Clipper Logistics' turnover and pre-tax profit up as retail strategy pays off

Clipper Logistics has delivered another strong performance, and predicted it will continue as its evolving model of serving retailers’ growing e-fulfilment and product return needs bears fruit.

Announcing full-year results to 30 April, its third year listed on the London Stock Exchange, group turnover was 17.2% higher year on year at £340m (2016: £290m).

Pre-tax profit increased 22% to £16m (2016: £13.1m).

Steve Parkin, executive chairman of Clipper Logistics, said: “The group is proud of its track record of consistently developing effective solutions to address the changing needs of retailers in today’s continually evolving consumer landscape.

“Our latest set of full-year results reflects the trust and confidence that our customers have in our ability to enable them to achieve their service proposition to their own customers, through the provision of relevant and cost-effective services. Clipper’s strategy of driving organic growth and seeking targeted, complementary acquisitions continues to enhance shareholder value.”

Parkin said that as the company moved into its new financial year it had a strong pipeline of new business opportunities.

“Clicklink, our Click and Collect solution owned jointly with John Lewis, now provides a multi-user platform which is gaining significant traction with other retailers.

“In addition, the recent acquisitions of Tesam and RepairTech broaden both our customer base and our suite of services, and will be immediately earnings-enhancing,” he said.

During the year the company commenced contracts with Halfords, Inditex and Links of London. It saw organic growth with customers Asos, Morrisons, Wilko and Zara amongst others.

This offset the loss of fashion retailer Ted Baker, which XPO Logistics picked up.

Clipper was providing e-commerce fulfilment for Tesco at a property leased by the supermarket group in Daventry. However, due to space elsewhere Tesco relocated into its Fenny Lock site in August 2016. Compensation for the termination of the contract meant the financial impact to

Clipper was negligible, and the operator has now taken on the Daventry lease, from where it is operating its Halfords contract.

The board has recommended a final dividend of 4.8 pence per share, making a total dividend for the year ended 30 April 2017 of 7.2 pence per share.

Analysis of group turnover