Wincanton

WINCANTON SET ON PROFITABLE GROWTH FOLLOWING EUROPEAN SELL-OFF AND BANK REFINANCING ANNOUNCEMENTS

Disposal of mainland European operations and £260 million bank refinancing mean company can focus on UK and Ireland growth

Leading provider of supply chain solutions, Wincanton plc, has now shed the final part of its mainland European operations and set its sights on sustained profitable growth in the UK and Ireland.

In addition Wincanton and its shareholders have received a boost with news that the company has successfully concluded the £260 million refinancing of its existing bank facility, which was due to expire in November 2012.

Earlier this week the company, which is still the largest UK-owned logistics and supply chain specialist, told the London Stock Exchange it had completed the disposal of its unprofitable or sub-scale mainland European operations.

Wincanton‘s Chief Executive, Eric Born, said the European sale and refinancing announcements meant the company could forge ahead with plans to deliver profitable growth in the UK and Ireland.

“This is an important step in the overall repositioning of Wincanton following the withdrawal from mainland Europe,” he said.

“It ensures that Wincanton has appropriate funding in place and a maturity profile that enables us to focus on delivering profitable growth, which in turn will enable us to reduce current average debt levels as we build on the solid UK and Ireland business and generate positive cash-flow.”

Mr Born added that the company has identified key areas for delivering growth in 2012 and beyond, including collaborative transport for customers and addressing supply chain issues connected with the boom in multi-channel retailing.

“Our customers have come to expect new and innovative ways for us to improve through efficiencies,” he said. “Collaborative transport – where our customers share resources – fits into our existing sustainable transport model and allows us to build on our promise to deliver value despite challenging market conditions.”

Turning to another growth area, multi-channel retailing, Mr Born said: “The explosion in internet retailing presents an exciting growth sector that throws up all kinds of supply-chain challenges for which Wincanton is finding and rolling out solutions for our new and existing customers.

“We‘re working hard to ensure that in this digital, multi-channel, age we too continue to innovate and provide cost-effective solutions, whilst at the same time delivering profitable growth in a demanding sector.”

Ends