Wincanton has warned that market conditions have been challenging in the retail and FMCG sectors, but says the group has continued to trade in line with expectations for the year to 31 March 2012.
“The Group has been successful in retaining and winning a number of contracts across all its market sectors.
“However, market conditions have been challenging in the Retail and FMCG sectors and the containers business, and we expect these to remain for the year ahead. A number of the group’s customers are seeing a decline in volumes, which is resulting in a reduced demand for warehouse space and excess property in the group.
“The group has continued to perform well in the businesses such as Pullman Fleet Services and Records Management and in our Construction and Defence sectors.
In the medium term, it said it saw significant opportunities in enhancing its existing service offering, and had committed resource to develop more flexible and advanced products.
Chief executive Eric Born said: “The year ended 31 March 2012 has been a year of transition for Wincanton, set against an economic environment that is very difficult. The disposal of the Mainland European businesses has enabled the group to focus on the core UK and Ireland businesses, reduce overall debt levels and refinance its existing bank facilities. Our focus remains on stabilising and maximising opportunities in the core business while developing product solutions that will provide profitable growth in the future and enable us to further reduce our average net debt.”