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Profits soar with Clipper Logistics

Steve Parkin, Clipper Logistics Group, Gelderd Road, Leeds.
Steve Parkin, Clipper Logistics Group, Gelderd Road, Leeds.
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Clipper Logistics saw revenue increase by 17.6 per cent to £400.1m, with profits soaring to £17.9m.

In the year to April 30 the Leeds-based provider of value-added logistics solutions, e-fulfilment and returns management services to the retail sector, grew its group EBIT1 by 16.3% from £17.9 million to £20.9 million.

Earnings per share increased by 13.6% to 14.2p.

Cash generated from operations was £24.5 million (2017: £25.7 million).

Dividend per share increased by 16.7% to 8.4p (2017: 7.2p).

The firm commenced significant new contracts with high profile retailers including Edinburgh Woollen Mill, River Island, M&S and ASOS.

It acquired RepairTech Limited in June 2017. This was immediately earnings-enhancing and successfully amalgamated with Servicecare to create a new Technical Services operation.

It also successfully opened its first facility in Poland where it has already secured three new contract wins.

There was also significant growth in activity with many of its customers including Asda, Morrisons, Philip Morris, Wilko and s.Oliver.

Executive chairman Steve Parkin said: “The Group is proud of its historical track record of delivering significant organic revenue growth and integrating strategic, value-additive acquisitions.

“Our latest set of full year results show continued strong EBIT growth, growth achieved through remaining true to each of our core strategic principles: expanding the customer base, developing complementary services for customers, continuing to expand in Europe and identifying and seeking targeted, complementary acquisitions.

“We are excited by the new people initiatives we have launched in the year, including Team Clipper and Fresh Start, the former demonstrating our commitment to our people and the latter demonstrating our commitment to Corporate Social Responsibility.

“We are conscious of the wider forces affecting the UK retail sector; whilst this means that we have to bring an element of caution into our planning, recent contract wins, together with a strong pipeline of new business activity and the further evolution of our Click and Collect proposition, leave the Group well positioned to achieve further growth both in the UK and internationally.”