    
 WINCANTON PLC
Annual Report & Accounts 2005
27 June 2005
Excerpt from the Operating and Financial Review
The financial year to 31 March 2005 was a year of further progress, both operationally and financially. In a busy and successful year across Europe for our operational and business development teams, we delivered double-digit growth in adjusted pre-tax profit and near double-digit growth in adjusted earnings. A further considerable reduction in net debt confirmed the strong cash flow potential of the business and its asset base.
Gross capital expenditure was offset by £20.0m of asset sales in the year. An exercise to re-finance some 660 trailers from our total UK fleet of approximately 1,700 trailers generated £13.3m of the total.
The net effect of these and other cash flow movements was a reduction in our year-end net debt from £75.3m at 31 March 2004 to £53.0m at 31 March 2005. The 31 March 2005 position is net of £33.5m of cash held within our captive insurance company to fund future potential insurance claims (£31.7m at 31 March 2004).
The structured financing of the 660 trailer fleet was arranged through Schechter & Co. Limited.
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Schechter & Co. Limited