The recession, the bankruptcy of Woolworths, the cost of slimming down, and rising debts and bank charges, have seen profits almost halve at the trucking group Wincanton.

The group, one of Europe's largest logistics companies, reported a slump in pre-tax profits from £36 million to £20 million in the year to the end of March.

The figures were hit by a £23 million restructuring charge while financing costs were up 70% to £28 million.

Debt in the year has leapt to £176 million from £104 million, and the group warned that with its banking facilities due to terminate in November, negotiations of new borrowing terms are likely to lead to higher interest costs and higher banking fees.

Despite a 9% increase in revenues to £2.3 billion, underlying pre-tax profits were down 1.2% indicating the squeeze on margins brought by the recession and the loss of key customers.

Shareholders — who have seen the stock, up 1p today at 168p, halve in value over the past year — were buoyed by news that the dividend remains intact at 14.91p.

Chief executive Graeme McFaull conceded the “short-term impact” of the recession but said the group has “attractive growth potential”.