Wincanton warns of tough year ahead

Shares in logistics firm Wincanton tumbled on Tuesday morning after it warned the upcoming year would be difficult.

"For the year ending 31 March 2013, certain of the group's businesses will be adversely impacted as a result of the loss of volume, together with some excess space and the decision to invest in future growth opportunities," the firm said.

The firm did say it had continued to trade in line with expectations in the year to the end of March and had been successful in retaining and winning a number of contracts across all its market sectors.

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"However, market conditions have been challenging in the retail and fast moving consumer goods sectors and the containers business, and we expect these to remain for the year ahead," the company added.

Last year Wincanton disposed of its mainland European businesses so it could focus on its core UK and

Ireland businesses, reduce overall debt levels and refinance its existing bank facilities.

"Our focus remains on stabilising and maximising opportunities in the core business whilst developing product solutions that will provide profitable growth in the future and enable us to further reduce our average net debt," said Chief Executive Eric Born.