UPDATE 2-Wincanton profit falls, sees stability returning

* H1 pretax profit 18 mln stg vs 21.4 mln stg

* Holds interim dividend at 4.83 pence

* Extends banking facilities

* Shares down 0.9 pct

(Adds company, analyst comment, shares, details)

By Rhys Jones

LONDON, Nov 5 (Reuters) - British haulier Wincanton Plc (WIN.L) reported a 16 percent fall in first-half profit, hit by lower client activity and restructuring costs, but said stability was returning and the outlook was positive.

"There has been much more stability in the last four to six months but the helter-skelter that we were on 12 months ago seems to have gone and hopefully that will lead to growth," Chief Executive Graeme McFaull told Reuters on Thursday.

The company, which transports goods such as food, documents and materials for recycling around the UK and mainland Europe, posted an underlying pretax profit of 18 million pounds ($29.7 million) on revenue 9.9 percent lower at 1.8 billion pounds for the six months to the end of September.

The company, whose biggest clients include drug-maker GlaxoSmithKline Plc (GSK.L) and retailer Tesco Plc TSC.L, held its interim dividend at 4.83 pence.

Wincanton, which last month said it would close some of its depots in Germany, paid 3.8 million pounds in restructuring costs in the first half, with a further 13 million expected in the second half.

"We have sorted out of road transport activities in Germany, which had been holding back our profitability in mainland Europe, and the elimination of those losses gives us a platform to grow there again," said McFaull.

"On a pretax level we see profits coming in at between 34 and 36 million in the current financial year."

Wincanton is on average expected to report a pretax profit of 35.87 million pounds, according to a poll of six analysts by Thomson Reuters I/B/E/S.

During the period, Wincanton renewed its lending arrangements and now has a three-year 270 million pounds facility with a group of banks including Lloyds, RBS and Barclays.

"The renewal of the banking facility removes uncertainty, despite the inevitable cost. However, a better operating result in the second half will likely be offset by a higher finance charge," said analyst Douglas McNeill at brokerage Astaire.

Shares in the group, which have fallen 11 percent in the last month, were 0.9 percent down at 214-1/2 pence by 0920 GMT, valuing the business at around 250 million pounds.

The group recently won contracts worth 275 million pounds with British retailer Marks & Spencer Plc (MKS.L) to run parts of its supply chain and said it was positive on its prospects. [ID:nBNG409694]

Wincanton issued a profit warning earlier this year due to the economic downturn but has since been able to cut costs to offset declining volumes. (Editing by Matt Scuffham and David Holmes) ($1=.6071 Pound)