assetsUnwinding of discount on insurance and other (1.2) (0.9) (2.0)provisions (6.1) (4.9) (12.1)Less finance costs capitalised - - 0.4 (6.1) (4.9) (11.7)Net financing costs (4.4) (4.0) (9.7) Notes to the Interim Report (continued) 5 Income tax expense Half year Half year Year ended ended ended 30 Sept 30 Sept 31 March 2006 2005 2006Recognised in the income statement £m £m £m Current tax expenseCurrent year 0.7 4.0 2.3Adjustments for prior years - - (0.9) 0.7 4.0 1.4 Deferred tax expenseCurrent year 4.3 0.6 6.4Adjustments for prior years - - 0.6 4.3 0.6 7.0 Total income tax expense in the 5.0 4.6 8.4income statement Notes to the Interim Report (continued) 6 Analysis of net debt 30 Sept 30 Sept 31 March 2006 2005 2006 £m £m £mCash and cash equivalentsCash at bank and in hand 21.3 12.3 26.3Restricted cash, being deposits held 29.3 31.9 29.8by the Group's captive insurer 50.6 44.2 56.1 BorrowingsCurrentBank loans and overdrafts (15.2) (0.8) (2.1)Finance lease liabilities (1.1) (1.0) (1.1) (16.3) (1.8) (3.2) Non-currentUS$ private placement (86.4) - (88.4)Bank loans (29.7) (85.4) (20.9)Finance lease liabilities (3.9) (4.9) (4.2) (120.0) (90.3) (113.5) Total net debt (85.7) (47.9) (60.6) 7 Dividends An interim dividend is proposed of 4.26p per share to be paid on 10 January 2007to shareholders on the register on 8 December 2006. Under IFRS the proposed dividend is not shown as a charge to the incomestatement, but is accounted for when it becomes a liability of the Company. Thetotal of the interim dividend is expected to be £5.0m (2005: Interim £4.5m). InAugust 2006 the final dividend of 8.60p per share was paid to shareholders, atotal of £9.9m. Notes to the Interim Report (continued) 8 Earnings per share Earnings per share are calculated on the basis of earnings attributable to theequity shareholders of Wincanton plc of £10.1m (2005: £10.4m) and the weightedaverage of 115.3m (2005:113.9m) shares which have been in issue throughout theperiod. The diluted earnings per share are calculated on the basis of anadditional 2.0m (2005: 1.4m) shares deemed to have been issued at £nilconsideration under the Company's share option schemes. An alternative earnings per share number is shown below, being beforeexceptionals, amortisation of acquired intangibles, goodwill impairment andrelated tax, since the Directors consider that this provides further informationon the underlying performance of the Group. Half year Half year ended ended Year ended 30 Sept 30 Sept 31 March 2006 2005 2006 pence pence penceUnderlying earnings per share- basic 10.1 9.5 19.2- diluted 10.0 9.3 18.9 Underlying earnings are determined as follows: Half year Half year ended ended Year ended 30 Sept 2006 30 Sept 2005 31 March 2006 £m £m £mProfit for the periodattributable to equityshareholders of Wincanton plc 10.1 10.4 22.7Exceptional restructuring 1.8 1.4 8.1costs (note 3)Exceptional property profits (0.7) (0.8) (8.1)(note 3)Amortisation of acquired 0.8 0.2 1.0intangiblesTax on the above items (0.3) (0.4) (1.7) Underlying earnings 11.7 10.8 22.0 9 Acquisitions The fair value adjustments relating to the acquisition of Premium Logistics on 7October 2005 have been reviewed and revised, as permitted under IFRS 3 BusinessCombinations. As a result the value of intangible assets recognised has beenreduced by £1.2m, and the fair values of property, plant and equipment and ofprovisions have been revised by £2.2m and £1.0m respectively. These adjustmentsreflect the increased understanding of the contractual obligations acquired.Accordingly an additional amount of goodwill has been recognised of £2.9m, aftertax. In line with IFRS 3 these adjustments have been reflected at the date ofacquisition and the prior year balance sheet restated accordingly. 