Small-cap haulier Wincanton has been enjoying a steady turnaround that has seen the shares gain almost 18% during the past six months. That said, the company remains on target to hit market expectations for full year pretax profits of £27.7 million, giving earnings per share of 17.9p, on revenue of £1.1 billion. The haulage and logistics group is well diversified, with 12% of sales coming from construction, 13% from petrol tankers, 15% fast-moving consumer goods, 25% groceries, 25% general merchandise. The balance comes from other haulage. Wincanton’s shares are up 21% since we recommended buying last year (Buy, 138.75p, July 19), and trading on 10 times forecast earnings, they remain good value. Both companies are logistics operations with revenue of about £1 billion, and both manage large fleets of vehicles to transport goods from A to B. Applying Ocado’s valuation multiple to Wincanton’s forecast earnings would increase the company’s vlaue from about £200 million to £2 billion. Questor thinks one of these valuations is closer to reality and would rather buy the cheaper option at Wincanton, and hold the shares for the long term and wait for the steady profit recovery. Wincanton at 172p-6.9p. Questor Says “Buy”.
Well the past few weeks speak for themselves almost 15p up since our last posts and ticking up nicely. I expect after the BAE news there will be more on the pipeline and each win / renewal will bring it's dividends in the SP. Heading north day in day out. Week in week out. My prediction is £2.50 by summer.
of course the financial benefits of this cooperation are all for stob but there is also a reputational benefit which will enable WIN to win new and profitable business.The fact that tey bought new tractors and trailors gives rise to optimism,too,imo.Thanks for this information.
Never thought i'd see the day when a Stobart tractor came in solo and left our yard pulling a Wincanton trailer and load, but guess what .... it happened twice tonight. Seems anything goes when it comes to getting our loads delivered
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