Clipper Logistics' "very strong year" boosted by major contract extensions
Organic growth up “significantly” and service extensions to some of its major retail clients ensured Clipper Logistics delivered “very strong” results for the year’s trading ended 30 April.
The logistics solutions, e-fulfilment and returns management services company also said Wednesday the business is “rapidly growing” in mainland Europe, thanks to post-pandemic momentum with “strategically aligned acquisitions” also driving the business.
That basket of positives helped push group revenues up 39.1% £696.2m across the 12 months. Underlying EBIT jumped 52.4% to £31.4m while reported EBIT lifted 22.5% to £39.8m. Group profit after tax rose 33.8% to £21.7m while underlying post-tax profit leapt 61.9%. Cash generated from operations lifted 44% to £86.9m as net debt1 was cut to £16.9m from £45m a year ago.
It said organic growth was particularly driven by high e-fulfilment volumes “as a result of the permanent structural shift to online”, while those contract extensions included ASOS, Farfetch and John Lewis. It also pointed to record volume gains via its Click & Collect joint venture with John Lewis. New contract wins included Revolution Beauty.
Other 12-month highlights included the commencement of new operations with Mountain Warehouse and JD Sports, the integration of the River Island site in Milton Keynes into the Clipper portfolio following the outsourcing of its logistics, and the opening of a new facility for Farfetch in Venray, the Netherlands “providing a pan European solution”.
With the business having made a “strong start” to the new fiscal year and with trading “in line” with its recently-upgraded guidance, executive chairman Steve Parkin said: “The market has witnessed significant recent change particularly with the acceleration of the growth in e-fulfilment which now represents 70% of our logistics revenue.
“Our recent contract wins demonstrate that we are our customers' partner of choice both in and outside of the UK”.
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