Wincanton PLC WIN Half Year Results

  Wincanton PLC (WIN) - Half Year Results

RNS Number : 8164Q
Wincanton PLC
12 November 2012




For immediate release 12 November 2012

                                      

                                WINCANTON plc

                                      

   Half Year Results for the six months ended 30 September 2012 (unaudited)

                                      

             Improved performance and strategic progress achieved



Wincanton plc ("Wincanton" or "the Group"), a leading provider of supply chain
solutions in the UK & Ireland, today  announces its half year results for  the 
six months ended 30 September 2012.

                                      

Key Points



· Underlying performance of  the Group has been  positive with good  wins 
assisting future growth, including the following within the retail sector

o Agreement with B&Q to support their multi-channel operations across the UK

o Five-year contract with Morrisons to  operate its first ever dedicated  UK 
convenience distribution centre in London

· Future  growth  continues to  be  supported by  investment  to  develop 
product and service extensions

· Current trading in line with expectations



Financial Key Points

· Revenue £551.2m (2011 - £625.4m)

· Underlying operating profit £24.3m (2011 - £22.3m)

· Underlying profit before tax of £17.1m (2011 - £14.2m)

· Profit before tax £13.0m (2011 - £13.6m loss)

· Underlying earnings per share 10.6p (2011 - 9.0p)

· Basic earnings per share 8.0p (2011 - 9.0p loss)

· Net debt £123.0m (£114.5m at 31 March 2012)



Note: Amounts stated relate to continuing operations only. Underlying profit
before tax and earnings per share are  stated before net other items of  £4.1m 
(2011: £27.8m), comprising exceptional restructuring  and other costs of  £nil 
(2011: £23.7m),  and  amortisation of  acquired  intangibles of  £4.1m  (2011: 
£4.1m). Operating profit,  including these items,  amounted to £20.2m  (2011: 
loss of £5.5m). Profit before tax, including these items, amounted to  £13.0m 
(2011: loss of £13.6m).



Eric Born, Chief Executive commented:

"The first six months of the current financial year reflect the progress the
Group has made over the last 18 months. Our strategy to achieve a clear
leadership position in the UK & Ireland supply chain market continues to
gather momentum and our recent new business successes are a clear indication
of how this is now delivering tangible results".



"Our new business pipeline remains healthy and we continue to be successful in
securing significant levels of customer contract renewals. We remain acutely
focused on margin growth and free cash flow generation."





For further enquiries please contact:



Wincanton plc                        

Eric Born, Chief Executive           Tel: 020 7466 5000 today, thereafter

Jon Kempster, Group Finance Director Tel: 01249 710000

                                     
                                    

Buchanan                             

Jeremy Garcia or Gabriella Clinkard  Tel: 020 7466 5000

Half Year Review

for the six months to 30 September 2012



Introduction



During the  six  months to  30  September 2012,  the  Group has  made  further 
progress in  executing its  strategy. Our  stated  aim is  to be  the  leading 
partner in the UK & Ireland, helping our customers to unlock the potential  in 
their  supply  chains.  We  achieve  this  through  the  combination  of   our 
operational excellence and outstanding delivery track record, our expertise in
solution design  and  market  leading  system  capabilities.  Our  operational 
capabilities are in warehousing, multi-modal transport and specialist services
across a  broad range  of market  sectors such  as retail,  defence,  consumer 
goods, manufacturing, construction, milk and energy.



The Group is  progressing as  expected, realigning its  cost base  to fit  its 
organic growth strategy, with all  resources focused on operational  delivery, 
further business  improvement  and profitable  growth  in the  UK  &  Ireland. 
Operational efficiencies and  cost savings,  alongside new  business wins  and 
further product and service development will provide the impetus required  for 
profitable growth.



The underlying performance of the  Group in the period  has been good. We  are 
especially pleased  to  have won  new  contracts  in the  retail  sector  with 
customers such as  B&Q and  Morrisons. This  is continued  recognition of  our 
operational credentials. Importantly  the contract wins  and renewals see  our 
retail business improve in overall performance terms. Within the construction
sector and containers business, we continue to see uncertain economic  trading 
conditions impacting volumes in the short term.



Retailers and manufacturers are increasingly seeking to engage with  Wincanton 
where value added services  are required over and  above what can be  achieved 
in-house, reflecting the breadth and depth of our expertise. Specific examples
of this include collaborative transport solutions, operational and  technology 
solutions to  support  multi-channel  retailing and  shared  user  warehousing 
backed by leading  edge systems. To  this end, Wincanton's  ability to  deploy 
market leading IT processes has allowed us to gain a competitive advantage  in 
order to meet the  requirements of our customers  for cost efficient, best  in 
class technology. Our recently announced  contract win with Morrisons for  the 
operation of their  first convenience distribution  centre in London  included 
the deployment of  our systems platform  which, in addition  to the  warehouse 
contract,  demonstrates  how  we  can   assist  customers  in  the   strategic 
development of new supply chain activities.



