TIDMWIN

RNS Number : 0740B

Wincanton PLC

05 October 2020

 
   5 October 2020 
 

Wincanton PLC

('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."

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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

E: wincanton@headlandconsultancy.com

Notes to Editors

About Wincanton

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)

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