Wincanton on the road to recovery: 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”.
5 Feb '15
RE: the farmer
"The Board is pleased to report that Wincanton continues to trade in line with expectations." Share price currently down about 6%, clearly the market had priced in better results.
3 Feb '15
what can we expect from the trading Statement on friday?
2 Feb '15
Announced today, to handle logistis for 'Seacat' (specialist manufacturer of military and civilian vehicles)
29 Jan '15
loss of contract
not everything is good News.They have lost the m&s contract (Swindon) to DHL.Can anyone comment on this loss?
27 Jan '15
What to expect
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.
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