Contract logistics



                               2012    2011
Revenue                     £465.0m £534.5m
Underlying operating profit  £20.1m  £17.5m
Margin                         4.3%    3.3%



Overall the Contract logistics business  has performed well in what  continues 
to be a challenging economic climate.  Important wins in the period include  a 
new contract  with B&Q  for the  operation of  its 1  million sq  ft  showroom 
fulfilment centre. Within our shared user warehousing portfolio we have  added 
business with Ella's  Kitchen and  Unilever and new  transport contracts  were 
secured with CEMEX UK and Smyths Toys.  The decline in revenue in the  current 
period in the most part results  from the insourced contracts last year  which 
have yet to be offset by the new contract wins we have secured in the  current 
year. Our  new contract  wins commence  in  the last  quarter of  our  current 
financial year.



Our open book contracts,  which account for approximately  60% of revenue  and 
are primarily with the  major retailers, continue to  provide a stable  profit 
stream supported  by  resilience  to  volume  levels.  Renewals  included  the 
Doncaster and  Larne warehouses  for Asda,  warehousing and  distribution  for 
Musgrave Retail Partners in Northern Ireland and transport operations for  The 
Co-operative Group  servicing  over  1,000  stores.  Within  the  closed  book 
portfolio which accounts for approximately 40%  of revenue, we have enjoyed  a 
strong performance  renewing contracts  during the  period with  Dairy  Crest, 
AvantiGas, Marley Eternit and Neal's Yard Remedies.



Specialist businesses



                              2012   2011
Revenue                     £86.2m £90.9m
Underlying operating profit  £4.2m  £4.8m
Margin                        4.9%   5.3%



Our Specialist businesses are  made up of  three separate trading  activities; 
Containers, Pullman  and  Records  Management.  The  Containers  business  has 
continued to increase efficiency and  productivity but these beneficial  steps 
have not  been  able to  counter  the  general volume  weakness.  The  Pullman 
business has traded  satisfactorily in  the period  and continues  to look  at 
providing cost saving opportunities for its customer base whilst expanding its
fleet management services. The  Records Management business  has had a  strong 
start to  the year,  securing new  contracts with  AIB, the  Scottish NHS  and 
Thomson Reuters.



Discontinued operations



The discontinued operations comprise the Mainland Europe businesses that  were 
disposed of in the year ended 31 March 2012.



No profit or loss in relation  to discontinued operations has been  recognised 
in the six months to 30 September 2012.



Profit and loss summary



Continuing operations



Revenue for the six months was £551.2m (2011: £625.4m) down 11.9% against last
year. Underlying  operating profit  was £24.3m  representing an  increase  of 
£2.0m compared with  last year.  Overall margins  at 4.4%  are much  improved 
against the equivalent six months last year (2011: 3.6%) and the 3.6% for  the 
full year ended March 2012.



Net financing charges were £7.2m compared with £8.1m last year. The charge in
the period includes  amortised arrangement fees  of £0.7m, discount  unwinding 
charges of £1.3m and an IAS 19 pension net financing credit of £2.1m  compared 
with the previous half year of £1.5m, £0.9m and £2.6m respectively.



Underlying profit before tax  is £17.1m compared with  £14.2m last year  which 
translates into an underlying EPS of 10.6p (2011: 9.0p).



There were no  exceptional items in  the current period,  whilst in the  prior 
period there was a  £23.7m charge for  the costs of the  phased exit from  the 
Foodservice  business  including  asset  write  downs  and  onerous   contract 
provisions.



The total  operating result  for  the period  after amortisation  of  acquired 
intangibles and exceptionals in the prior  year, of £4.1m (2011: £27.8m) is  a 
profit of £20.2m (2011: £(5.5)m loss).  After net financing charges of  £7.2m 
(2011: £8.1m) the  profit before tax  for the year  is £13.0m (2011:  £(13.6)m 
loss).



Balance Sheet and Cash Flow



Net debt of £123.0m at 30 September 2012 compares to £114.5m at 31 March  2012 
and £177.6m at 30 September 2011. Reduction in the average net debt levels  is 
a priority for the  Group. Average net  debt for the six  months of c.  £210m 
compares favourably  to the  equivalent  last year  of  c. £290m.  The  Group 
continues to  operate  well within  its  banking covenants  and  continues  to 
maintain strong relationships with its major lenders.



Capital expenditure of £3.7m compared with £5.5m in the same period last year,
the latter part of the total of £11.4m shown as a comparative on the cash flow
which includes the discontinued businesses. The working capital outflow in the
period of £23.7m  arises primarily,  as expected,  from the  reduction in  the 
management of purchase ledger  balances at the reporting  date as compared  to 
the last year end, plus a  marginal increase in the trade debtors  receivable. 
Lastly, certain of  the provisions made  within exceptionals at  the year  end 
have been paid in the period and result in outflows of £5.1m for restructuring
costs and £6.4m  (£4.4m specifically  relates to the  onerous lease  provision 
provided  in  the  prior  year  accounts)  in  respect  of  onerous   property 
liabilities.



The IAS 19 pension deficit at the  end of September 2012 was £114.7m  compared 
with £68.1m last year and £118.2m at the year end.



Dividend



As the Board has stated previously,  the Group is committed to reduce  average 
debt levels before the reinstatement of a dividend.



Risks



The key risks  and uncertainties facing  Wincanton in the  second half of  the 
current financial year have not changed materially from those outlined in  the 
Annual Report for the year ended  31 March 2012. The principal commercial  and 
operational risks  are the  Group's ability  to source  new contracts,  at  an 
appropriate financial return for an  acceptable level of risk, and  subsequent 
performance of new and existing contracts. The average net debt level and  the 
desire to  reduce  the  debt  level  will assist  in  achieving  a  long  term 
sustainable capital structure.



