Record Black Friday sales boost Clipper

Clipper Logistics, which distributes goods for retailers such as John Lewis, Marks & Spencer, Asda and Morrisons, has reported a 12 per cent jump in half year revenues to £255m and said it saw record trading over the Black Friday weekend.
Clipper delivers goods for John Lewis, Marks & Spencer, Asda and MorrisonsClipper delivers goods for John Lewis, Marks & Spencer, Asda and Morrisons
Clipper delivers goods for John Lewis, Marks & Spencer, Asda and Morrisons

Chief executive Tony Mannix said some customers reported a 45 to 65 per cent leap in sales over the Black Friday to Cyber Monday weekend.

"The teams knew what they were doing and worked very closely with the customers," he said.

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"We had people and equipment in the right place at the right time."

Executive chairman Steve Parkin added: "It's quite safe to say we have created operational excellence over the last week. We've been inundated with huge volumes. We are delighted with the result. The capability across all our sites has been outstanding.

"On one particular site we hit the busiest day ever on three consecutive days."

Asked about predictions for Christmas trading, Mr Mannix said: "The worry retailers tend to have, and obviously we won't know until we get there, is that there is a chance that Black Friday - and the period which we call the Black Friday two weeks - risks Christmas coming early.

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"It's a waiting game to see how much of the volume that has already been taken is volume that historically would have been taken in the final days before Christmas. Although that's more of a retail question than for us."

The Leeds-based firm said growth was driven by a strong performance in e-fulfilment and returns management.

Pre-tax profits rose 10 per cent to £10m in the six months to October 31.

The group has started new operations with Marks & Spencer, Hope & Ivy, Simba Sleep, SLG, Amara and Shop Direct.

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Automation programmes have started with fashion retailer Superdry and trials of robotic technology have also commenced with a number of other UK customers.

Mr Parkin said: "Notwithstanding the difficulties facing the UK high street and the uncertainties of the UK political environment in the current year, Clipper remains positive about the longer-term outlook and believes the group is well positioned to achieve further growth in both the UK and internationally.”

Talking about the uncertain political environment, Mr Parkin said: "I think it's affected everybody. Brexit obviously has been a nightmare in terms of people putting investment into the businesses and growing.

"Everybody is nervous about what's going to happen next. Hopefully there will be a positive outcome in the election next week and then we can all move forward. Once that happens I believe there will be quite a lot of growth in our sector."

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Mr Mannix said: "The issue has been we just want some certainty. We're not suggesting one way or another which party is appropriate, but we're saying we want people to make a decision and let's get on with it."

Analyst Peter Ashworth at Shore Capital said: "The group has announced interims to the end of October which show continued impressive revenue and EBIT growth, driven largely by strong growth in e-fulfilment and returns management and an improving contribution from the group’s Clicklink joint venture."