Wincanton Share Discussion Threads

[edmundshaw] 26/11/2019 12:22

Hopefully better A.I. will improve distribution efficiency. Getting there early could give an operator a small short-term edge, But there is a lot more to being successful than that: driver/worker morale, customer relations (reliability = enough spare capacity), sensible contracts...
...and NOT buying dodgy businesses to get turnover growth! :))

[lefrene] 26/11/2019 10:44

It's a dreadful industry all about the lowest price with expected total reliability, I doubt there is much loyalty to a 'brand'. I feel WIN are doing the right thing by leaving Stobarts alone, there's almost bound to be pickings to be had by picking up contracts that Stobarts fall down on. It's simply not worth the risk of trying to 'go large' by paying a large sum to pick up a quite likely poisoned chalice.

[lefrene] 25/11/2019 17:07

it's probably the opaque accounts edmundshaw, a buyer would be taking a high risk that they are a blackhole, and it's why that loan from dbay is at an eye watering 18 or 25%?

Best to observe from the ringside and seek to pick up contracts where Stobarts fall down on the job. Units and trailers are easy to come by, it's the well placed operating sites that are harder to acquire.

The RNS says it all, Stobart has been slow in supplying them with the necessary information to conduct full due diligence, too many unknowns, not a risk worth taking in the best interests of Wincanton shareholders.

[edmundshaw] 25/11/2019 16:49

So we are to have no offer for Eddie Stobart.

To be honest, I am relieved, E.S. looks in quite a lot of trouble, and recovering that business could have taken a lot of time and board attention, quite apart from whether it could have achieved any value. Staff morale and customer loyalty would also have been serious potential issues...

[edmundshaw] 16/11/2019 15:31

I wonder if they might be better off letting Eddie Stobart collapse and picking up some of the pieces (and contracts) from administration afterwards if DBAY cannot rescue them.

Keeping options open is OK, but a bit nerve-racking for Wincanton investors...

[petewy] 13/11/2019 09:30

Looking Healthy Divi up:
Increase in revenue of 1.9% from H1 18/19 to £592.9m (2018: £581.8m), and up 5.9% from H2 18/19. Strong growth in Retail & Consumer due to new contracts with The Co-op, Morrisons and Weetabix, partly offset by lower Industrial & Transport revenue following exits from underperforming contracts in 18/19.
Underlying operating profit growth of 5.6% and margin increase of 20bps to 4.8% (2018: 4.6%) driven by new business, strong operational performance and exit from lower margin contracts.
Underlying profit before tax increased by 9.1% to £26.3m (2018: £24.1m) generating underlying EPS growth of 9.9% to 17.8p (2018: 16.2p)
Continued strong cash generation leading to a reduction in net debt to £14.8m (2018: £24.2m)
Defined benefit pension scheme has moved into surplus of £8.1m (2018: deficit of £28.9m)
Interim dividend per share of 3.90p (2018: 3.60p), representing an increase of 8.3%
The Group continues to perform due diligence on the merits of a potential combination with Eddie Stobart Logistics plc ("Eddie Stobart"), however there can be no certainty any offer will be made

[petewy] 08/11/2019 14:50

Results Wednesday Stobart tomorrow

[kinwah] 18/10/2019 22:43

I've been thinking more about Wincanton's interest in Eddie Stobart. If WIN do make an offer they would be well-placed to extract synergies from cutting head office costs, rationalising depots and gaining access to a larger pool of drivers. They would be taking on a load of debt but by shrinking the ES business as contracts terminate and not replacing ES trucks they could help repay the debt very quickly. Normally the CMA would be horrified at this type of deal but I would imagine WIN would be ok with making any disposals which were necessary to gain competition clearance. WIN's aim after all would be to end up with more higher margin business and access to drivers in post-Brexit Britain rather than increase market share for the sake of it. Let's see what the WIN board find when they look under the Eddie Stobart bonnet!

[kinwah] 18/10/2019 08:06

Having a look at buying Eddie Stobart. Bit of a surprise as WIN have never done anything adventurous since I've held the shares. Maybe nothing more than having a nosey but probably good news for the WIN shareprice as they won't overpay.

[petewy] 25/9/2019 14:02

Thanks Steph

[stephencoster] 25/9/2019 09:28

New 5 year contract with Michelin in past week, as well as 3 year extension with Mueller. Steady momentum.

[stephencoster] 06/8/2019 14:18

Buying opportunity here .... increased holding today.Couple of pieces of news in past week:1. Cormar Carpets has renewed contract with Wincanton for a further 5 years. This shows an increasingly strong position in DIY / home market with recent wins from Homebase, Jollyes, Roper & Rhodes.2. Launched a new website called one vast warehouse to help suppliers find storage space in lead up to Brexit. This provides 2 benefits - usage of space and cross selling of logistics / transport.

[edmundshaw] 30/7/2019 22:36

Well apart from the trite "selling", I guess macro (Brexit) concerns are the most likely...

[petewy] 30/7/2019 16:35

Does this share ever settle. Today's drop...any reason?

[baddeal] 21/5/2019 08:32

Have been a holder for just over a year. Still look undervalued relative to the sector imo so room to go. Logistics underpins many other sectors so good long term, albeit low, growth prospects.

[edmundshaw] 16/5/2019 12:39

Yep. Bought these in February, and they have done all right with good new contracts and renewals. Dividend is pretty good now and well covered.

[petewy] 16/5/2019 08:25

results look good

[petewy] 09/5/2019 20:11

Wincanton (LON:WIN)‘s stock had its “buy” rating reiterated by Liberum Capital

[shiv1986] 07/5/2019 08:59

ADVFN is hosting an investor event for a firm within Industrial Transportation; Avation plc, on the 21st May to find out about their future prospects.

Sign up to attend this event:

[stephencoster] 20/4/2019 14:00

I see that a week ago Wincanton won a contract for Homebase .... approx 300,000 deliveries per year.As with the Aggregates contract I mentioned, expect an official announcement in next few days. Trading update expected early May.

[edmundshaw] 02/4/2019 08:51

Seems a good update. So is the price drop due to parliamentary shenanigans or is there some other reasoning based on this update that I have not understood??

[stephencoster] 05/3/2019 10:23

The Aggregates contract finally announced. Three weeks late but better late than never.40,000 loads a year very significant.