Clipper Logistics saw its pre-tax profit climb more than 25% in the second half of 2016, boosted by new contract wins and the expansion of its Click and Collect service.
Reporting its interim results for the six months to 31 October 2016, the company revealed pre-tax profit had risen to £6.9m (2015: £5.5m), with group turnover also up 16.5% to £164.9m (2015: £141.5m).
Key factors driving growth across the company include the expansion of its Click and Collect service to nationwide coverage and the creation of its Click and Collect joint venture with John Lewis, which aims to roll out the service to other retailers nationwide.
Other highlights in the period include a new returns contract with M&S, a deal with Halfords for inbound bulk handling and storage, and a boost to the firm’s tobacco contract packing activities, thanks to the EU's Tobacco Packaging Directive.
Contracts inked last year with Browns and Pep&Co, as well as the Click and Collect operations with John Lewis, M&Co, and Kidly also helped Clipper’s profit surge, the company added.
The company also reported significant organic growth with long-standing customers including ASOS and Philip Morris and more recent customers including Gallaher and Links of London.
Cllipper’s commercial vehicles division also put in a very strong performance, driven by new vehicle sales, the company said.
The group is continuing its hunt for new acquisitions both in the UK and Europe, where it has recently won a number of new customer contracts and some cross-border operations with UK customers.
The group said Brexit will have little impact on the business since around 70% of its revenue is on open book terms, providing “a very high degree of protection against both cost inflation and volume downsides.”
It added that that Clipper is also “well-placed to be able to compete for labour” should the government introduce post-Brexit immigration restrictions
Steve Parkin, Clipper executive chairman welcomed the strong results and said the joint venture with John Lewis is expected to “significantly enhance profits” in the future along with a strong pipeline of new business.
