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Robert.Jervis_43227 Sep 04

Clipper Logistics reports 15% growth in annual revenue

Clipper Logistics reports 15% growth in annual revenue image

Particularly pleased with the evolution of its European business

Clipper Logistics announced its full year results for the year ended 30 April 2019. The financial year saw a continuation of a long-standing track record of achieving significant organic revenue growth, complemented by the benefit of strategic, value enhancing acquisitions made in previous years.

Group revenue increased by 15.0% from £400.1 million, to £460.2 million as Group EBIT declined 3.4% to £20.2 million (2018: £20.9 million). Group EBIT before Property-related income increased by 18.0% from £14.5 million, to £17.1 million. Group profit after tax fell 6.3% to £13.4 million (2018: £14.3 million).

Clipper is managed through two distinct operating segments, being value-added logistics services and commercial vehicles. The value-added logistics services segment is further subdivided into two business activities, being e-fulfilment & returns management services and non e-fulfilment logistics.

Despite the challenging market conditions facing the retail sector, the Group achieved another strong financial performance, growing revenue by 15.0%. It commenced significant new contracts with high profile retailers including subsidiary PrettyLittleThing and Sports Direct in the UK, and Mountain Warehouse for whom it has introduced e-fulfilment activities in Europe. In addition, Clipper saw significant growth in activity with many of customers including Asda, Browns, Morrisons, Halfords, New Look, Wilko and ASOS in the UK, and Westwing and s.Oliver in Europe.

The Company has been particularly pleased with the evolution of its European business, which has won significant contracts with customers including ASOS, Westwing and Mountain Warehouse, as well as organic growth.

In addition, RepairTech, which was acquired in the previous financial year, is performing well and together with Servicecare has seen new contract wins with Vestel and Tech Data. They have established a presence in Europe where the Company now handle electrical returns for Amazon.

The Group continues to be one of the leading providers of value-added logistics and e-fulfilment solutions to the retail sector in the UK, and is rapidly growing its operations in Europe, a significant growth area for the Group. Recent contract wins, together with a strong pipeline of new business activity and the further evolution of its Click and Collect proposition, place the Group in an excellent position to achieve further growth both in the UK and internationally. Indeed, Clipper's approach of adopting a hands-on, long-term and pro-active relationship with its retail clients allows it to continue to support its clients during these changing retail market conditions, and the uncertain political and economic landscape.