Clipper Logistics buys Servicecare for £5.7m
YORKSHIRE-HEADQUARTERED logistics company Clipper has bought Servicecare Support Services for £5.7m.
Leeds-based Clipper Logistics – which floated on the stock market earlier this year – works with major retailers including John Lewis, ASOS, Asda and Tesco.
Servicecare operates from sites in Oldham, in Greater Manchester, as well as Barton, in Staffordshire, and is a specialist provider of returns logistics services to consumer electronics manufacturers and retailers.
It had sales of £10.4m, profits before tax of £1m and assets of £3.9m for the year ended September 30 and it works for a range of companies including Shop Direct, Argos, Richer Sounds, Panasonic and Tefal.
In the financial year to 30 April 2014, Clipper launched its “Boomerang” brand, which was introduced to focus on the growing requirement for returns management services by the clothing and non-electrical general merchandise sectors.
Steve Parkin, executive chairman of Clipper, said: “The purchase of Servicecare is an important step towards broadening the Boomerang brand.
“The returns arena is the battleground for competitive advantage and we are delighted to add a further string to our bow.
“Servicecare is a successful and profitable business with an impressive blue chip client base that complements Clipper’s already strong market position and long-standing relationships with retailers.”
Clipper also released its interim results for the six months to October 31 2014 this morning.
These saw group revenues up 20% to £111.6m from £93m in 2013 while its earnings before interest and tax (EBIT) were 28.8% ahead at £5.2m (2013: £4.1m).
It has also paid its maiden interim dividend of 1.6p per share while reducing its net debt by £0.4 million to £14.2 million.
Mr Parkin added: “These are the first interim results of Clipper post-initial public offering and I am pleased to report that the group has delivered results in line with the board’s expectations, with strong revenue and profit growth, and good cash conversion.
“Clipper continues to have a market-leading position in the high-growth area of e-fulfilment logistics and has seen strong organic growth on existing contracts complemented by the impact of new contract wins.”
