Wincanton’s core business performing „satisfactorily“

Following on from its interim management statement released on July 21, 2011, Wincanton has released a statement regarding the disposal of its Mainland Europe operations as well as its performance since the previous interim statement.

In its interim management statement Wincanton announced plans to dispose of its operations in Mainland Europe. The company expects to raise net cash proceeds of approximately €38.7m from the disposal. At a general meeting convening November 21, 2011 the company will propose a resolution to approve the disposal.

Following on from the the update in July, the company has released a further statement regarding the company’s performance in which it announced a satisfactory performance from its core UK & Ireland business, however the Containers business has not achieved its expected volume growth.

The statement said: "The core UK & Ireland business continues to trade satisfactorily. We have secured new business wins in the period which will start to contribute in the second half of the year ending March 2012 and will help offset business lost through customer receiverships.

"Our open book contracts provide resilience to short term fluctuations in volume, although some of our closed book contracts have experienced a mixed performance given the volume pressures. The Containers business has not achieved the year on year growth in volume that we forecast given the reduction in import activity and, as a result, profitability within the Containers business has been impacted. We are taking action to minimise on-going losses in our Foodservice business and to achieve an overall resolution; however, this will lead to exceptional charges in the results for the year ending March 2012.

"Whilst the overall economic environment remains very tough, we continue to seek ways to reduce costs and pursue attractive new business opportunities. As previously stated, the Group continues to manage its financial position prudently, with a particular focus on preserving cash. The net proceeds from the recent disposals of parts of our Mainland European business together with the Disposal subject to the circular posted to shareholders today will be used to reduce our overall average net debt. The Company manages its working capital during the financial year and, as a result, the impact on reported debt will be lower."

The company also announced that its interim results will be announced on November 10, 2011.

Quelle: eyefortransport 
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