PUNT OF THE WEEK
WHAT IS IT?
Wincanton is a logistics company which provides transport and warehousing in the UK and Ireland for retail, manufacturing, defence and construction.
WHAT’S THE LATEST?
It has benefited from the growth in online retailing which has boosted demand for its transport and warehousing services, says Ian Forrest at The Share Centre. Customers include many blue-chip firms in defensive sectors which means revenues should be resilient.
WHO BACKS IT?
Major shareholders include Aberforth Partners, Columbia Threadneedle Investment, Schroder Investment Management, M&G Investment Management and Polar Capital.
WHY SHOULD YOU INVEST?
The shares offer an attractive yield of 4.8pc. Investors seeking a balance of income and growth would be well placed to buy Wincanton.
...AND WHY YOU SHOULDN’T
The shares are of higher risk, being vulnerable to a general change in sentiment towards smaller UK companies. This is especially true given uncertainty around UK’s decision to leave the EU and the possible impact on the economy.