Wincanton (WIN) has been busy since we made the distributor one of our Tips of the Year in January (132p, 2 Jan 2014). It's won extra work with WH Smith and US furniture retailer Williams-Sonoma, which has generated "solid levels of activity" at the core contract logistics division. Maintenance contracts with Argos and a petrol delivery deal with Phillips 66 are lucrative too.
Investec Securities is baffled by the recent dip in Wincanton’s share price, which it believes represents a further buying opportunity. Indeed, there have been no nasty surprises and the business is trading in line with expectations. The broker expects results on 5 June to confirm adjusted pre-tax profit of £23.2m for the year to March and adjusted EPS of 14.1p. The figures are expected to rise to £25.5m and 15.6p in 2015.