Listed logistics firm reaps the rewards of online retail boom

The shift to e-commerce has resulted in strong momentum for Leeds-based company Clipper Logistics, which has today published its interim results for the six months to 31 October 2020.

Group revenue rose 19.8% to £305.2m (six months ended 31 October 2019: £254.8m) with particularly robust revenue growth of 37.7% in e-fulfilment and returns management services.

Pre-tax profits were up 38.2% to £14.3m (H1 FY20: £10.4m) while cash generated from operations was £49.1m (H1 FY20: £19.1m), reflecting increased customer activity within UK logistics and an improved working capital position.

Clipper says it has increased its distribution centre portfolio to accommodate this heightened activity.

It now has 52 sites throughout the UK and mainland Europe with over 14.5m square feet of warehouse space under the Group’s management.

In response to the pandemic, the business has processed over 7.4 billion items of PPE and issued 3.9 billion items on its NHS contract since its beginning at the end of H2 FY20.

Steve Parkin, executive chairman of Clipper, said: “The Group benefited directly from the structural shift and acceleration of online retail such that our e-fulfilment and returns management division saw underlying EBIT growth of 63.3% which included a positive contribution from our Clicklink joint venture.

“In addition, we are immensely proud of the operations which have commenced in the period with major customers including N Brown, Joules, Linenbundle, Revolution Beauty, TM Lewin and Unipart.

“We have a solid new business pipeline in the UK, and we have the infrastructure to deliver innovative, technology-focused omni-channel solutions to retailers.

“Whilst conscious of the UK macro-economic climate, given our strategic positioning in the e-commerce sector, we remain positive about the long term outlook.

“It is pleasing trading has continued to be positive post-period end, with the key Black Friday trading weekend seeing record daily volumes for many customers.

“We therefore expect full year earnings to be materially ahead of the Board’s previous expectations.”

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