Wincanton Share Discussion Threads

[s34icknote] 09/9/2020 07:09

Good update .Should be blue on another red market day

[matt] 09/9/2020 07:03

Statement today is encouraging,

"Given the combination of Wincanton's improved trading performance, cost intervention measures and the recovering economy, the Board expects results for the current year to be materially ahead of market expectations. This continues to assume no further COVID-19 impact that severely affects the business."

[volvo] 08/9/2020 20:10

Unless Wincanton are raising capital to fund its growth this a excellent buying op because the company is flat out growing.

[netcurtains] 08/9/2020 18:33

Royal Mail up 25%

[s34icknote] 08/9/2020 16:27

Markets are not rational net !!!That's all there is to it !!

[netcurtains] 08/9/2020 16:11

Just gone back and checked results June 2020 - look good to me:


FY19/20 operational and financial highlights

· Strong year on year revenue growth of 5.2% to £1,201.2m (2019: £1,141.5m) - notable growth in Retail Grocery (+26.0%) and Retail General Merchandise (+5.8%)

· Growth driven by new business in the year, including transportation and vehicle maintenance services contract with Morrisons and contracts with Wickes, Dwell and Sofa Club in our market-leading Home and eFulfilment business

· All major contract renewals successful in year, including Sainsbury's, Waitrose & Partners, Williams Sonoma Inc., Ibstock, Müller Milk, Lucozade Ribena Suntory and adidas

· Underlying profit before tax growth of 7.3% to £52.9m and EPS growth of 6.9% to 35.8p, both driven by revenue growth, strong operational performance and reduced levels of debt

· Robust balance sheet with continued strong cash generation leading to a reduction in net debt to £10.1m (2019: £19.3m)

· Chief Executive's review completed - refocused strategic direction and organisational structure aligned to growth focus: "Great people delivering sustainable supply chain value"

[volvo] 08/9/2020 15:43

The rigged markets are taking out the 'clever' trader's with their stop loss's.

Suspect many set a trailing loss at 180p. Never use them for this reason.

Same in the states of course.

[matt] 08/9/2020 15:32

My hope is some form of reverse head and shoulders.

[netcurtains] 08/9/2020 14:29

So VOLVO that all sounds good - meanwhile the share price has gone below my "ALAM BELL" sell level. Not sure what to do. I like the story but I do not like the fall in price. Its good for new buyers.
I would not mind it being this price if it attracted buyers....I'll give it a couple of weeks longer.

[volvo] 08/9/2020 11:02

Mid June 2020 re Brexit.

Company seems relaxed.


Brexit

Although there remains uncertainty on the nature and timing of the UK's proposed withdrawal from the European Union (Brexit), our understanding of potential risks and impacts are regularly reviewed and assessed.

We have, for example, reviewed the potential impact of Brexit, including adverse economic consequences, on our existing contract base, workforce, bidding activities and supply chain.

We continue to believe that Wincanton will not be materially affected by the UK withdrawing from the European Union, which is currently scheduled to occur at the end of December 2020. This is based on the following key points:

-- Our operations are generally delivered locally in-country and are not critically dependent on a cross-border supply chain or workforce. Wincanton's operations in Ireland are not a significant part of the Group and represent c.1% of Group revenue.

-- As a British focused 3PL business there is potential for additional demand for our services under most Brexit scenarios, including demand for warehouse space and management, management of bonded goods and supply of container storage and transportation.

-- Most of our existing contracts have provisions which allow for inflationary and other adjustments (e.g. fuel price movements, tariffs on imported vehicles) to be charged to our customers and approximately 60% of our contracts are open book contracts in which we do not bear the direct impact of increasing costs.

-- Should the UK's exit from the EU at the end of 2020 result in a 'hard' Brexit without a transition period and/or an orderly withdrawal may cause regulatory and compliance uncertainty on some contracts that require performance under EU regulation, bodies and/or standards; however, we believe such uncertainties will be addressed under proposed new UK regulations following any withdrawal.

-- We have reviewed our supply chain and are broadly comfortable with our key suppliers' ability to maintain the provision of goods and services on key contracts.

