Clipper on the road to expansion as profits rise 25%

LOGISTICS firm Clipper has had a successful first half following major deals with John Lewis and M&S.

Group revenue for the half year to 31 October 2016 was up 16.5% to £164.9m whilst group pre-tax profits increased 25% to £6.9m, compared with the same period last year when profits reached £5.5m.

During the period it agreed new contracts with Halfords and M&S for returns, and in November 2016 it agreed a “groundbreaking” click and collect deal with John Lewis which will see the companies invest £3.4m in the launch of a joint delivery venture.

The Leeds-based firm, which underwent an IPO two years ago, also reported that it had had a “very successful” Black Friday and Cyber Monday and that the Brexit decision had “little impact” on the business.

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.

“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 e-commerce sector, and this was complemented by a number of new contract wins.”

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