Clipper Logistics has bought return logistics provider Servicecare Support Services for £5.7m and published its first set of results since its flotation earlier this year.
The acquisition was made as part of Clipper’s strategy to enhance its Boomerang returns-service and increase its presence in the electrical goods returns market.
Servicecare’s MD Dave Aspin will remain in his current role, but chief executive Jerry Day and business development director Gary Furness will act as consultants for 12 months after the acquisition of the business, which has sites in Oldham and Burton-on-Trent.
Clipper chief executive Steve Parkin said: “The returns arena is the battleground for competitive advantage and we are delighted to add a further string to our bow. Servicecare is a successful and profitable business with an impressive blue chip client base that complements Clipper's already strong market position and long-standing relationships with retailers."
In an interim results statement today, Clipper said its Boomerang service has continued to grow and with the electronics purchase now covers this as well as clothing and general merchandise returns.
Clipper also revealed a 20% increase in group turnover to £111.5m for the six months to 31 October (2013: £93m). Turnover derived from e-fulfilment logistics rose 35% to £27m, while non-e-fulfilment logistics grew 18% to £49m.
Group pre-tax profit rose to £3.5m, up from £2.1m in 2013.
Parkin said of the results: "These are the first interim results of Clipper post-IPO, and I am pleased to report that the group has delivered results in line with the board's expectations, with strong revenue and profit growth, and good cash conversion.
"Clipper continues to have a market-leading position in the high-growth area of e-fulfilment logistics, and has seen strong organic growth on existing contracts complemented by the impact of new contract wins.”
During the period it won contracts with Philip Morris, ME+EM, s.Oliver, Sainsbury’s and Mint Velvet, among others.
