February 5, 2015 / 9:19 AM / in 3 years

BUZZ-Wincanton: shares retreat as investors lock in profits

** Logistics co Wincanton drops as much as 8.4 pct & on course for its biggest 1-day pct drop in almost 3 yrs as investors take money off the table following a 9-month rally

** Shares in the company, which hauls goods for Marks and Spencer and WM Morrison, are the 3rd worst performers on the FTSE small-caps

** Company says it continues to trade in line with expectations, drop in fuel prices have not added much to bottom line

** Two brokers cut ratings on the stock to “add” from “buy” following the stock’s 66 pct run higher from the May 2014 lows

** Wincanton says fuel price changes are having no impact on its profitability as under its contracts it typically passes any price risk through to end customers.

** While company says it passes on changes in fuel costs - which account for about 40 pct of overhead of road haulage companies according to trade body RHA - to customers the halving of oil prices was expected by some to have helped margins (RM: esha.vaish.thomsonreuters.com@reuters.net)

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below