Wincanton supply chains to be net zero by 2040, as profits slip
Supply chain partner Wincanton is set to be net-zero by 2040, the group said today, but has been knocked slightly by a slip in profitability.
With environment, social and governance (ESG) factors climbing increasingly higher on the investor agenda, the group’s shares were up 3.95 per cent to 447p per share this afternoon.
The group raked in total revenue of £1.22bn in the year to 31 March, increasing £20.7m, as it enjoyed a surge in eCommerce activity and ‘unprecedented’ retail volumes.
Underlying profit before tax fell slightly by £5.6m to £47.2m, however, slipping 10.6 per cent due to the pandemic hitting its construction and energy businesses in the first half of the year.
“While profitability was impacted by the unprecedented disruption caused by Covid-19 in the first half it was significantly ahead of pre-pandemic levels in the second,” CEO James Wroath said.
The logistics group has since seen an upturn in construction activity and has launched a new ESG strategy today to commit to net-zero emissions by 2040. Home deliveries are also set to be net-zero by April 2022, the group said.
Home deliveries will also be run by an all-electric delivery fleet by 2026, the group added. Meanwhile, recycling rates from residual waste is set to double by 2025 – with all non-recyclable waste eliminated by 2030.
The group’s share dividends bounced from 3.90p in 2020 to 10.35p this year.
“Today we set out our new ESG strategy which sets us on a path to net-zero by 2040 with a clear plan to decarbonise our supply chain services and operations,” Wroath continued, adding that the group remains confident for the rest of 2021.