Outlook



The  Board  is  pleased  to   report  that  Wincanton  continues  to   perform 
satisfactorily and in line with expectations.



We continue to work  alongside our valued customers  to provide the  excellent 
operational service delivery and value proposition they expect. The renewal of
existing contracts  remains  a priority  and  will continue  to  underpin  our 
success. The Group also remains focused on pursuing opportunities to  further 
assist our existing and new customers within the wider supply chain arena.



We are encouraged to see further new contract wins that will assist the  Group 
over the next 18 months and have seen some initial opportunities to expand the
product and  service  range  to  our  traditional  customers  and  also  other 
groupings, such as mid-tier retailers.



Whilst the  challenge  is undoubtedly  greater  against the  current  economic 
environment, many of the  actions already underway  throughout the Group  will 
enable us to take advantage of any market upturn and we expect to make further
progress in the remainder of the year.







Statement of Directors' responsibilities



The Board confirms to the best of their knowledge:



· that the consolidated half year financial statements for the six months
to 30 September  2012 have been  prepared in accordance  with IAS 34  'Interim 
Financial Reporting' amended in accordance  to changes in IAS 1  'Presentation 
of Financial Statements', as adopted by the EU; and



· that the  Half Year Report  includes a fair  review of the  information 
required by  sections 4.2.7R  and 4.2.8R  of the  Disclosure and  Transparency 
Rules, being an indication of important  events that have occurred during  the 
period and their impact on the consolidated half year financial statements;  a 
description of the principal risks and uncertainties for the remainder of  the 
current financial year; and the disclosure requirements in respect of material
related party transactions.



The composition of the Board of Directors has changed since the publication of
the Annual  Report in  June 2012.  David Radcliffe  and Martin  Sawkins  were 
appointed as non-executive Directors on 27 July 2012 and Neil England  retired 
from the Board on 31 July 2012.



The above Statement of Directors'  responsibilities was approved by the  Board 
on 9 November 2012.



Consolidated income statement

for the six months to 30 September 2012 (unaudited)

                                         Six months   Six months      Year
                                                  to           to
                                                                     ended
                                             30 Sept      30 Sept
                                                                  31 March 
                                                2012         2011
                                                                      2012
                                                  £m           £m
                              Note                                       £m
Continuing operations:
Revenue                                 2      551.2        625.4      1,202.8
Share of results of associates                     -          0.7          1.3
Underlying operating profit             2       24.3         22.3         43.8
Amortisation of acquired intangibles           (4.1)        (4.1)        (8.2)
Exceptional restructuring and other     3          -       (23.7)       (68.0)
costs
Operating profit /(loss)                        20.2        (5.5)       (32.4)
Financing income                        4        2.4          2.7          5.5
Financing cost                          4      (9.6)       (10.8)       (20.5)
Net financing costs                            (7.2)        (8.1)       (15.0)
Profit/(loss) before tax from                   13.0       (13.6)       (47.4)
continuing operations
Income tax (expense)/credit             5      (3.8)         3.3          6.8
Profit/(loss) for the period from                9.2      (10.3)       (40.6)
continuing operations
Loss from discontinued operations       6          -      (62.7)       (61.8)
Profit/(loss) for the period                     9.2      (73.0)      (102.4)
Attributable to                                      
- equity shareholders of Wincanton plc           9.2      (73.3)      (102.8)
- minority interests - discontinued                -         0.3          0.4
operations
Profit/(loss) for the period                     9.2      (73.0)      (102.4)
Earnings/(loss) per share - basic and                
diluted
- continuing operations                 7       8.0p      (9.0)p      (35.3)p
- discontinued operations                          -     (54.8)p      (54.0)p
- Total                                         8.0p     (63.8)p      (89.3)p



The Directors do not  recommend the payment  of a dividend  in respect of  the 
above period (2011: nil).







Consolidated statement of comprehensive income

for the six months to 30 September 2012 (unaudited)



                                                        Six      Six         

                                                     months   months      Year

                                                         to       to     ended

                                                    30 Sept  30 Sept  31 March

                                                       2012     2011      2012
                                                         £m       £m        £m
Profit/(loss) for the period                            9.2   (73.0)   (102.4)
Other comprehensive income
Actuarial losses on defined benefit pension schemes,    -       -       (50.0)
net of deferred tax
Net foreign exchange gain/(loss) on investment in       0.3      0.6     (0.8)
foreign subsidiaries net of hedged items
Translation reserve relating to disposals transferred   -      (2.8)   (4.4)
to profit or loss
Effective portion of changes in fair value of         (1.0)    (4.2)     (4.3)
cashflow hedged items
Net change in fair value of cashflow hedges             0.8      0.8       1.5
transferred to profit or loss
Income tax relating to components of other            (1.1)     -        (0.8)
comprehensive income
Other comprehensive expense for the period, net of    (1.0)    (5.6)    (58.8)
income tax
Total comprehensive income/(expense) for the period     8.2   (78.6)   (161.2)

Attributable to
- equity shareholders of Wincanton plc                  8.2   (78.9)   (161.6)
- minority interests - discontinued operations          -        0.3       0.4
Total comprehensive income/(expense) for the period     8.2   (78.6)   (161.2)
                                                                  





