Clipper delivers strong performance

Clipper Logistics has said it continued to “perform strongly” throughout the 2021 financial year which ended 30 April as its revenue is expected to reach £698m.

The Leeds-based business has said it expects revenue for the year to surpass the half a billion pound milestone it achieved last year by 39%. As a result of the positive forecasts the firm says it “looks forward” to further expanding its European operations and will explore M&A opportunities in Europe and North America,

Benefitting from the rise in e-commerce activity the firm which describes itself as the leading provider of value-added logistics solutions, e-fulfilment and returns management services to the retail services sector, noted that it is expecting the shift to online to continue and fuel its e-fulfilment activities.

Steve Parkin, executive chairman of the business who in January cashed in shares worth £62m said: “FY21 has been an unprecedented year which demonstrates again the strength and resilience of our model and the ability of Clipper to deliver a strong performance in the rapidly changing e-commerce and retail environment. We have enabled retailers to overcome challenges and adapt quickly by rethinking the way to operate both their online and bricks and mortar channels.”

Clipper has also announced that the business has acquired Wippet Ltd to grow the firms presence in the life sciences market. The firm said that through Wippet it will launch “an online B2B marketplace to service the broader health care sector in the UK” in September 2021.

The acquisition which is in line with the company’s strategy to grow its presence in the sector, with the plans to initially target the “fragmented elderly care market” which is worth up to £2.5bn per year.

Parkin added: “Additionally, we have entered the life sciences sector in support of the NHS and care sectors, providing fulfilment of vital supplies. The uniqueness of our full end to end solutions combined with our agile and able culture has accelerated our contract wins in the UK and Mainland Europe which is testament to our expertise and execution of our strategy. We are very well positioned to further accelerate growth by capitalising on the structural shift to online and to position Clipper as a global e-commerce and retail logistics enabler.”

Looking ahead the business says that based on its continued performance and recent contract wins and extensions – including ASOS which will see Clipper double its headcount for the retailer from 350 FTE to 700 as the firm consolidates its European returns with Clipper, the board expects profit, as measured by EBIT for FY22 and FY23 to be ahead of the previously reported figures of £44.1m (2022) and £47.6m (2023).