10 Reconciliation of movements in capital and reserves Issued Share Merger Translation Retained Minority Total share premium reserve reserve earnings equity capital deficit £m £m £m £m £m £m £mBalance at 1 April 2006 11.8 6.5 3.5 2.7 (62.5) 0.3 (37.7)Total recognised incomeand expense - - - (0.8) 25.0 - 24.2Increase in IFRS2 - - - - 0.7 - 0.7reserveMovement in shares held - - - - 0.3 - 0.3by EBTShares issued 0.2 2.0 - - - - 2.2Dividends to - - - - (9.9) - (9.9)shareholdersBalance at 30 September 12.0 8.5 3.5 1.9 (46.4) 0.3 (20.2)2006 Balance at 1 April 2005 11.7 4.4 3.5 2.4 (26.9) 0.4 (4.5)Total recognised incomeand expense - - - 0.5 10.4 0.2 11.1Increase in IFRS2 - - - - 0.2 - 0.2reserveShares issued 0.1 0.4 - - - - 0.5Dividends to - - - - (8.8) (0.2) (9.0)shareholdersBalance at 30 September 11.8 4.8 3.5 2.9 (25.1) 0.4 (1.7)2005 Balance at 1 April 2005 11.7 4.4 3.5 2.4 (26.9) 0.4 (4.5)Total recognised income - - - 0.3 (23.4) 0.2 (22.9)and expenseIncrease in IFRS2 - - - - 1.1 - 1.1reserveShares issued 0.1 2.1 - - - - 2.2Dividends to - - - - (13.3) (0.3) (13.6)shareholdersBalance at 31 March 11.8 6.5 3.5 2.7 (62.5) 0.3 (37.7)2006 Independent review report to Wincanton plc Introduction We have been instructed by the Company to review the financial information forthe six months ended 30 September 2006 which comprises the consolidated incomestatement, the statement of recognised income and expense, the balance sheet,statement of cashflows and related notes. We have read the other informationcontained in the Interim Report and considered whether it contains any apparentmisstatements or material inconsistencies with the financial information. This report is made solely to the Company in accordance with the terms of ourengagement to assist the Company in meeting the requirements of the ListingRules of the Financial Services Authority. Our review has been undertaken sothat we might state to the Company those matters we are required to state to itin this report and for no other purpose. To the fullest extent permitted by law,we do not accept or assume responsibility to anyone other than the Company forour review work, for this report, or for the conclusions we have reached. Directors' responsibilities The Interim Report, including the financial information contained therein, isthe responsibility of, and has been approved by, the Directors. The Directorsare responsible for preparing the Interim Report in accordance with the ListingRules of the Financial Services Authority which require that the accountingpolicies and presentation applied to the interim figures should be consistentwith those applied in preparing the preceding annual accounts except where anychanges, and the reasons for them, are disclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4: Review of interim financial information issued by the Auditing PracticesBoard for use in the UK. A review consists principally of making enquiries ofGroup management and applying analytical procedures to the financial informationand underlying financial data and, based thereon, assessing whether theaccounting policies and presentation have been consistently applied unlessotherwise disclosed. A review excludes audit procedures such as tests ofcontrols and verification of assets, liabilities and transactions. It issubstantially less in scope than an audit performed in accordance withInternational Standards on Auditing (UK and Ireland) and therefore provides alower level of assurance than an audit. Accordingly, we do not express an auditopinion on the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 September 2006. KPMG Audit PlcChartered Accountants 100 Temple Street Bristol BS1 6AG 8 November 2006 SHAREHOLDER INFORMATION Shares traded ex-dividend 6 December 2006Record date for interim dividend 1 8 December 2006Interim dividend paid 10 January 2007Preliminary announcement of full year June 2007resultsAnnual General Meeting July 2007Interim results and dividend November 2007announced 1 Shareholders on the register at this date will receive the dividend. SHAREHOLDER ENQUIRIES All administrative enquiries relating to shareholdings should, in the firstinstance, be directed to the Registrar at the following address: Lloyds TSB Registrars The Causeway Worthing West Sussex BN99 6DA This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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