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Wincanton wins Weetabix

Wincanton's balance sheet represents a risk, but trading is improving and its shares' valuation is low
January 17, 2019

Soon Wincanton (WIN) will be responsible for delivering a British favourite to supermarkets. The logistics company recently announced a deal with Weetabix to provide transport, warehousing and co-packing services, effective from February 2019. The new partnership is made up of two separate five-year contracts, and demonstrates Wincanton’s ability to attract new customers while maintaining existing ones.

IC TIP: Buy at 234p
Tip style
Speculative
Risk rating
High
Timescale
Short Term
Bull points

​​​​​​New contract win

Brexit resilience

Improving margins

Falling debt

Bear points

High pension and lease liabilities

Weak transport business

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