Wincanton plc has reported a 2.9% rise in first-half underlying operating profit as strong FMCG and construction volumes compensated for a fall in tanker and bulk volumes.
Wincanton's profit rose from £24.2m a year earlier to £24.9m in the six months to September 30th, while revenue was up 1.6% to £550.9m.
The group said it had won some good new business - including a three year agreement for transport logistics with Howdens and a three-year agreement with Halo Foods - as well as renewing contracts with long-standing customers such as General Dynamics, Waitrose wines and spirits, Adidas, Total, and Britvic.
Wincanton plc is a British provider of logistics with its origins in milk haulage. The company provides transport and logistics services including specialist automated high bay, high capacity warehouses, and supply chain management for businesses.
Joshua Raymond, chief market strategist from Cityindex.co.uk, commented: "We saw investors bank profits on their Wincanton shares this morning despite the logistics firm reporting a 2.9% rise in first half underlying profit to £24.9m as sentiment weighed on a drop in tanker and bulk volume.
"That fall contributed to a 5.7% drop in revenues relating to tanks and bulk, which was fortunately countered by growth in other areas such as retail grocery. Revenues rose 1.6% to £550.9m whilst underlying earnings per share (EPS) rose 26.2% to 10.6p.
"The firm said they remain on track to meet its expectations for the full financial year. It's important to put today’s share price falls into context of the broader strength in Wincanton shares over recent years. In the past 18 months, shares have rallied 240% and, as such, today’s profit taking is nothing to be overly concerned about."