Wincanton: Strategy Paying Dividends
Edison | Aug 22, 2016 03:48AM ET
The resumption of a dividend following strong results is a clear signal that Wincanton (LON:WIN) has moved from deleveraging and addressing legacy issues to growth. With the £60m Records Management (WRM) disposal and forthcoming integration of the remaining specialist businesses into core logistics, Wincanton is positioning to leverage group-wide integrated opportunities. Recent contract wins have reconfirmed the longstanding relationship-based model, while the reorganisation into retail & consumer and industrial & transport segments will enable further market focus and service development to drive both revenue and efficiency.
Positive results achieved and dividend resumed
Full year results confirmed significant progress. Revenues increased 3.6% to £1.15bn (+4.4% l-f-l excluding WRM), while underlying operating profit was up 2.4% to £50.9m (+5.4% l-f-l). Underlying PBT grew 12.4% to £35.3m driven by lower financing costs due to reduced average net debt and prior year refinancing. Underlying EPS increased 13.3% to 23.9p and closing net debt was £39.5m (2015: £57.6m). This reflected good cash generation offset by onerous lease settlements, while the WRM proceeds were utilised to reduce the overall level of indebtedness and to normalise year end working capital resulting in lower intra-period volatility of net debt. This improved position allowed the board to recommend a final dividend of 5.5p, with a progressive policy in-line with earnings expected in future years.
To read the entire report Please click on the pdf File Below
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.