Wincanton Plc – Preliminary Announcement of Results
Wincanton plc (“Wincanton” or the “Group”), a leading provider of supply chain solutions in the UK and Ireland, today announces its preliminary results for the year to 31 March 2014.
– Revenue growth of 1.1% underpinned by a strong programme of renewals and new wins delivered across all sectors
– WH Smith and Valero renewed for 3 and 5 years respectively
– Warehousing operations and transport for new market entrant Williams-Sonoma, Inc
-Underlying operating profit increased by 6.0% to £48.0m (2013: £45.3m)
– Increase in underlying margin from 4.2% to 4.4% driven by ongoing cost reduction measures across the organisation
– Future pension risk reduced with closure of defined benefit pension scheme to future accrual with effect from 31 March 2014
– Pension deficit reduced by £37.8m to £110.9m at 31 March 2014 (2013: £148.7m)
• Net debt reduced to £64.9m (2013: £107.6m). Average net debt reduced by £33m from £201m to £168m
1 Comparatives have been restated for the adoption of IAS 19 Employee Benefits (Revised).
Note: Underlying measures of performance for EBITDA, operating profit, profit before tax and earnings per share are stated before net other items of £9.3m (2013: £(7.3)m), comprising amortisation of acquired intangibles of £(6.5)m (2013: £(7.3)m) and a net gain on pension benefits of £15.8m (2013: £nil). Operating profit, including these items, amounted to £57.3m (2013: £38.0m).
Eric Born, Wincanton Chief Executive commented:
“We are very pleased to report continued good progress against our strategy in the year with underlying operating profit growth of 6%, underlying EPS growth of 25% and a second year of clean trading results. Our supply chain, logistics expertise and reputation for the delivery of operational excellence has enabled the Group to achieve a strong stream of contract renewals and new business wins during the year.
We have also made significant progress in reducing net debt during the year as well as taking the necessary steps to limit future pension risk by closing the defined benefit pension scheme to future accrual.”