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Robert.Jervis_43227 Aug 25

Clipper revenues soar

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“Significant organic growth”
Turnover has grown by almost £200m in the full-year results for Clipper Logistics boosted by a shift towards ecommerce.
 
The listed logistics business reported group revenue increased to of £696.2m for the year ending 30 April 2021, up 39.1 per cent from £500.7m in 2019/20.
 
Profit before tax and amortisation and exceptional costs was £28.8m, up from £21.3m the year before. Underlying EBIT grew by 52.4 per cent to £31.4m.
 
Exceptional costs of £800,000 were incurred, comprising £500,000 of aborted acquisition costs and £300,000 of redundancy costs incurred in the commercial vehicles segment as a result of the Covid-19 pandemic.
 
Clipper said it had achieved significant organic growth during the period, which had been driven by high e-fulfilment volumes as a result of a shift to online, with volume growth and extension of services on existing contracts, notably with ASOS, Farfetch, John Lewis, Westwing and Wilko.
 
New contracts in the ecommerce market were secured with Linenbundle, Revolution Beauty and Unipart, and there was also volume growth with existing customers, including Asda and Morrisons.
 
The group expanded its estate portfolio, with 16 million sq ft of space now under management in over 50 locations in five territories across Europe. It also welcomed an additional 2,000 staff to support further growth.
 
Following the end of the financial year, Clipper acquired Wippet, which is set to launch an online B2B marketplace to serve the healthcare sector in the UK. It has also begun new operations with Mountain Warehouse and JD Sports.

Steve Parkin, Executive Chairman of Clipper commented:

"I am pleased to report a very strong set of results, which in a very fluid environment demonstrates the ability and agility of the Group and the robustness of our business model to capitalise upon opportunities and deliver growth. We have grown revenue by £195.5 million to £696.2 million and we have also grown Underlying EBIT by a much larger 52.4% to £31.4 million.

“The market has witnessed significant recent change particularly with the acceleration of the growth in e-fulfilment which now represents 70% of our logistics revenue. Our unique proposition, which offers the full end to end range of services within the e-commerce field, has allowed the Group to benefit from this strong dynamic and will provide further momentum in the coming years. Our recent contract wins demonstrate that we are our customers' partner of choice both in and outside of the UK, for delivering innovative, sustainable, and resilient added value solutions.
 
“I would like to personally thank all of our colleagues throughout the business, for their commitment and engagement in maintaining our services through the pandemic.
 
“Our highly deployable asset-light model has enabled us to reinforce our pan-European proposition during the financial year, which together with a strong pipeline of new business activity ensures that the Group is in an excellent position to achieve further growth both domestically and internationally. The prospects for the Group remain strong and we are confident that we will deliver further shareholder value accretion in the coming years"