The provider of supply chain solutions in the UK & Ireland Wincanton continues to trade in line with market expectations, the company said in a trading update for the period covering October 1st to February 6th.

Its contract logistics segment successfully renewed a number of contracts and secured new business with US furniture retailer Williams-Sonoma, reflecting the "continued performance" of the UK´s construction industry.

Nonetheless, volumes in the above division were described as broadly "in line" with the first half of the year.

Specialist Businesses Pullman Fleet Services "performed robustly", winning new business with Asda and with Argos.

The group further disclosed that there had been no significant change to the general financial position of the company in comparison to the figures unveiled alongside its latest results on September 30th.

Lastly, the firm said it was in consultation with its colleagues over the proposed closure of the Wincanton Defined Benefit pension scheme, affecting 7.5% of the total workforce.

In an afternoon note commenting on the results analysts at Numis wrote that "Recent contract momentum is encouraging, and while Container volumes remain stable at present, we look for improvements as the UK macro-environment continues its recovery."

They reiterated their 'buy' recommendation on the shares and 185p target price.

As of 11:16 shares of the group were 2.08% lower at 141p.

AB

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