Wincanton back on the road

New business with Tilda and Lafarge, and extra work with the big supermarkets and the NHS meant Wincanton’s logistics operation was the key driver. Events in the prior year led to a 10 per cent fall in divisional revenue, but there were legacy benefits, too, and a 70 basis-point margin improvement to 4.1 per cent nudged underlying operating profit up a tenth to £38m. Higher margin bundled operations for Morrisons, Sainsbury’s and Asda helped, and Mr Born says returns could go slightly higher. He’ll cut costs if there's a hint of them falling. That’s what held margins steady at the struggling containers business where volume growth is negligible.

Net debt of £108m was also better than expected, yet average debt of £201m for the year bares the scars of massive European expansion a decade ago, and is still too high. Expect a "modest" chipping away ahead of refinancing in a few years' time.

Investec thinks new accounting rules will trim underlying pre-tax profit and EPS to £23.2m and 14.6p (from £32.1m and 20.4p in 2012).