Good morning, it's Paul here with the SCVR for Wednesday.

Today's report is now finished.


Wincanton (LON:WIN)

Share price: 187p (up 9% today, at 11:42)
No. shares: 124.5m
Market cap: £232.8m

AGM Trading Update

Wincanton plc ("Wincanton" or the "Group"), the largest British third-party logistics company...

This update today sounds excellent. Key points;

Underlying profit before tax for FY 03/2021 significantly ahead of current market forecasts, and not less than £30m. That's assuming no resurgence in covid. Various contract wins (Waitrose & Morrisons) & renewals are mentioned.

Improved demand across most of the business.

Liquidity/debt -

Cash collection and liquidity management remain strong and current net debt remains significantly below the prior year position, primarily due to the deferral of payments.

As I keep saying, companies must disclose how much tax they have deferred, otherwise cash/debt figures are meaningless & misleading. In this case at least the company admits that the reduction is net debt is mostly due to tax deferral, although I would have preferred to see the numbers in a table clearly separating out the short-term benefit from deferrals. Remember these deferred payments have to be paid up by end March 2021. Here is the Govt guidance on VAT deferrals.

My opinion - this seems a good company, clearly experts in logistics. I explained here why the balance sheet is such a mess. The pension fund in particular is an ongoing, and very large, cash drain. That rules it out for me, but for people who don't worry about balance sheets, then there's nothing to stop the shares going up. With a very good update today, this share looks like it's going higher in the short term. At some point I think it will need to do an equity fundraise to fix that balance sheet.

Whilst a beat against expectations is good, it seems that forecasts were reduced far too much, given that a lot of its business is defensive stuff like supermarkets. The darker blue line below is the current FY 03/2021:



Tristel (LON:TSTL)

Share price: 410p (down 12% at 08:26)
No. shares: 45.3m
Market cap: £185.7m

Trading Update

Tristel plc (AIM: TSTL), the manufacturer of infection prevention products, provides a trading update for the year ended 30 June 2020.

A reader posted…

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