- 5 December 2016
- Transport / Logistics Services
Clipper Logistics saw profits increase by 23% in the half year to the 31st October, driven by strong performances in e-fulfilment and returns management.
The company’s Group revenue rose 15.5% to £164.9 million in H1 while Group EBIT was up 23.2% to £7.6 million.
EBIT in e-fulfilment and returns management was up 21.7 per cent to £4.2m.
Clipper Logistics Chairman Steve Parkin said: “Our market-leading position in the high-growth area of e-fulfilment and associated services, has been enhanced further by the recent formalisation of a Joint Venture with John Lewis to provide a Click and Collect service dedicated to the needs of high street retailers. We expect this to significantly enhance profits in future financial periods.
“The new business pipeline continues to be strong, and we expect the positive momentum from existing and new contracts to continue into the second half of the year.”
In the eyes of the management of Clipper Logistics, the UK’s exit from the EU is likely to have minimal impact on the Group’s trading for the foreseeable future.
“The nature of contractual relationships in the UK logistics sector, with approximately 70 per cent of revenue on open book terms, provides a very high degree of protection against both cost inflation and volume downsides. Similarly, the Board expects that there will be little or no impact within the commercial vehicles sector. It remains to be seen whether the government’s desire to restrict immigration will have a longer term impact on labour availability, but the Group’s contractual structures mean that it is well-placed to be able to compete for labour were that necessary in the future.”
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