Logistics business Wincanton (WIN) attributed last year's 1 per cent increase in revenue to renewed contracts and high-profile business wins in the retail sector. These included long-standing clients WHSmith (SMWH), Marks and Spencer (MKS) and a new customer, US-based furniture retailer Williams-Sonoma.
Yet it was a close eye on costs that drove underlying operating profit (which excludes pension deficit gains and amortisation) up 6 per cent to £48m, boosting the underlying margin from 4.2 to 4.4 per cent. The freed-up cash pushed net debt down by 40 per cent - an achievement chief executive Eric Born said was "more important" to shareholders than the reintroduction of a dividend, which was once again postponed.
The pension deficit also appears to be under control. It now stands at £111m (from £149m in 2013), having booked a £16m net gain after 1,100 employees moved to a defined contribution scheme. The defined benefit part of the existing scheme closed at the end of March.
Meanwhile, the start of the new financial year is going well, Mr Born said, with the signs of recovery in the construction sector boosting business. Broker Numis Securities raised its pre-tax profit forecast for the current financial year by 5 per cent to £26.5m, giving EPS of 16p.
WINCANTON (WIN) | ||||
|---|---|---|---|---|
| ORD PRICE: | 131p | MARKET VALUE: | £159m | |
| TOUCH: | 129-132p | 12-MONTH HIGH: | 152p | LOW: 61p |
| DIVIDEND YIELD: | nil | PE RATIO: | 6 | |
| NET ASSET VALUE: | * | NET DEBT: | £64.9m | |
| Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 2.18 | 3.0 | 1.6 | 14.9 |
| 2011 | 1.33 | 3.6 | 3.7 | 4.8 |
| 2012 | 1.20 | -47.4 | -35.3 | nil |
| 2013 | 1.09 | 14.0 | 8.7 | nil |
| 2014 | 1.10 | 34.9 | 23.6 | nil |
| % change | +1 | +149 | +171 | - |
Ex-div: na Payment: na *Negative shareholders' funds | ||||