Consolidated balance sheet

at 30 September 2012 (unaudited)

                                                   30 Sept   30 Sept  31 March

                                                      2012      2011      2012
                                              Note      £m        £m        £m
Non-current assets
Goodwill and intangible assets                       118.8     122.9     123.2
Property, plant and equipment                   8     73.8      92.7      84.5
Investments, including those equity accounted         -         15.8         -
Deferred tax assets                                   23.5      10.7      28.8
                                                     216.1     242.1     236.5
Current assets
Assets held for sale                                  -        179.3     -
Inventories                                            6.9       7.2       6.7
Trade and other receivables                          163.9     204.7     158.9
Cash and cash equivalents                       9    146.6      29.5     165.6
                                                     317.4     420.7     331.2
Current liabilities
Income tax payable                                   (7.1)     (6.6)     (7.2)
Borrowings and other financial liabilities      9   (60.0)     (8.0)    (59.7)
Trade and other payables                           (312.0)   (352.3)   (332.0)
Employee benefits                                    (0.5)    (0.6)     (0.8)
Provisions                                          (26.1)   (23.8)    (34.8)
Liabilities held for sale                             -     (145.8)     -
                                                   (405.7)  (537.1)   (434.5)
Net current liabilities                             (88.3)  (116.4)   (103.3)
                                                           
Total assets less current liabilities                127.8    125.7     133.2
                                                           
Non-current liabilities                                    
Borrowings and other financial liabilities      9  (209.6)  (203.6)   (220.4)
Employee benefits                                  (114.7)   (68.1)   (118.2)
Provisions                                          (62.0)   (38.6)    (61.9)
Deferred tax liabilities                             (1.1)    (1.0)     (1.1)
                                                   (387.4)  (311.3)   (401.6)
Net liabilities                                    (259.6)  (185.6)   (268.4)
                                                           
Add back: pension deficit, net of deferred tax        88.3     75.7      89.8
Net liabilities before net pension deficit         (171.3)  (109.9)   (178.6)
                                                           
Equity                                                     
Issued share capital                                  12.2     12.2      12.2
Share premium                                         12.8     12.8      12.8
Merger reserve                                         3.5      3.5       3.5
Translation reserve                                    0.3      3.0         -
Hedging reserve                                      (4.5)    (4.9)     (4.3)
Retained earnings                                  (283.9)  (212.8)   (292.6)
                                                           
Equity deficit attributable to shareholders of     (259.6)  (186.2)   (268.4)
Wincanton plc
Minority interest                                     -         0.6         -
Total equity deficit                               (259.6)  (185.6)   (268.4)



Consolidated statement of changes in equity

at 30 September 2012 (unaudited)



                                                                                  

               Issued   Share  Merger Hedging Translation Retained        Minority   Total
               share                 reserve             earnings                   equity
              capital premium reserve             reserve            Total interest
                                                                                    deficit
                   £m      £m      £m      £m          £m       £m      £m       £m      £m
Balance at 1     12.2    12.8     3.5   (4.3)           -  (292.6) (268.4)        - (268.4)
April 2012
Total
comprehensive       -       -       -   (0.2)         0.3      8.1     8.2        -     8.2
expense
Increase in
IFRS 2              -       -       -       -           -      0.6     0.6        -     0.6
reserve
Balance at 30
September        12.2    12.8     3.5   (4.5)         0.3  (283.9) (259.6)        - (259.6)
2012
Balance at 1     12.2    12.8     3.5   (1.5)         5.2  (139.7) (107.5)      0.5 (107.0)
April 2011
Total
comprehensive       -       -       -   (3.4)       (2.2)   (73.3)  (78.9)      0.3  (78.6)
expense
Increase in
IFRS 2              -       -       -       -           -      0.2     0.2        -     0.2
reserve
Dividends
paid to             -       -       -       -           -        -       -    (0.2)   (0.2)
shareholders
Balance at 30
September        12.2    12.8     3.5   (4.9)         3.0  (212.8) (186.2)      0.6 (185.6)
2011
Balance at 1     12.2    12.8     3.5   (1.5)         5.2  (139.7) (107.5)      0.5 (107.0)
April 2011
Total
comprehensive       -       -       -   (2.8)       (5.2)  (153.6) (161.6)      0.4 (161.2)
income
Minority
interests
relating            -       -       -       -           -        -       -    (0.5)   (0.5)

to disposals
Increase in
IFRS 2              -       -       -       -           -      0.7     0.7        -     0.7
reserve
Dividends
paid to             -       -       -       -           -        -       -    (0.4)   (0.4)
shareholders
Balance at 31    12.2    12.8     3.5   (4.3)           -  (292.6) (268.4)        - (268.4)
March 2012



Consolidated statement of cash flows

for the six months to 30 September 2012 (unaudited)

                                                                           

