Clipper sees online sales boom during pandemic

The Leeds-based firm said revenue rose 20 per cent to £305m in the six months to October 31 following a 38 per cent increase in e-fulfilment while underlying earnings rose 54 per cent.

Clipper has increased its UK footprint and expanded its warehouse space to accommodate this increased activity and now has 52 sites throughout the UK and mainland Europe, with over 14.5 million square feet of warehouse space.

In terms of the pandemic, Clipper has processed over 7.4 billion items of PPE and issued 3.9 billion items on its NHS contract. The group was named '2020 National Courier Awards Military Collaboration' winner for its work with 101 Logistic Brigade in support of the NHS in the fight against Covid-19.

Over the six months, Clipper won new contracts with N Brown, Gordon Bros, H&M, Joules, Linenbundle, Lussostone, Revolution Beauty, T M Lewin and Unipart.

It said this momentum will continue into the second half as new operations start with high profile customers.

Full year earnings are now expected to be materially ahead of the board’s previous expectations. The group said it is positive about the longer term outlook and it is well positioned to achieve further growth both in the UK and internationally.

Clipper said it delivered a successful Black Friday weekend, with many sites reporting record volumes.

Steve Parkin, executive chairman of Clipper, said: “The group has successfully chartered the uncertainty and disruption caused by the pandemic to deliver impressive revenue growth of 19.8 per cent and underlying EBIT growth of 54.3 per cent.

"The group benefited directly from the structural shift and acceleration of online retail such that our e-fulfilment and returns management division saw underlying EBIT growth of 63.3 per cent which included a positive contribution from our Clicklink joint venture.

“In addition, we are immensely proud of the operations which have commenced in the period with major customers including N Brown, Joules, Linenbundle, Revolution Beauty, T M Lewin and Unipart.”

Mr Parkin thanked all his colleagues, saying they have "worked tirelessly to continue to support our customers through the pandemic".

He said that whilst conscious of the UK macroeconomic climate, given the firm's strategic positioning in the e-commerce sector, he remains positive about the long term outlook.

"It is pleasing trading has continued to be positive post-period end, with the key Black Friday trading weekend seeing record daily volumes for many customers," he added.

"We therefore expect full year earnings to be materially ahead of the board’s previous expectations. Given this financial and operational momentum, Clipper remains confident that the group is well positioned to achieve future growth, both in the UK and internationally.”

The group has raised its interim dividend by 14 per cent to 4.0p per share.