Wincanton is restructuring its German groupage network and joining a new groupage co-operation scheme.
The restructuring, will lead to an exceptional charge of up to £13m, involves the closure of three loss-making groupage depots. It is also withdrawing from the currently loss-making groupage activities at a further four locations to enable these sites to increase their focus on profitable warehousing and transport management operations.
The remaining sites, which are profitable, will continue with the existing mix of warehousing and transport management but will in future contribute their groupage volumes into a new partnership with ILN, an existing pan-European network operator.
Chief executive Graeme McFaull said: “The restructuring announced today, which we expect to deliver an attractive profit and cash flow payback, will enable us to focus more clearly on the significant growth opportunities for Wincanton in the German market and contribute positively to our overall progress in mainland Europe.”
The group expects the restructuring to be fully implemented by the end of the third quarter of its current financial year, is expected to deliver a profitable, less volatile business base for the group in Germany.