[volvo] 08/9/2020 10:56

Today

Clipper Logistics market cap £430m

Wincanton market cap £238m

[lefrene] 08/9/2020 09:18

Very likely WIN will see a much higher demand for transport in the UK if the situation turns nasty and the EU block our trucks, then we would block theirs, and over 80% of the ferry traffic is EU carriers. All the internal cabotage work would also be denied to these EU carriers, thus it's possible trucking could have a boom period.

A pragmatic solution would be to allow EU trucks off the Dover ferry and up to Ramsgate idle airfield where they could swap trailers and then back down to the ferry.

The chunnel traffic could do the same thing. ie swap trailers at the rail head. (all trailers to be custom checked and sealed before leaving their point of origin, so that they can be treated in the same way as containers, which come in from all around the world and move swiftly out of our ports)

[netcurtains] 08/9/2020 08:51

Do you have a list of TICKERS of road hauler companies that will be negatively affected by Brexit uncertainty (eg ones that operate all round EU)?
Is WINs on that list or are we more or less immune to brexit uncertainty?

[lefrene] 08/9/2020 08:51

Wincanton also do not have to carry other peoples stuff for the 'last mile' at a loss. Mind you Royal mail are highly wasteful running vast amounts of empty mileage, and little attention to detail at the truck operating level. Wincanton is a commercial operator, Royal Mail is something else.

[edmundshaw] 08/9/2020 08:42

Royal Mail today:
"We continue to expect Royal Mail to make a material loss this financial year 2020-21 and will not become profitable without substantial business change."

They have some real problems... but there is no read-across to concern us I think, because the number of parcels sent through Royal Mail jumped by more than a third during the first five months of lockdown, while revenue rose by 33pc. Meantime the number of letters fell by 28pc, with letter revenue down 22%... and Wincanton of course do not deliver letters or have a problematic Trades Union millstone.

[lefrene] 07/9/2020 16:46

If you have ever considered driving a lorry, this is the sort of thing the EU does to 'improve' things,

[volvo] 07/9/2020 11:00

The company was obviously effected during the lockdown.

The share price was smashed down to 160p from 300p. A little bounce on a selection of excellent new contract wins to 189p as I write.

This is baffling, but I am assured that the company is emerging in positive fashion from the lockdown and looking forward it has a strong outlook....the market just need to hear this from the directors mouths.

[lefrene] 07/9/2020 10:53

edmundshaw, quite right Wincantons are commercial, focused and real world transport, whilst the Royal Mail are still a civil service type operation, where 'gaming' and office politics is more important, than commercial considerations.

[edmundshaw] 07/9/2020 10:38

Sales at Primark bounced back in the fourth quarter and beat expectations, as shoppers flocked back to its stores post-lockdown to buy larger baskets of clothes.

[volvo] 07/9/2020 10:25

net, they are certainly not linking Clipper Logistics to them...they are at an all time high, and we do much of what they do...they are doing half our turnover, half our profit, but are worth double.

We do cover some different markets as well, but by all accounts all our end users are coming back...home and diy, general merchandise, grocery, construction, defence, energy, consumer goods, food and drink, water and finally milk.

Check www.wincanton.co.uk and see how many jobs they are looking to fill....they are v busy.

[netcurtains] 07/9/2020 10:16

edmundshaw: You misunderstand my post. I am not linking them. I am saying THE MARKET is potentially linking them and we need to explain why we are so different to them and should not be lumped in the same boat.

[edmundshaw] 07/9/2020 10:14

How can you compare Wincanton to the Royal Mail?? As for the Stobart Group, that has had problems for years. DBay Advisors bailed them out in December with a £55 million loan bearing interest at (gulp) 18%; hardly comparable...

[netcurtains] 07/9/2020 10:00

VOLVO: Stobbard and Royal Mail have been sold down loads recently. Are institutional investors linking us to those two companies? If so can you explain how we are different to them? Why should we be doing so much better than Eddie Stobbard (or Royal Mail)?

[volvo] 07/9/2020 09:58

All the talk that the economy (apart from oversea tourism/entertainment sectors, although both recovering)...is on its way back with printed money pushing the revolution.

One question, who will be delivering all the goods? Maybe it might be the UK's largest 3rd party logistics company?

...just saying

[netcurtains] 04/9/2020 14:23

So TRADING UPDATE Friday 2nd OCTOBER

Looks like the start of the dip down before the run and rise on Trading update.... Touchwood...