Clipper Logistics Group looks at a possible flotation

AMBITIOUS Yorkshire-based Clipper Logistics Group is looking at options to continue its growth including a stock market flotation.

The Leeds group, which works with major retailers including store chain John Lewis and online clothing business ASOS, could become the latest Yorkshire business to go for an initial public offering (IPO) on the London Stock Exchange following the flotations of Servelec and Safestyle UK at the end of last year.

Steve Parkin, chairman and founder of Clipper, told TheBusinessDesk.com: “We are very well funded and we do not need capital so we can pick and choose from a range of options. We are exploring a few of these at the moment, including a flotation.”

It is believed Clipper has been approached by a number of foreign groups looking at it as a potential acquisition, however Mr Parkin, who started his working life delivering clothing from the back of a van, is likely to want to continue to grow the company, which bought a German firm in November last year.

He runs the company along with finance director David Hodkin and managing director Tony Mannix.

If it does choose the flotation route, then it will probably avoid the busy pre-Easter period and look at the late spring. Industry analysts believe that Clipper, which has turnover of £200m and 3,000 employees, will be valued at at least £120m should it seek an IPO.

Interest in Clipper has been fuelled because it is not just a logistics firm but has developed unique services for retailers who are seeing more and more sales online with ‘click and collect’ one of the big growth areas from the Christmas period.

Clipper has developed a new service – branded Boomerang by Leeds-based creative agency Propaganda – where it will handle goods bought online but returned by customers.

In the UK around 20% to 40% of goods bought online are returned while on the continent in countries like Germany that figure is closer to 50%.

Clipper acquired German logistics firm Geist last year as part of the roll out of its strategic plans for Europe and for it to work with UK retailers looking towards mainland Europe for expansion.

Logistics contributes £55bn to the UK economy, comprising 5% of GDP while this country is the most advanced in Europe for multichannel retailing, with more than 12% of all purchases taking place online.