Clipper celebrates first year since IPO with doubling of profits

Steve Parkin
Steve Parkin
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​Profits have ​soared​ at Clipper Logistics in its first year as a listed company after it signed contracts with big name clients such as ​John Lewis, Harvey Nichols, New Look, Tesco and Zara.​

As a result the firm has more than doubled its valuation to £230m​ since floating in June 2014.​

The Leeds-based group, which ​distributes goods for blue chip retailers, said it has several new deals in the pipeline.

​Pre-tax profits more than doubled from £3.9m to £9.5m in the year to April 30 while group revenue rose 17 per cent to £234.8m.

​Clipper’s ​executive chairman Steve Parkin said: “We have to say we are delighted with the way the business has performed since the IPO. Being a public company has driven the management to bigger and better things.”

He said the new year has started strongly with the signing of a Click & Collect contract with John Lewis.

The group said the acquisition of Servicecare in December has extended its returns management capabilities to include electrical products and the business has performed well.

The group is on the hunt for other good acquisitions.

Clipper said it is “exceptionally well-positioned” to benefit from the significant growth expected in the online retail sector, where research indicates that by 2022, a third of all UK retail activity will take place online.

The board will pay a final dividend of 3.2p per share, making a total dividend of 4.8p per share.

​Analyst Steve Woolf at Numis said: “We believe Clipper is well-placed to benefit from the increasing complexity of an evolving omni-channel retail market, with the potential for high profit growth over the medium term.”