                                                   Six       Six         Year

                                                months    months        ended

                                                 to 30     to 30     31 March

                                             Sept 2012 Sept 2011         2012

                                         Note        £m        £m           £m
Operating activities                                                       
Profit/(loss) before tax                           13.0   (13.6)    (47.4) 
Adjustments for                                                            
 - depreciation and amortisation                 11.6     13.3      25.3 
 - write downs of non-current assets      2     -          9.3      11.4 
 - interest expense                               7.2      8.1      15.0 
 - share of results of associate                -        (0.7)     (1.3) 
 - net result of business disposals             -         -          4.8 
 - share-based payments fair value                0.6      0.2       0.7 
charges
                                                   32.4     16.6       8.5 
(Increase)/decrease in trade and other            (5.2)      1.0      46.7 
receivables
(Increase)/decrease in inventories               (0.2)      1.3       1.9 
Decrease in trade and other payables             (18.5)   (13.9)    (33.8) 
(Decrease)/increase in provisions                 (9.6)     10.6      44.3 
Decrease in employee benefits                     (1.7)    (9.9)    (19.5) 
Income taxes received/(paid)                        0.4      1.1   (0.5)   
Cash (utilised)/generated from continuing         (2.4)      6.8      47.6 
operations
Cash utilised from discontinued operations        -       (22.2)    (17.7) 
Cash flows from operating activities              (2.4)   (15.4)      29.9 
Investing activities                                                       
Proceeds from sale of property, plant and           6.5      0.9       1.9 
equipment
Net proceeds from business disposals              -        23.1       61.3 
Interest received                                   0.3      0.2       0.2 
Dividends received from associates                -         -          0.5 
Additions of property, plant and equipment        (3.7)   (11.4)    (16.0) 
Additions of computer software costs              -       (10.9)    (14.4) 
Cash flows from investing activities                3.1      1.9      33.5 
Financing activities                                                       
(Decrease)/increase in borrowings                 (6.9)   (21.3)      36.0 
Payment of finance lease liabilities              (3.7)    (1.7)     (1.4) 
Dividends paid to minority interest in            -        (0.2)     (0.4) 
subsidiary undertakings
Interest paid                                     (9.1)   (10.7)    (19.4) 
Cash flows from financing activities             (19.7)   (33.9)      14.8 
Net (decrease)/increase in cash and cash         (19.0)   (47.4)      78.2 
equivalents
Cash and cash equivalents at beginning of         165.6     88.3      88.3 
the period
Effect of exchange rate fluctuations on           -        (0.3)     (0.9) 
cash held
Cash and cash equivalents at end of period        146.6     40.6     165.6 
Represented by                                                             
 - cash at bank and in hand                     131.5     10.4     148.7 
 - restricted cash, being deposits held          15.1     19.1      16.9 
by the Group's captive insurer
 Cash and cash equivalents as shown on          146.6     29.5     165.6 
the balance sheet
 - cash at bank and in hand - classified        -         11.1     -     
as asset held for sale
                                                  146.6     40.6     165.6 



Notes to the consolidated half year financial statements

for the six months to 30 September 2012 (unaudited)



1 Basis of preparation and Statement of compliance



Wincanton plc (the 'Company') is a company incorporated in England and Wales.
The consolidated half  year financial statements  of the Company  for the  six 
months to  30  September  2012  comprise  the  Company  and  its  subsidiaries 
(together referred  to  as  the  'Group') and,  where  relevant,  the  Group's 
interests in associates and jointly controlled entities.



These consolidated  half  year  financial statements  have  been  prepared  in 
accordance with  IAS 34,  Interim  Financial Reporting.  As required  by  the 
Disclosure and Transparency  Rules of  the Financial  Services Authority,  the 
half year  financial  statements  have  been prepared  on  the  basis  of  the 
accounting policies adopted  by the  Group and  applied and  disclosed in  its 
consolidated financial  statements  for the  year  ended 31  March  2012.  In 
addition the  amendment  to  IFRS7 Financial  Instruments  :  Disclosures  and 
Transfers of Financial Assets is  effective for accounting periods  commencing 
after 31  March  2012  and  has  been  applied,  where  applicable,  in  these 
consolidated half year financial statements.  Adoption of this amendment  has 
not had a significant effect on the consolidated results or financial position
of the Group. These policies are in accordance with IFRS as adopted by the EU
(Adopted IFRS).



These consolidated half year  financial statements do not  include all of  the 
information required for full annual financial statements, and should be  read 
in conjunction with the consolidated  financial statements for the year  ended 
31 March 2012. The comparative figures for the year ended 31 March 2012  have 
been extracted from  those accounts  but do  not comprise  the full  statutory 
accounts for that financial year. Except for the 31 March 2012  comparatives, 
the financial information set out herein is unaudited but has been reviewed by
the auditors and their report to the Company is set out on page 18.



The consolidated financial statements  for the year ended  31 March 2012  have 
been reported  on  by the  Group's  auditor;  delivered to  the  Registrar  of 
Companies; and are available upon request from the Company's registered office
at Methuen Park,  Chippenham, Wiltshire SN14  0WT or at  www.wincanton.co.uk. 
The report  of  the  auditor was  (i)  unqualified,  (ii) did  not  include  a 
reference to  any  matters to  which  the auditor  drew  attention by  way  of 
emphasis without  qualifying  their  report,  and  (iii)  did  not  contain  a 
statement under Section 498(2) or (3) of the Companies Act 2006.



The preparation of these consolidated half year financial statements  requires 
management to  make  judgements, estimates  and  assumptions that  affect  the 
application of  accounting policies  and the  reported amounts  of assets  and 
liabilities, income  and  expense.  Actual  results  may  differ  from  these 
estimates. In preparing  these consolidated half  year financial  statements, 
the  significant  judgements  made  by  management  in  applying  the  Group's 
accounting policies and  the key areas  of estimation were  the same as  those 
that applied to the  consolidated financial statements for  the year ended  31 
March 2012.



