Wincanton PLC Disposal of Wincanton's containers operations
RNS Number : 0740B
05 October 2020
5 October 2020
('Wincanton' or the 'Group')
Disposal of Wincanton's containers operations
Wincanton plc, the largest British third-party logistics
company, today announces it has signed a conditional agreement to
dispose of the operations of its container business ("Containers")
to Maritime, a UK-based, intermodal logistics company.
The operations will be sold for a consideration of approximately
GBP1.5m. Net liabilities of approximately GBP1.0m, primarily in
respect of leased fleet, will transfer to the buyer. After fees and
provision for costs of separation, the Group expects to report a
small exceptional gain on disposal.
The disposal of Containers is aligned with the Group's strategy
of focusing on its core markets that offer the greatest potential
for growth. Containers, which sits within Specialist Services in
the Group's new reporting structure, provides port to distribution
centre container logistics services. The business is subject to a
high-level of volatility in the daily demand for its services and
the short-term nature of its contracts differs from Wincanton's
core business model, where visibility of earnings is prioritised.
Containers is likely to require investment within the next two
years and Wincanton is committed to directing investment towards
higher value areas of the Group.
The transaction will reduce the Group's annual revenue by
approximately GBP60m and will lead to a small increase in the
Group's underlying profit before tax.
James Wroath, Chief Executive Officer of Wincanton, said:
"This transaction is an important step in our strategy to focus
our efforts and resources on the exciting growth opportunities we
see in our core markets. I would like to thank all our colleagues
in the container business for their professionalism and service to
our customers during Wincanton's period of ownership and we wish
them well for the future."
For further information please contact:
Wincanton Plc Tel: +44 1249 710000
Tim Lawlor, Chief Financial Officer
Headland Tel: +44 20 3805 4822
Susanna Voyle/ Henry Wallers/ Jane Glover
Notes to Editors
Wincanton is the largest British third-party logistics (3PL)
company, providing supply chain solutions to some of the world's
most admired companies across a wide range of industries including
retail, construction, defence and energy.
As a trusted and respected business partner, we design and
implement services and solutions that range from setting up and
operating distribution networks, through to bonded warehouses,
technology hosting, container transport and storage. We strive for
operational excellence in everything we do.
We work hard to understand and respond to our customers' needs,
build long-term relationships and use our skills and expertise to
deliver a smarter, added value service, every day. Our customers
rely on us to make their businesses operate more efficiently and to
gain a competitive advantage in their sector.
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(END) Dow Jones Newswires
October 05, 2020 05:00 ET (09:00 GMT)