Wincanton commits to delivering long-term sustainable supply chain solutions
Wincanton has committed to net zero emissions by 2040, alongside the announcement of its full year results revealing strong growth across all sectors .
The ESG strategy outlines plans to deliver long term sustainable solutions across each of its business sectors, Digital & eFulfilment, Public Sector and Industrial, General Merchandise and Grocery & Consumer, and to lead the way in responsible supply chain management.
The environmental strategy contains five core commitments:
- Net zero emissions by 2040: Three “net zero roadmaps” have been developed which set out how the Group will achieve its target to be net zero by 2040 across transport, property and waste. .
- Eliminate waste: By 2025, through a waste elimination programme, the Group will double recycling rates and ensure all plastic packaging will contain a minimum 30% of recycled product. By 2030, Wincanton aims to eliminate all single-use plastics, removing up to 300 tonnes of waste.
- Offering net zero propositions to all customers: The Group has committed to providing net-zero deliveries on home delivery operations throughout its transport network by April 2022. As part of this, Wincanton is working on offering diesel alternative fuel options, such as Hydrotreated Vegetable Oil (“HVO”) or biomethane fuel options, that will reduce transport emissions by 70 – 85%.
- Innovation and collaboration: Wincanton is working with its industry partners to tackle some of the big issues within the logistics sector, including how to eliminate red diesel use for refrigeration by 2030 and launching a circular packaging programme.
- Wincanton Woodland: A woodland planting scheme provides Wincanton’s customers an opportunity, in the short-term, to offset their own carbon emission through a certified and recognised programme.
James Wroath, Wincanton Chief Executive Officer, said: “Today marks a significant step change in Wincanton’s commitment to deliver long-term sustainable supply chain solutions for our customers. This is something we know is a primary consideration for all businesses which is why we are committed to supporting them every step of the way.
“We’re pleased to have already met such a significant milestone to become the first premium home delivery service in the UK to offer a net-zero service and look forward to expanding this over time.”
Financial Highlights for the financial year ended 31 March 2021
• Revenue increased 1.7% to £1,222m:
o Full year growth of 5.6% from continuing businesses, 12.7% in the second half
o Strong growth across all sectors after initial pandemic impact
• Underlying profit before tax of £47.2m (2020: £52.8m):
o Rapid recovery following initial pandemic disruption
o Surge in eCommerce activity, unprecedented retail volumes, upturn in construction activity
• Stronger balance sheet:
o Net cash position of £11.9m (2020: net debt of £10.1m)
o Pension triennial valuation agreed, reducing risk and contributions, £48.2m net surplus at year end
• HMRC withdraw excise duty and VAT assessments, following internal reviews
• Recommended final dividend of 7.5p, following interim dividend of 2.85p
James Wroath, Chief Executive Officer, said: “Wincanton has made significant progress in a challenging year, showing flexibility, agility and resilience for our customers across our business. These results clearly show the benefits of the breadth of our offer and the commitment of our people who stepped up to meet the challenges we faced. We have grown revenues strongly since the early impact of the pandemic, fuelled by particularly good performance in Digital & eFulfilment and new wins in the public sector. We continue to invest to ensure we can deliver on the opportunities ahead in these markets. 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. We have taken this strong momentum into the new financial year and current trading is encouraging.”
“We have also made positive progress against the strategy set out last year. We completed the reorganisation of the business, which provides us with a clearer focus on growth markets and ensures we are well placed to respond to the changing dynamics in our markets that have been accelerated by the Covid-19 pandemic.”
“Looking ahead, we remain confident that we are well placed to make further progress, though we are mindful of the competitive environment and short term uncertainties as the country moves out of lockdown. We have in place the right strategy and the right people and believe our wide range of supply chain services and capabilities will continue to enable growth across a broad set of sectors.”