The operations will be sold for a consideration of approximately GBP1.5m. Net liabilities of approximately GBP1.0m, primarily in respect of leased fleet, will transfer to the buyer.
After fees and provision for costs of separation, the Group expects to report a small exceptional gain on disposal.
The disposal of Containers is aligned with the Group’s strategy of focusing on its core markets that offer the greatest potential for growth. Containers, which sits within Specialist Services in the Group’s new reporting structure, provides port to distribution centre container logistics services.
The business is subject to a high-level of volatility in the daily demand for its services and the short-term nature of its contracts differs from Wincanton’s core business model, where visibility of earnings is prioritised.
Containers is likely to require investment within the next two years and Wincanton is committed to directing investment towards higher value areas of the Group.