Wincanton raises operating profit after P&O Trans European takeover
Wincanton PLC, a British logistics service provider, reported a 31-percent increase in adjusted operating profit, to '20 million ($33 million), for the six-month period ended Sept. 30, the first result that takes into account the takeover of P&O Trans European completed in January.
The increase in adjusted operating profit reflects the change in scale and scope of the group, Wincanton said.
However, the company’s pre-tax profit declined by 25 percent, to '12 million ($20 million), largely because of higher interest charges due to loans taken to finance the takeover.
Pre-tax profit and earnings comparisons were affected by a higher interest charge, exceptional restructuring charges and a minority interest deduction, Wincanton said.
Revenue more than doubled in the latest six-month period, to '845 million ($1.4 billion).
Wincanton, which took over the contract logistics business of Peninsular and Oriental Steam Navigation Co. for '152.5 million ($244 million), said that the integration of the acquisition continues on track, with cost savings of '4 million ($7 million) a year already identified.
It said that it has taken steps to “address under-performing activities within German road and logistics business.”
The British company forecast that its earnings in the current financial year ending in March would be “weighed towards the second half.”