The consolidated half year financial statements have been prepared on a  going 
concern basis, which assumes the Group will be able to meet its liabilities as
they fall due  for the foreseeable  future. The Directors  have prepared  cash 
flow forecasts on the basis of which they expect that the Group will  continue 
as a going concern.



The Group  is  reporting  net  liabilities of  £259.6m  (31  March  2012:  net 
liabilities of £268.4m) due primarily to the inclusion of the pension  deficit 
and the impact of the disposal  of the Mainland Europe businesses. To  provide 
greater visibility  of  the Group's  underlying  balance sheet  position,  net 
liabilities before the net pension deficit are  also shown on the face of  the 
balance sheet. This presentation is  consistent with the financial  statements 
for the year ended 31 March 2012.



The Half  Year Report,  which includes  the consolidated  half year  financial 
statements, was approved by the Board on 9 November 2012.



Notes to the consolidated half year financial statements(continued)

for the six months to 30 September 2012 (unaudited)



2 Operating segments



Wincanton plc provides  contract logistics  services. The  Group manages  its 
operations  in  two  distinct  operating  segments;  Contract  logistics  (the 
majority of activities  include transport and  warehousing for various  market 
sectors including  retailers,  manufacturers, Defence  and  Construction)  and 
Specialist businesses (Pullman, Containers, and Wincanton Records Management).



The results of the operating segments  are regularly reviewed by the Board  to 
allocate resources  to these  segments and  to assess  their performance.  The 
Group evaluates  performance  of  the  operating  segments  on  the  basis  of 
underlying operating profit.



                      Contract logistics          Specialist      Consolidated
                                                  businesses
                  Six    Six    Year    Six    Six  Year    Six    Six    Year
               months months   ended months months ended months months   ended
                   to     to      31     to     to    31     to     to      31
                               March               March
              30 Sept     30    2012     30     30  2012     30     30   March
                 2012   Sept           Sept   Sept         Sept   Sept    2012
                        2011           2012   2011         2012   2011
                   £m     £m      £m     £m     £m    £m     £m     £m      £m
Continuing operations
Revenues from
external        465.0  534.5 1,023.8   86.2   90.9 179.0  551.2  625.4 1,202.8
customers ^1
Depreciation    (6.0)  (7.4)  (13.6)  (1.5)  (1.6) (3.4)  (7.5)  (9.0)  (17.0)
Amortisation
of software      -     (0.2)   (0.1)   -      -      -     -     (0.2)   (0.1)
intangibles
Share of
results of       -       0.7     1.3   -      -      -     -       0.7     1.3
the associate
^2


Reportable
segment          20.1   17.5    34.6    4.2    4.8   9.2   24.3   22.3    43.8
underlying
operating
profit ^3
Other
material
non-cash
items:
- write down
of other         -     (9.3)  (11.4)   -      -      -     -     (9.3)  (11.4)
non-current
assets ^4



^1 Included in segment revenue is  £537.0m (2011: £609.3m) in respect  of 
customers based in the UK.

^2 The associate reported relates to the Group's 20% investment in Culina
Logistics Limited which was disposed of during the year ended 31 March  2012. 
This had been classified as a continuing operation.

^3 Underlying  operating profit  includes  the share  of results  of  the 
associate up to  the date  of disposal and  is stated  before amortisation  of 
acquired intangibles and exceptionals.

^4 The write down of other non-current assets comprises the write down of
property plus plant and equipment to recoverable value.





Notes to the consolidated half year financial statements(continued)

for the six months to 30 September 2012 (unaudited)



3 Exceptionals



                                               Six          Six           Year

                                         months to    months to          ended

                                      30 Sept 2012 30 Sept 2011  31 March 2012

                                                £m           £m             £m
Exceptional restructuring and other costs
Closure and restructuring of operations
- UK & Ireland                                   -      (23.7)          (29.1)
Onerous property provisions                      -        -             (34.1)
Disposal of investment in Culina Logistics       -        -              (4.8)
Limited
                                                 -      (23.7)          (68.0)



                          4 Net financing costs



                                     Six months to          Six           Year

                                      30 Sept 2012    months to          ended

                                                £m 30 Sept 2011  31 March 2012

                                                             £m             £m
Interest income                              0.3         0.1           0.4 
Expected return on defined benefit pension   21.3        22.2         44.3 
scheme assets
Interest on defined benefit pension scheme  (19.2)      (19.6)      (39.2) 
obligations
                                             2.4         2.7           5.5 
Interest expense                            (8.0)       (9.5)       (18.1) 
Finance charges payable in respect of       (0.3)       (0.4)        (0.7) 
finance leases
Unwinding of discount on insurance and      (1.3)       (0.9)        (1.7) 
other provisions
                                            (9.6)       (10.8)      (20.5) 
Net financing costs                         (7.2)       (8.1)       (15.0) 



Notes to the consolidated half year financial statements(continued)

for the six months to 30 September 2012 (unaudited)

                      5 Income tax expense/(credit)

                                                 Six             Six      Year

                                           months to       months to     ended

                                             30 Sept         30 Sept  31 March

                                                2012            2011      2012

                                                  £m              £m        £m
Current tax (credit)/expense
Current year                                     0.1             0.1       0.3
Adjustments for prior years                    (0.5)   -     (0.8)
                                               (0.4)             0.1     (0.5)
Deferred tax expense/(credit)
Current year                                     3.4           (3.4)     (6.1)
Adjustments for prior years                      0.8   -     (0.2)
                                                 4.2           (3.4)     (6.3)
Total income tax expense/(credit) in the         3.8           (3.3)     (6.8)
income statement

                                      

In accordance with IAS 34 the  tax expense recognised in the income  statement 
for the half year is calculated on  the basis of the estimated effective  full 
year tax rate.



