Steve Parkin cashes in £62m Clipper stake

Clipper Logistics executive chairman Steve Parkin has cashed in shares worth £62.2m after selling more than 10% of the company he founded.

Parkin has taken advantage of a huge rise in the business’s share price to nearly halve his personal stake although he “intends to remain a significant shareholder for the long-term” in the Leeds-based business.

Clipper said the sale was “part of an estate planning exercise and to improve the liquidity in the company’s shares”.

“I remain as confident and focused as ever in the future growth prospects of Clipper,” said Parkin.

“Over the last year we have demonstrated our ability to act quickly and effectively to solve complex challenges for our clients, and the growth we have delivered through this period is testament to Clipper’s leading position in the ecommerce logistics market.”

Clipper has been one of the business winners of the coronavirus crisis, having benefitted from the rise in online sales throughout the pandemic.

The firm reported in December that its revenue was up 20% after growing e-fulfilment operations, crediting “the structural shift and acceleration of online retail”.

Parkin sold 11m shares at 565p-per-share, which is more than double their value a year ago.

Clipper’s share price also rebounded strongly since the market fall in March. When the pandemic hit, Clipper’s shares fell to 135p, valuing Parkin’s entire stake at less than £35m.

Today his remaining 13.9% stake, after his £62m sale, is valued at around £80m.

Parkin is a high-profile fan of Premier League club Leeds United, and has previously considered takeover bids of the club. Clipper agreed a two-year deal to become the official training kit sponsor and official logistics partner when the club secured promotion last summer.

Numis Securities Limited and Shore Capital Stockbrokers Limited acted as joint bookrunners in connection with the placing.