Investors with an appetite for recovery plays should buy Wincanton (WIN). Purchase the supply-chain specialist ahead of Monday’s interims (12 Nov) which should confirm the firm’s ongoing restructuring remains well on track.

Under the stewardship of chief executive officer Eric Born and group finance director Jon Kempster, Wincanton has, over the past 18 months, steadily reduced its European exposure. It has instead focused on its UK and Ireland businesses.

This approach to strengthening the core portfolio looks to be paying off for the £84.3 million cap logistics specialist. Encouragement can be taken from contract wins such as the multi-channel distribution deal with Kingfisher (KGF)-owned B&Q in September, which builds on two further agreements announced in May of this year.

Last month (8 Oct), the Wiltshire-based firm announced a five-year deal with Morrison (MRW) which will see the group provide supply-chain expertise to the supermarket chain as it rolls out its ‘M Local’ convenience stores in London.

Challenging market conditions have meant that the road to recovery for Wincanton has been slow, even rocky at times; group revenue in the UK and Ireland business fell 9% to £1.2 billion in the year to 31 March, which translated to a loss before tax of £47.4 million.

Debt remains a concern for Wincanton’s balance sheet. The group reported net debt of £114.5 million at the end of March 2012; down from the previous year’s £151.8 million.

Shares says: Buy Wincanton at 69.5p for recovery potential.