The main UK Corporation tax rate will reduce from 24% to 23% with effect  from 
1 April 2013. The  closing UK deferred tax  provision is calculated based  on 
the rate of 23% which was substantively enacted at the balance sheet date.

                        6 Discontinued operations



During the year ended 31 March 2012  the Group disposed of all its  operations 
in Mainland Europe. In accordance with IFRS5 Non-current Assets Held For Sale
and  Discontinued  Operations  the  results  of  these  operations  have  been 
classified as  discontinued  operations  in the  Group's  consolidated  income 
statement.



No profit or loss on discontinued operations has been recognised in the period
to 30 September 2012.



                       7 Earnings/(loss) per share



Earnings/(loss) per  share  are calculated  on  the basis  of  earnings/(loss) 
attributable to  the equity  shareholders  of Wincanton  plc of  £9.2m  (2011: 
£(73.3)m) and the weighted average of 115.6m (2011: 114.9m) shares which  have 
been in issue throughout the period.



Notes to the consolidated half year financial statements(continued)

for the six months to 30 September 2012 (unaudited)



               7 Earnings/(loss) per share (continued)



The weighted average  number of  ordinary shares  for both  basic and  diluted 
earnings/(loss) per share are calculated as follows:








                                                  Six months to

                                                        30 Sept
                                  Six months to                 Year ended 31
                                                           2011     March 2012
Weighted average number of          30 Sept 2012
ordinary shares                         millions       millions       millions
Issued ordinary shares at the              115.5          114.6          114.6
beginning of the period
Net effect of shares issued and              0.1            0.3            0.5
purchased during the period
                                           115.6          114.9          115.1
Weighted average number of
ordinary shares (diluted)
Weighted average number of
ordinary shares at the end of the          115.6          114.9          115.1
period



An alternative  earnings per  share number  is set  out below,  split  between 
continuing and discontinued, being before amortisation of acquired intangibles
and any impairment of goodwill and acquired intangibles, and exceptionals plus
related  tax,  since  the  Directors  consider  that  this  provides   further 
information on the underlying performance of the Group:

                                      

                                                  Six months to

                                   Six months to        30 Sept
                                                                 Year ended 31
                                    30 Sept 2012           2011     March 2012

                                          pence          pence          pence
Underlying earnings per share -
continuing operations
- basic                                     10.6            9.0           18.0
- diluted                                   10.6            9.0           18.0
Underlying earnings per share -
discontinued operations
- basic                                        -            1.7            1.6
- diluted                                      -            1.7            1.6



Notes to the consolidated half year financial statements(continued)

for the six months to 30 September 2012 (unaudited)

                                      

               7 Earnings/(loss) per share (continued)

Underlying earnings are determined as follows:

                                                  Six months to

                                   Six months to        30 Sept
                                                                 Year ended 31
                                    30 Sept 2012           2011     March 2012

                                              £m             £m             £m
Continuing operations:
Profit/(loss) for the period
attributable to equity                       9.2         (73.3)        (102.8)
shareholders of Wincanton plc
Discontinued operations excluding
amounts attributable to minority         -                 63.0           62.2
interests
Exceptional costs (note 3)               -                 23.7           68.0
Amortisation of acquired                     4.1            4.1            8.2
intangibles
Tax on the above items                     (1.1)          (7.2)         (14.9)
Underlying earnings - continuing            12.2           10.3           20.7
operations
Discontinued operations:
Discontinued operations excluding
amounts attributable to minority         -               (63.0)         (62.2)
interests
Loss on disposal of discontinued         -                 64.4      63.0
operations
Amortisation of acquired                 -                  0.9            1.4
intangibles
Tax on the above items                   -                (0.3)          (0.3)
Underlying earnings - discontinued       -                  2.0            1.9
operations



Comparative figures for underlying earnings per share - continuing operations,
included share of  result of  the associate,  being the  investment in  Culina 
Logistics Limited which was sold in March 2012. Underlying earnings excluding
Culina for the six months to 30 September 2011 were £9.6m (year to March 2012:
£19.4m) and earnings per share 8.4p (March 2012: 16.9p)



8 Property, plant and equipment



Additions and disposals



During the half year  to 30 September  2012 the Group  acquired assets with  a 
cost of £3.4m (2011: £10.7m).



Assets with a carrying amount of £6.3m  were disposed of during the half  year 
to 30 September 2012 (2011: £0.5m).



Capital commitments



At 30  September  2012  the  Group had  entered  into  contracts  to  purchase 
property, plant and equipment for £4.1m (2011: £3.4m); delivery is expected in
the second half of the year to 31 March 2013.





