Recession-hit Wincanton upbeat over UK recovery

Britain's economic recovery is gaining momentum, according to haulier Wincanton, which reported growing demand for its logistics services today.

The firm won new contracts with Marks & Spencer, electrical group Best Buy, Asda and GlaxoSmithKline in the year to the end of March, but still felt the impact of the recession with underlying pre-tax profit down 16% to £34.7 million.

Wincanton, which transports goods such as food, documents and materials for recycling around the UK and Europe, also reported revenues 7.6% lower at £2.18 billion for the year to the end of March.

It was expected to post an average pre-tax profit of £35.7 million for the year, down from £41.3 million last year.

"We remain cautious about the economic outlook but are nonetheless targeting an improvement in underlying performance next year and a return to growth," said chief executive Graeme McFaull.

"Through next year and into the medium term, we expect Wincanton's portfolio of activities in the UK & Ireland to benefit strongly from economic recovery."

The company held the final dividend at 10.08p and said a restructuring of its German unit would enable its business in mainland Europe to grow in the coming year.