Boom in online retail drives strong results at Clipper

The Leeds-based firm said revenue jumped 33 per cent to £406m in the six months to October 31 following strong revenue growth in both E-fulfilment and returns management services.

Earnings rose 12 per cent to £23m due to strong revenue growth in value-added logistics.

Steve Parkin, executive chairman of Clipper, said: “I am pleased to announce further significant progress across the group delivering an impressive growth in revenue of 33 per cent and EBIT growth of 12 per cent.

"This growth is due to continuing momentum within online and the reopening of bricks and mortar retail.”

“In addition, I would like to welcome new major customers to whom we have commenced the provision of services in the period. We are also delighted to enhance our existing partnerships with long standing customers."

Tony Mannix, Clipper's chief executive, said he is not worried that online retail will suffer once the pandemic ends and people return to high streets.

"The reality is that people have got used to shopping online," he said.

"We think there will be growth in Click and Collect and that will support the high street. We are not seeing online slow."

David Hodkin, Clipper's chief financial officer, added: "Research shows that 37 per cent of fashion and footwear retail takes place online now and is forecast to grow to 50 per cent by 2025 so independent research indicates that online will continue to grow."

Mr Parkin said that Clipper is expanding its presence in mainland Europe.

"Our facility in the Netherlands is now fully operational and our recent acquisition of CE Repair complements our technical services division and extends our offering and geographical reach within mainland Europe," he added.

Asked whether Clipper's expansion will focus on mainland Europe in future, Mr Hodkin said: "No, we think it will be a mixture of the UK, Europe and the rest of the world."

Mr Parkin said: “Our recent announcement on the formation of a joint venture with Farfetch focusing on the luxury online market will significantly extend our geographical reach further both in Europe and further afield.

“Looking to the macro-economic factors currently in play in the UK and beyond, considering the robustness of our business model and continuing momentum within e-commerce, the board are positive about the long term outlook. I am proud of the way that our team has successfully navigated these factors during the period and would like to thank them for all of their hard work."

Since the start of November, the group has seen record volumes compared with 2020 on many of its sites.

Mr Parkin said: “Our unique proposition utilising technology-led omnichannel solutions which enables retail, coupled with strategically aligned acquisitions that are value accretive, will deliver continuing growth for the group in the future.”