Notes to the consolidated half year financial statements(continued)

for the six months to 30 September 2012 (unaudited)



                       9 Analysis of net debt

                                                    30 Sept  30 Sept  31 March

                                                       2012     2011      2012

                                                         £m       £m        £m
Cash and cash equivalents
Cash at bank and in hand                              131.5     10.4     148.7
Restricted cash, being deposits held by the Group's    15.1     19.1      16.9
captive insurer
                                                      146.6     29.5     165.6
Cash at bank and in hand - classified as assets        -        11.1         -
held for sale
                                                      146.6     40.6     165.6
Borrowings
Current
US$ private placement                                (55.9)        -    (55.4)
Bank loans and overdrafts                             (0.2)    (0.5)     (0.4)
Finance lease liabilities                             (1.9)    (6.0)     (2.4)
Other financial liabilities                           (2.0)    (1.5)     (1.5)
                                                     (60.0)    (8.0)    (59.7)
Bank loans and overdrafts - classified as              -       (2.5)     -
liabilities held for sale
                                                     (60.0)   (10.5)    (59.7)
Non-current
US$ private placement                                (56.5)  (120.7)    (57.1)
Bank loans                                          (150.0)   (78.5)   (156.7)
Finance lease liabilities                             (0.4)    (0.8)     (3.6)
Other financial liabilities                           (2.7)    (3.6)     (3.0)
                                                    (209.6)  (203.6)   (220.4)
Bank loans and overdrafts - classified as              -       (4.1)     -
liabilities held for sale
                                                    (209.6)  (207.7)   (220.4)
Net debt - as shown on the balance sheet            (123.0)  (182.1)   (114.5)
Net debt - classified as assets and liabilities        -         4.5     -
held for sale
Total net debt                                      (123.0)  (177.6)   (114.5)

                                      





Independent review report to Wincanton plc



Introduction



We have  been engaged  by the  Company to  review the  consolidated half  year 
financial statements  in  the  Half Year  Report  for  the six  months  to  30 
September  2012  which  comprises  the  consolidated  income  statement,   the 
consolidated statement  of  comprehensive  income,  the  consolidated  balance 
sheet, the  consolidated  statement of  changes  in equity,  the  consolidated 
statement of cash flows and the  related explanatory notes. We have read  the 
other information contained in the Half Year Report and considered whether  it 
contains any  apparent  misstatements  or material  inconsistencies  with  the 
information in the consolidated half year financial statements.



This report is made solely to the Company in accordance with the terms of  our 
engagement to assist the Company in meeting the requirements of the Disclosure
and Transparency Rules ("the  DTR") of the  UK's Financial Services  Authority 
("the UK FSA"). Our review has been undertaken so that we might state to  the 
Company those matters we are required to state to it in this report and for no
other purpose. To the  fullest extent permitted  by law, we  do not accept  or 
assume responsibility to anyone  other than the Company  for our review  work, 
for this report, or for the conclusions we have reached.



Directors' responsibilities



The Half Year Report is the responsibility  of, and has been approved by,  the 
Directors. The Directors are responsible for preparing the Half Year Report in
accordance with the DTR of the UK FSA.



As disclosed  in note  1, the  annual financial  statements of  the Group  are 
prepared in accordance with IFRSs as adopted by the EU. The consolidated  half 
year financial statements included in this Half Year Report have been prepared
in accordance with IAS 34, Interim Financial Reporting as adopted by the EU.



Our responsibility



Our  responsibility  is  to  express  to  the  Company  a  conclusion  on  the 
consolidated half year financial statements in  the Half Year Report based  on 
our review.



Scope of review



We conducted our review  in accordance with  International Standard on  Review 
Engagements (UK and  Ireland) 2410,  Review of  Interim Financial  Information 
Performed by the  Independent Auditor  of the  Entity issued  by the  Auditing 
Practices Board for use in the  UK. A review of interim financial  information 
consists of making enquiries, primarily  of persons responsible for  financial 
and accounting matters, and applying analytical and other review procedures. A
review is substantially less  in scope than an  audit conducted in  accordance 
with International Standards  on Auditing  (UK and  Ireland) and  consequently 
does not enable  us to  obtain assurance  that we  would become  aware of  all 
significant matters that might be identified  in an audit. Accordingly, we  do 
not express an audit opinion.



Conclusion



Based on our  review, nothing  has come  to our  attention that  causes us  to 
believe that the consolidated half year financial statements in the Half  Year 
Report for  the six  months to  30 September  2012 are  not prepared,  in  all 
material respects, in accordance with IAS 34 as adopted by the EU and the  DTR 
of the UK FSA.



AC Campbell-Orde

for and on behalf of KPMG Audit Plc
Chartered Accountants

100 Temple Street

Bristol

BS1 6AG

9 November 2012





Shareholder information



Preliminary announcement of full year results     June 2013
Annual General Meeting                            July 2013
Announcement of half year results             November 2013



Shareholders' enquiries



All administrative enquiries relating to shareholdings should, in the first
instance, be directed to the Registrar at the following address:



Computershare Investor Services PLC

The Pavilions

Bridgwater Road

Bristol

BS99 6ZY

Telephone: 0870 707 1788 Fax: 0870 703 6101

Text phone: 0870 702 0005

Web queries: www.investorcentre.co.uk/contactus























                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


IR BLBFTMBJMBLT -0- Nov/12/2012 07:00 GMT