Wincanton profit before tax fell 45.5 percent in the fiscal year ending March 31, 2009.
Europe’s second largest supply chain service provider took rapid action to cut costs as the global economic downturn took a toll on its existing and newly acquired businesses. Before exceptional items, including restructuring costs, sale of property and the write-down of acquired intangibles, underlying profit before tax looked creditable at $66.9 million, down 1.2 percent, as the chairman said. However, after the charges, profit before tax came to just $32.4 million.
“Against the background of a significant second half deterioration in the economies in which we operate, Wincanton has reacted quickly to reduce costs and adjust its operational and functional overhead base to reflect market conditions. The pre-tax underlying profit of £41.3m, a performance broadly comparable to last year’s £41.8m, represents a creditable result in highly challenging markets,” said Chairman David Edmonds.
Unusual items charged against profit before tax included exceptional restructuring and other costs of $37.4 million, exceptional property profits of $8.4 million, partial settlement of the PGN Logistics arbitration case $9.1 million and amortization of acquired intangibles of $14.6 million. Operating profit, including these items, amounted to $61.9 million, down 19.2 percent. Profit before tax, including these items, amounted to $32.4 million, down 45.5 percent.
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