Leeds’ Clipper Logistics sees strong growth period as revenue hits £165m

Clipper Logistics plc, the Leeds-based provider of logistics solutions to the retail sector, has reported strong financial growth for the six months ending 31 October 2016.

During this period Clipper saw revenue rise to £164.9m, which is a 16.5% rise on last year’s £141.5m figure.

Pre-tax profit, was also up 25.5% to £6.9m, compared to £5.5m in 2015, and the total amount of cash generated from operations rose by 67% to £12.3m (2015: £7.4m).

As a result, Clipper’s earnings per share are now 5.3 pence, which is up 23% for last year’s 4.3 pence.

The company achieved this growth as it extended the Click and Collect network for John Lewis to full national coverage, and formally entered into a Joint Venture with John Lewis.

Clipper also agreed to new contracts with M&S for returns and Halfords for inbound bulk handling and storage.

The company’s European business has also continued to progress, with new contracts secured in Germany which will contribute marginally in the second half with full benefits in the next financial year.

Steve Parkin, executive chairman of Clipper, said: “I am pleased to confirm that the Group has once again delivered strong results in line with the Board’s expectations. Revenue and profit growth has been strong in all sectors, and we have improved further our operating cashflow.

“Our market-leading position in the high-growth area of e-fulfilment and associated services, has been enhanced further by the recent formalisation of a Joint Venture with John Lewis to provide a Click and Collect service dedicated to the needs of high street retailers. We expect this to significantly enhance profits in future financial periods.

“The first half of the current financial year saw strong organic growth on existing contracts, particularly in the ecommerce sector, and this was complemented by a number of new contract wins.

“The new business pipeline continues to be strong, and we expect the positive momentum from existing and new contracts to continue into the second half of the year.

“The Group is pleased to announce an increased interim dividend of 2.4 pence per share, which will be paid to shareholders on 30 December 2016.”