Pre-Close Trading Update

Wincanton PLC 26 March 2007 For Immediate Release 26 March 2007 Wincanton plc ('Wincanton' or 'the Group') Pre-Close Trading Update Wincanton today issues the following pre-close season trading update for the twelve months ending 31st March 2007: 'As indicated at the half year, Wincanton will deliver another year of good progress in the year to 31st March 2007. Results will be in line with expectations, building further on the Group's track record of consistent profitable growth. The strong momentum in our UK & Ireland business has continued into the second half, with contract wins, renewals and start-ups across all areas of our activities. Recent contract gains include a new distribution centre for Asda-WalMart, a significant expansion of our Comet transport activities, a second automated warehousing facility for Screwfix, a co-packing and co-manufacturing operation for Nestle Purina, a new composite distribution centre for J. Sainsbury and a new non-food operation for Dunnes Stores in Ireland. New customers added in the period include OOCL and Jacuzzi. Our recent acquisitions in the construction and home delivery sectors are progressing well with both now substantially integrated into the Group and performing in line with our projections. A contract gain with Cemex UK confirmed the potential for further expansion of our customer base in the construction industry. Good progress in improving the operational efficiency of our home delivery business will also allow us to expand our customer base in this fast-growing sector, with a new contract with Woolworths having already been added. Our growing portfolio of support services activities continues to make progress, with a new contract win by Wincanton Records Management generating significant incremental volume for our recently-expanded London site and good business gains also recorded in Pullman Fleet Services, consulting and waste recycling. We will also, going forward, have ground to make up in the UK and Ireland for contract losses, but our development pipeline remains very encouraging. In Mainland Europe, we have closed down our loss-making Spanish operations and the related freehold properties are being sold. Margin pressure as a consequence of higher sub-contractor prices has been addressed through price increases, although underlying transport markets remain challenging. Our new management teams in France and Germany continue to make progress in reinforcing the operational excellence of our service offering and building momentum in the development pipeline. We continue to see high levels of new business activity in Central and Eastern Europe although contract start-up costs have restricted profit improvement in the region. Recent new wins in Mainland Europe include contract gains with Johnson-Diversey, Cussons, Rieber Foods and Selena in Central and Eastern Europe, Velux in France, and a number of leading manufacturers in Germany. Exceptional costs in the year will relate principally to the Spanish closure, the integration of our UK acquisitions and the final phase of the integration of last year's French acquisition. We expect these exceptional costs to be offset by the proceeds of our ongoing programme of property disposals. We are also announcing separately today a new joint venture with Kerry Logistics, a leading Asian-based provider of supply chain services, to extend the range of our customer services to cover Asian and inbound supply chain management.' Graeme McFaull, Wincanton's Chief Executive commented: 'The UK continues to be the key driver of our profit growth and cash generation. New business momentum remains very strong. We remain confident that the significant investment in people, systems and marketing across Mainland Europe will deliver a strong platform for future growth'. For further enquiries please contact: Wincanton plc Tel: 01249 710 000 Graeme McFaull, Chief Executive Gerard Connell, Group Finance Director Buchanan Communications Tel: 020 7466 5000 Charles Ryland / Jeremy Garcia This information is provided by RNS The company news service from the London Stock Exchange

Companies

Wincanton (WIN)
UK 100

Latest directors dealings