Robert.Jervis_43227 Dec 07

Growth for Clipper following launch of fashion retailer facility

Growth for Clipper following launch of fashion retailer facility image

Turnover and pre-tax profits have grown in the interim results for Leeds-headquartered Clipper Logistics, boosted by the launch of its new 600,000 sq ft facility in Sheffield for fashion retailer Pretty Little Thing and work with longstanding customers including Asda, ASOS and Wilko.

The listed company reported turnover of £227.9m for the six months ended 31 October 2018, up 14.1 per cent £199.7m in the same period of 2017.

Group pre-tax profit increased to £9.3m, from £7.9m the year before, with group EBIT growing by 16.1 per cent to £10.7m.

During the period, Clipper began work on a new e-fulfilment operation for Pretty Little Thing from a new 600,000 sq ft site in Sheffield.

The company also achieved organic growth from its e-fulfilment operations with longstanding customers including Asda, ASOS and Wilko, as well as from recent contract wins including Browns and Silkfred.

It also secured new non e-fulfilment contracts with Sports Direct and Halfords.

Steve Parkin, executive chairman of Clipper, said:

"The group continues to be exceptionally well-placed to benefit from the continuing migration to online retailing and the increasing propensity for consumers to choose click-and-collect services when placing orders online.

"Our recent contract wins, including Sports Direct and an extended relationship with Halfords, provide significant earnings momentum into the second half of the current financial year and beyond.

"We are excited about the future growth of our European operations, as the contracts with s.Oliver, ASOS and Westwing evolve."

He added that the Clicklink Logistics joint venture, which is owned on a 50/50 basis by John Lewis and Clipper, was "well-positioned to enhance group earnings" thanks to new clients and improved rates with existing customers.

Clipper has also announced an interim dividend of 3.2 pence per share, a 14.3 per cent increase on the previous year.

Separately, Clipper Logistics has extended its contract with one Asda, for both one-man and two-man fulfilment for Asda’s General Merchandise and George product ranges. The original agreement began in 2008, when a ten-year contract was signed.

Clipper is currently responsible for receipt, storage, returns processing and online order fulfilment, with the one-man range located and fulfilled from Clipper’s site in Ollerton, UK, whilst the two-man range is fulfilled by Clipper from Doncaster, UK.

Carl Muir, Operations Director at Clipper Logistics says:

“We are looking forward to expanding together with Asda, as increased volumes drive additional resource requirements, with the possible addition of a further packing machine in 2019. We look forward to continuing to maintain our strong service levels and reinforce the efficiency/effectiveness of our partnership.”