Wincanton soars after solid update

Shares of logistics company Wincanton soared 18 per cent as it reassured investors that it continues to trade in line with market expectations, following a robust performance from its contract logistics business.Wincanton said its contract logistics business secured new wins and renewals across several sectors, despite the challenging backdrop in UK markets."During the final quarter, we have successfully opened the first convenience store distribution centre for Morrisons, utilising our systems solution, and a second similar operation for Sainsbury's, both serving the London market," it explained. "The group's ability to deliver these fast, efficient operational start ups, incorporating our technology platforms and solutions, provides the group with competitive propositions to win new business, especially in the retail market place," Wincanton added.Wincanton said its defence business delivered a good performance across the year with potential to expand relationships with existing blue chip customers. It also announced that it has secured new Retail and FMCG customers across its shared user warehouse facilities.Its container business continues to be hurt by persistently lower volumes in the UK container market place. However, records management and Pullman Fleet Services produced good performances, as it signed up new customers in the healthcare sector and retained existing home delivery customers. Shares of Wincanton have fallen 17% in the last 12 months. CJ