Expanding Wincanton sees profit fall
Wincanton plc, the British logistics service provider that acquired P&O Trans European in 2002, saw its net profit decline 45 percent in its financial year ended March 31, to '11 million ($20 million), from '20 million in the previous year.
Following the takeover, revenue soared 68 percent in the year to March 31, to '1.7 billion ($3.1 billion), from '998 million in the previous financial year. Operating income before interest rose 9 percent, to '35 million ($64 million), but heavier financial charges pushed the company’s net income down.
Wincanton said that, excluding exceptional losses, the amortization of goodwill and a pension credit, operating income after interest increased to 31 million ($56 million), from '28 million in the previous year. Exceptional items accounted for '10 million ($18 million) of costs.
The British company is one year into a three-year program to integrate the operations of P&O Trans European fully, bought for '158 million (about $289 million).
“Significant progress has been made turning around a number of under-performing operations and a full-year profit has been reported I Germany,” said Paul Bateman, chief executive officer of Wincanton.
Now one of the largest logistics groups in Europe, Wincanton trades in the United Kingdom, Ireland and continental Europe.
Wincanton reported that the estimated value of Europe’s logistics market was 169 billion euros ($204 billion) in 2001, before the recent expansion of the European Union. “On average, some 30 percent of the market is believed to be outsourced,” the company said. Growth in the market for outsourced logistics services is predicted to be about 7 percent a year, it added.